7-Tips-For-US -Tax-PlanningSo you’ve filed your taxes and you’re thinking of kicking back and forgetting about them for a while.

Here’s a tip: Avoid the temptation.

Now that it’s all fresh in your mind, just get the foundation ready for the next tax year. Just do it! It will save you lots of hassle for when you file next year.

Simply set up your personal system to keep track of your tax records and keep them safe and easy to find.

Here are some more tips to keep you ahead of the game for next year’s US tax filings:

  1. Start planning for next year’s taxes now! You’ve just gone through all the motions – just replicate what you did this year, see what you can do better next time, and have it all ready to go for the next year.
  2. Stay organized. Make it easier on yourself. Keep all your tax records in the same place during the year. Use a filing system that will help you find all your records for tax filing next year. It’s a good idea to use your last tax return as reference when you do your tax preparation next year.
  3. Keep your records safe. Put your 2014 tax return and supporting records in a safe place. A fireproof pouch or safe is a common option. Create backups and PDFs of your paper documents and store them on a portable hard drive, which may also be safely stored. Make your tax documents easily accessible in case you ever need them. For instance, you may need a copy of your tax return if you apply for a loan or financial aid.
  4. Take action when your circumstances change. Life events can affect your tax liabilities e.g. moving abroad, change in salary, getting married to a non-resident alien or having a child. When this happens, simply consult with a qualified tax professional to see what actions you need to take in order to get any financial assistance necessary and to optimize your tax planning.
  5. Think about tax optimizing. If you claim standard deductions on your tax return, you may be limiting yourself when you could in fact get your tax liabilities closer to zero! Optimizing your tax return through the use of deductions, exclusions and credits is just the start. Plan effectively and make sure you are timing payments and receipts optimally. Also, choose investments wisely and know the tax consequences and advantages of when and where to put your hard earned capital.
  6. Be in the know about tax matters that affect US tax payers abroad. Subscribe to our newsletter or monitor the official IRS website about tax law changes, how to save money and much more. You can also get Tax Tips on our social media and YouTube channel
  7. Shop for a US tax preparation service. We know that are many tax services for expats out there. So choose your US tax accountant wisely and make sure you choose one that is right for you. It helps to work with a firm or CPA that understands your circumstances before and during your stay abroad. It is also helpful to make sure the tax practice has qualified individuals who are familiar with tax matters in the country of residence.

If you’re an American of Green Card holder living abroad, planning for your taxes now can pay off with tax filings this time next year.

Let us know if you found these tips helpful. We are always looking forward to your feedback. Feel free to share this information on your social media platforms.

A great way to get more information on US taxes abroad is to watch our videos. You can also subscribe to our newsletter for regular updates.

Additional Resources:

About US Tax Practice GmbH:
US Tax Practice offers U.S. tax services in Switzerland. It is the go-to tax preparation service and compliance practice for U.S. tax payers. Located in Schaffhausen, Switzerland, the company was founded by Patrick Evans, a U.S. tax accountant (CPA) and U.S. citizen determined to work with his clients’ best interests in mind. US Tax Practice GmbH services include U.S. Income Tax Preparation, U.S. Tax Compliance, Foreign Bank Account Reporting (FBAR), Tax Planning and Optimization, and Expatriation.

Recent Posts