Taxes

4 Ways To Prepare Now for Next Year’s Taxes

Tax Planning
Start now to shrink next April’s tax bill

Tax season is behind you, but the smartest time to lower next year’s bill is right now. These four steps — from adjusting withholding to mastering the new tax law — can spare you a nasty surprise next April.

It’s May, tax season is behind you, and the last thing you want to think about is going through that again. But Billshark wants you to think, not only about what unpleasant surprises you may have encountered this year, but how to avoid them next year. And the time to take steps to lower your tax bill is now.

Anything you do—or fail to do—in 2019 will impact your tax return next April, so reviewing these tips now could save you anguish down the line.

1 Adjust Your Withholding

The most important step you can take is to adjust your withholding. If you didn’t receive a refund (many taxpayers didn’t) you now know how much you need to have withheld from each paycheck to prevent you from having to owe next April. If you’re not sure how to calculate that, the IRS has a withholding calculator to help you decide.

Smart money managers, by the way, recommend you aim to come out even at the end of the year. Otherwise, they say, you’re just giving the government an interest-free loan.

Other people use their withholding as a kind of forced savings account, and use the money they receive in April to pay down bills, take a vacation, or spruce up their homes. That’s fine if that’s the only way to make yourself save money, but remember that you don’t make any interest that way. If you can force yourself to put the difference into a high-yield savings account or money market fund, for example, you could be making interest on that money.

2 Start Keeping Receipts

If you don’t already do so, start keeping receipts for things you can deduct next year. This includes medical expenses, charitable donations, and business expenses if you’re self-employed. It just takes a minute to drop things into a folder, and come next April you won’t be trying to recreate your entire year from memory.

Be sure to keep all these receipts together, whether in a physical location such as a file, or on your computer or in the cloud.

3 Review Your 401(k) and HSA

Review your 401(k) or other retirement vehicles you may have and try to increase your contributions as much as possible. Remember, this money is set aside before you pay taxes on it, thus reducing your adjusted gross income before you even consider other exemptions or deductions.

Health Savings Account (HSA) contributions work the same way: All contributions are made in pre-tax income. So if you expect to have large medical bills this year—if you’re pregnant, or contemplating elective surgery, for example—try to put as much into your employer’s HSA as you can afford.

4 Learn the New Tax Law

Learn all you can about the new tax law. One reason people were so blindsided by their tax bill this year is that so many traditional deductions disappeared. Here are a few:

  • property and local income taxes (known as SALT, or state and local taxes)
  • personal exemptions (last year, $4,050 for yourself and each family member)
  • the interest on home equity loans
  • moving expenses
  • job-related expenses such as mileage, professional fees, entertainment expenses, etc.
  • charitable contributions (unless you itemize)
  • tax preparation fees

The standard deduction has doubled, but for those who choose to itemize it may not make up for the loss of deductions in these other areas.

And whatever you need money for, let the professional negotiators at Billshark find it for you. Remember, it costs nothing for you to let us make the attempt.

Share:
Billshark · Bill Negotiation Experts
Helping consumers and small businesses stop overpaying on recurring bills.

Frequently Asked Questions

When should I start preparing for next year’s taxes?

Right now. Even though tax season is behind you, anything you do—or fail to do—during the year will impact your tax return next April. Taking steps now, such as adjusting your withholding and saving receipts, gives you the whole year to lower your tax bill and avoid unpleasant surprises down the line.

How do I adjust my tax withholding?

If you didn’t receive a refund, you now know roughly how much you need withheld from each paycheck to avoid owing next April. If you’re not sure how to calculate it, the IRS has a withholding calculator to help. Smart money managers recommend aiming to come out even at year’s end, rather than giving the government an interest-free loan.

Which receipts should I keep for tax deductions?

Start keeping receipts for things you can deduct next year, including medical expenses, charitable donations, and business expenses if you’re self-employed. It takes just a minute to drop them into a folder. Keep them all together, whether in a physical file or on your computer or in the cloud, so you’re not recreating your year from memory in April.

How do 401(k) and HSA contributions lower my taxes?

Money you put into a 401(k) or other retirement vehicle is set aside before you pay taxes on it, reducing your adjusted gross income before other exemptions or deductions. Health Savings Account contributions work the same way, made with pre-tax income. If you expect large medical bills, try to put as much into your employer’s HSA as you can afford.

