Preparing for the New Year With 2020 Tax Resolutions
While a new year means new commitments to health and happiness, individuals should also make goals for their financial wellness. With tax season opening at the end of January, making some new year’s tax resolutions can make a big impact and require little follow through. Although new tax laws from the IRS and Congress can’t always be anticipated, it is a good idea to try to avoid as many surprises as possible when it comes to your taxes.
First and foremost is to take a step back and evaluate your plans for 2020. These include personal plans, business goals (if you are a business owner), and whether any of these impact your tax withholding. Some examples of significant plans or changes include having a child, purchasing a home, and getting married. A quick check on the IRS website or a consultation with a tax advisor can help determine if you are withholding too much or too little.
Even more important may be a look at your beneficiary designations. When working on non-probate assets like retirement accounts or life insurance policies, you must be sure to have the proper beneficiary designations in place. With changes to IRC §401 and other parts of the law, the way that you contribute and benefit from non-probate assets has changed. Being proactive and taking a look at the pieces you can control, like beneficiary designations, can give you more peace of mind. In addition to this, estate planning documents are important items to review. Changes in federal estate taxes and exemptions may have an impact, and even if they don’t, there may be reason to adjust for new goals or changes in your life.
A final tip is to always stay aware and up to date on policies and changes to tax laws. Following the correct procedures and remaining compliant, especially when it comes to alternative interests like offshore accounts or virtual currency, is as important as ever. Most people might not realize it, but the penalties for willingly ignoring tax laws can be incredibly serious. While these resolutions don’t require much more than a bit of time and consideration, they can offer massive benefits later during tax time.
Talley’s experienced team of tax professionals provides comprehensive tax compliance and consulting services so you can preserve, enhance, and pass on to the next generation the assets and wealth that you’ve worked hard to build. We welcome the opportunity to discuss the current opportunities available to you. For more information, contact us today.