WASHINGTON – Tax experts say a little preparation now could avoaid a costly tax season come April 15 in the face of the largest tax overhaul in decades.
“A lot of people are wondering am I going to owe money? Am I gonna get money back,” said Chris Burns, Financial Planner with Dynamic Money.
Experts say among the steps people should consider this year is to increase contributions to their retirement plans, saying it may be too late to maximize 401-K plans, but not too late for other saving accounts.
Also, giving to good charity causes can garner major tax benefits. The new tax bill doubled the standard deduction for single taxpayers to $12,000.
People are encouraged to calculate their tax liabilities. While it is too late to make major changes to tax witholding, people can estimate what they may owe next tax year and adjust their witholding with 2019 in mind.
The last tip experts offer is for people to organize their financial documents. This, they said, is the most tedious process but can help people file sooner.