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Last month of 2012 to do tax planning!

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Last month of 2012 to do tax planning!

As we get to the final weeks of 2012 it is time to start thinking about taxes and planning for them.  With the uncertainty in Congress planning may be a little tricky this year, however; it may still prove very useful.  There are many changes that are scheduled to take effect for tax years ending after December 31, 2012. 

• The first one to affect everybody is the expiration of the 2% payroll tax cut on December 31, 2012.  This will cause a decrease in take home pay effective with their first payroll check of the year.  It would be a good time to review your withholdings and see if anything needs to be adjusted for the coming year. 
• It won’t be long before paperwork and important information start rolling in for tax time.  It is a very good idea to designate a specific file, folder or drawer to put this information in to keep it organized for appointment time.  It is best to get into the practice of putting the information in there as soon as it is received so that lessens the risk of it getting misplaced or lost.  In fact, it is a good idea to start doing this at the beginning of the year.  You can save medical receipts, car license registration, property tax stubs or anything else you may need so that it saves the hassle of having to search for them at the end of the year.

Anybody can benefit from tax planning, it is not just for farmers or businesses.  Meeting with your CPA or accountant before year end can give you a glimpse of what to expect on your upcoming tax return.  Maybe you need to adjust your withholding amounts for the rest of the year or maybe you could make one more charity donation or even contribute money to your IRA.  Maybe something you were planning on in the next year would better benefit you this year.  It never hurts to ask or be prepared.  Now would also be a good time to let your CPA or accountant know of any big or major changes that may have happened: marriage, birth of a child, adoption, bought or sold a house etc.  

If you have any questions or would like to schedule a tax planning appointment please give us a call at 641-472-3156, and one of our accountants would love to work with you!

Missi Holmes

Business Manager/Staff Accountant