Generally when we think about tax preparation we link it to April 15th, or perhaps a few weeks leading up to the 15th. We scramble to get everything prepared for our tax preparer and we desparately try to relive the entire year in an attempt to find anything that we can do reduce our tax liability.
The reality of the matter is that our taxes are accruing everyday, not just leading up to the 15th of April. So it would be wise for us to prepare for our taxes or our tax situation all year long. By becoming educated on the what our tax liability is and what things affect it we can then adjust our daily lives to reduce the tax liability that we have. That’s not to say that you will eliminate your taxes or pay anything less then you should. It just means that you won’t overpay or have to scramble and the end of the year. When we scramble we often have to guesstimate on what amounts we spent or contributed and that leaves us more vulnerable in the event of an audit. For some tax saving tips and advice visit the Fox Peterson Learning Center at https://foxpeterson.com/learning-center/.