Which deductions disappeared under the new tax law?

Many traditional deductions vanished, including property and local income taxes (SALT), personal exemptions, interest on home equity loans, moving expenses, job-related expenses, charitable contributions unless you itemize, and tax preparation fees. The standard deduction has doubled, but for those who itemize it may not make up for the loss of deductions in these other areas.

Save on the Bills You Just Read About

Billshark negotiates your bills for you — no savings, no fee.

Estimate My Savings

4 Ways To Prepare Now for Next Year’s Taxes page context

4 Ways To Prepare Now for Next Year’s Taxes is a Billshark page. It can help you with your bills and your choices, and it can show you how to save.

Prepare for next year's taxes now: adjust your withholding, save receipts, boost 401(k) and HSA, and learn the new tax law. Start cutting your bill today.

Use this page to learn about Billshark. Then go to the part of the site that fits what you need. Small steps add up. You can save a lot over time.

We share this page to help you make sense of your monthly bills, your choices, and what to do next. Keep this page handy. Ask us if you get stuck.

This page links you to more help from Billshark. Use it when you want more detail or a clear next step. You can save a lot over time.

Got a question about a bill you pay each month? This page can help you find the best answer. Read on to learn more. Small steps add up.

Read each part of this page at your own pace. If you need more help, go on to a guide on your topic. It is free to read. Keep this page handy. Ask us if you get stuck.

We put facts and tips in one place. This makes it easy to learn about the bills you pay at home. We are here to help. It only takes a few minutes.

This page can help with real questions. You can learn about your plan, your account, and what you pay each month. Small steps add up. You can save a lot over time.

Use the menu and the links to go from a big question to the facts that fit your own needs. Keep this page handy. Ask us if you get stuck.

We keep things short and clear so you can choose well. You can then read more if you want to. It only takes a few minutes. You are in the right place.

The links on this page help you weigh your choices. They also help you see what you pay and what to do next. You can save a lot over time.

Our goal is to help you spot the bills you pay each month. We also share smart ways to keep them low. Ask us if you get stuck. Read on to learn more.

Come back to this page when you have a new question. It will still be here to help with bills and savings. You are in the right place. It is free to read.

We link the small choices you make each day to the big picture. That means your budget and what you spend at home. We make it easy for you.

Each part of this page helps you see what you need. It may be help with a plan, your account, or a good read. Read on to learn more. Small steps add up.

Use what you learn here to plan your questions. Look at your choices, then take the next step when you are ready. It is free to read. Keep this page handy.

Our pages link to each other. That way, you can find more help and still keep track of what you came for. We are here to help. It only takes a few minutes.

This page makes it easy to find the key facts first. Then you can pick a plan or make a change with less stress. Small steps add up. You can save a lot over time.

Good facts help you see why a bill went up. They also show you what to check before you call or reply. Keep this page handy. Ask us if you get stuck.

This page puts the key facts in one place. It can help you talk with a company about your bills and how to save. It only takes a few minutes. You are in the right place.

Our other pages explain the words you see on a bill. They also help you weigh the pros and cons of each plan. You can save a lot over time. We make it easy for you.

Our tips focus on real choices you can make. Start with the basics, then read a more detailed guide if you need one. Ask us if you get stuck. Read on to learn more.

This page is one of many that we share. Together they cover home costs, the firms you pay, and how to get help. You are in the right place. It is free to read.

Take your time and read this page first. It helps you see your choices and find out what to read next. We make it easy for you. We are here to help. It only takes a few minutes.

We set this page up so you can compare and keep reading. You will not need to hunt for what you want. Read on to learn more. Small steps add up. You can save a lot over time.

Monthly bills come with rules, terms, and fine print. This page helps you find the parts that count for you. It is free to read. Keep this page handy. Ask us if you get stuck.

Our pages give you a clear view of what you pay each month. You can then pick the plan or guide you want. We are here to help. It only takes a few minutes.

Some of our guides cover the basics. Others go into detail on one company or one type of bill. Small steps add up. You can save a lot over time. We make it easy for you.

