Finalize Your Taxes
You have more than a month left before your taxes have to be in, so use that time to make sure your taxes are done fully and correctly. Have you received all the refunds you’re entitled to? Take a look at our post on the most overlooked tax breaks to make sure you’re not missing out. Are you missing any necessary documents, or have you sent them in to your accountant? If not, now is the time to get that done.
Have a Plan for Your Refund
Prepare for Next Year’s Taxes
First, reassess how your taxes went for the past year. What were your frustrations, and what did you procrastinate on? Those issues are fresh in your mind, so take steps now to make the process smoother next year.
You should also make sure your withholding for the upcoming year is accurate for your situation. If you withhold too much, you’ll get a refund at tax time. But could that money serve you better by staying in your paychecks? If you have too little withheld, you’ll end up owing at the end of the year.
Keep an eye on what you’re withholding, and if you’ve had a job change, got married, had a baby or had any other significant life event, make sure you’re claiming what is appropriate. There is an IRS withholding calculator to help you make your estimate. See this post on tax preparation for more.
Check in with Your Resolutions
If you set goals for the year ahead, now is a perfect time to check on your progress. Most people abandon their resolutions by February.
If you take the time to familiarize yourself again with what you want to achieve, you’ll be able to continue tackling those goals in the second quarter. Even though we’re only a couple months into the new year, you may need to adjust or change those resolutions to suit your current progress.
Assess Your Savings
Are you allocating your money in a useful way? This is a great time to check in with your funds and make changes as necessary. Your cash flow and savings will help support other financial goals, so staying on top of those accounts will lay the groundwork for financial success throughout the year.