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TOP 10 NEW "TAX" YEAR
RESOLUTIONS
You’ve just finished your year-end planning
for your 2004 tax return. Now it’s time to give some thought
to the 12 months ahead. What are the most important steps you can
take in 2005 to improve your financial health and shed unwanted tax
liabilities? H&R Block has created a Top 10 list of New “Tax”
Year Resolutions to help you get in shape financially – and
stay that way.
- I will take charge of my finances
– Take control of your financial future by developing a
detailed understanding of your income and expenses and by establishing
clear financial goals.
- I will keep better records –
When receipts get lost, it’s easy to miss out on deductions
for charitable contributions, medical and educational expenses
and business costs. By taking a minute to develop a simple, fail-safe
method for hanging onto to those annoying little slips of paper.
- I will save for retirement –
Start now. It gets here sooner than you think. Not only will you
be protecting your future, but you’ll enjoy tax benefits
today.
- I will review my W-4 Withholding –
Fine-tuning your payroll deduction gives you the opportunity to
increase cash flow, reduce year-end tax liability or boost your
refund. Think about your financial requirements and objectives
and take command of your paycheck.
- I will file my taxes electronically –
Whether you do it yourself or rely on H&R Block’s experienced
tax professionals, filing electronically cuts tax preparation
time, speeds your refund and lessens the likelihood of an error.
With do-it-yourself options like hrblock.com and TaxCutâ
software, you can take advantage of built-in questions, check-lists
and safeguards, and even have your return reviewed by a tax professional.
- I will know my tax rights –
Because the IRS will allow taxpayers to amend returns filed in
any of the prior three years, consider taking the free Double-Check
Challenge: An H&R Block tax professional will check your past
three tax returns to ensure that no deductions or credits were
overlooked, the right filing status was claimed and the tax calculated
correctly.
- I will purchase a home – Buying
a home can be one of the most positive and far-reaching financial
decisions you will make. Not only are you building equity in an
asset that typically increases in value, but you’ll reap
a number of benefits and deductions at tax time.
- I will start saving for my child's education
– In 15 to 20 years, it will take an estimated $170,000
to $230,000 to finance your child’s college tuition and
living expenses, depending on the type of school they choose to
attend. So get started now. There are a wide range of college
savings plans out there, and even a small regular contribution
will grow and compound dramatically over time.
- I will claim my education credits for classes
– The federal government has created several important credits
and deductions designed to help defray the cost of higher education.
Talk to a financial professional about how these options might
help you.
- I will deduct my student loan interest
– Provided you fall within certain income guidelines, the
IRS allows you to deduct the interest paid on any loan used exclusively
to pay for education expenses (including room and board) for yourself,
your spouse or a dependent.
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