It pays to read first and act later. This page links you to the next guide if you want to learn more. Keep this page handy. Ask us if you get stuck.

We share guides that help you make sense of your bills. They show your choices and the best next step. It only takes a few minutes. You are in the right place.

Want more detail on a bill, a plan, or your account? Check this page against the links we share here. You can save a lot over time. We make it easy for you.

We group our pages by topic to keep things simple. This helps you stay on track as you read about your costs. Ask us if you get stuck. Read on to learn more.

A bit of background goes a long way. It helps you spot what counts before you check a bill, change a plan, or call us. You are in the right place. It is free to read.

This page is part of our help library. It gives you clear facts and links so you can keep on reading. We make it easy for you. We are here to help.

Your needs can change, so come back any time. Our other pages can help you look into a new cost or plan. Read on to learn more. Small steps add up. You can save a lot over time.

We laid out this page to help you get the facts and compare them. You can then choose your next step with ease. It is free to read. Keep this page handy.

Tax season is behind you, but the smartest time to lower next year’s bill is right now.

It’s May, tax season is behind you, and the last thing you want to think about is going through that again.

Anything you do—or fail to do—in 2019 will impact your tax return next April, so reviewing these tips now could save you anguish down the line.

The most important step you can take is to adjust your withholding.

Smart money managers, by the way, recommend you aim to come out even at the end of the year.

Other people use their withholding as a kind of forced savings account, and use the money they receive in April to pay down bills, take a vacation, or spruce up their homes.

If you don’t already do so, start keeping receipts for things you can deduct next year.

Be sure to keep all these receipts together, whether in a physical location such as a file, or on your computer or in the cloud.

Review your 401(k) or other retirement vehicles you may have and try to increase your contributions as much as possible.

Health Savings Account (HSA) contributions work the same way: All contributions are made in pre-tax income.

Learn all you can about the new tax law.

The standard deduction has doubled, but for those who choose to itemize it may not make up for the loss of deductions in these other areas.

And whatever you need money for, let the professional negotiators at Billshark find it for you.

Right now.

If you didn’t receive a refund, you now know roughly how much you need withheld from each paycheck to avoid owing next April.

Start keeping receipts for things you can deduct next year, including medical expenses, charitable donations, and business expenses if you’re self-employed.

Money you put into a 401(k) or other retirement vehicle is set aside before you pay taxes on it, reducing your adjusted gross income before other exemptions or deductions.

Many traditional deductions vanished, including property and local income taxes (SALT), personal exemptions, interest on home equity loans, moving expenses, job-related expenses, charitable contributions unless you itemize, and tax preparation fees.

Billshark negotiates your bills for you — no savings, no fee.

Billshark helps lower internet, wireless, cable, satellite radio, and other monthly bills.

Our experts handle providers for customers and share updates throughout the process.

Customers pay only when Billshark finds savings on eligible bills.

1 Adjust Your Withholding.

2 Start Keeping Receipts.

3 Review Your 401(k) and HSA.

4 Learn the New Tax Law.

Frequently Asked Questions.

When should I start preparing for next year’s taxes?.

How do I adjust my tax withholding?.

Which receipts should I keep for tax deductions?.

How do 401(k) and HSA contributions lower my taxes?.

Which deductions disappeared under the new tax law?.

7 Essential Steps to Achieve Financial Health and Stability.

How to Choose a Retirement Plan and Save Smart.

How to Stay Successful and Secure in Retirement.

Tips to Better Prepare for Next Year's Taxes.

Smart Financial Tips: Avoid These 6 Money Myths.

Top 3 Money Apps for Better Financial Habits.

Protect Your Home: Why Flood Insurance Matters.

Student Success: Smart Lessons to Learn Before Loans.

Travel Rewards: 5 Myths That Hurt Your Benefits.

Save on the Bills You Just Read About.

All Negotiation Services.

Corporate / Business Billing.

Blog - All Categories.

Home Budgeting & Finance 7 Essential Steps to Achieve Financial Health and Stability Brian Keaney · Jun 17, 2019 · 3 min read Read article.

Home Budgeting & Finance How to Choose a Retirement Plan and Save Smart Steven McKean · May 18, 2016 · 2 min read Read article.

just hired Billshark to lower their bill.