As 2013 wraps up, many of us have our minds on friends and family with the holiday season in full swing. However, a season that may deserve a little of your attention between Thanksgiving turkey and New Year’s Eve champagne is tax season, which is lurking around the corner in April. It’s never too early to prepare, and the year-end marker can be an important time to get your tax-related affairs in order. The blog Tax Break from TurboTax has come out with a series of posts for improving next year’s April woes. Check out these seven pointers for 2013 to make next year’s tax returns a little bit easier to handle.
1. Be mindful of holiday bonuses
It’s always a great feeling to have that bonus check in hand, but sometimes it may not be the optimal scenario for your tax accountant. Boosting your income by a slight margin could shift you to a higher tax bracket for the year, offsetting your bonus and then some. Consider if it’s better to realize your bonus in 2013 or 2014 and inform your employer accordingly.