I know that you’re seeing holiday shopping displays at the stores If you are like me, you’re thinking, “Is it time to think about that already? Halloween hasn’t come yet!” Yes, it’s that time – not to prepare for Christmas, but to prepare for year-end.
For me, October is a time when I set up a meeting with my tax preparer and start year-end planning With three quarters of the year gone by, I have a good idea of where the year stands financially.
You can start now by taking the time to meet with your tax preparer Gather up your information on income and donations, profit and loss statements, and any new financial circumstances or events Did you have more out-of-pocket medical expenses this year? Mortgage changes? Defaulted loans?
After your tax preparer has reviewed your information, you can ask him what you can do before December 31 to improve your tax returns Here are some questions you could ask:
- Should you pay your January bills in December
- Do you need to make more donations?
- Should you hold off on the major purchase?
- Should you contribute more to my retirement accounts?
- Should you do renovations / improvements to your home to take advantage of the tax credits that might not be there next year?
Don’t wait until mid-December when you are crazed with the holidays, or worse yet, January, when it’s too late to take action for 2010.