Naturally, planning ahead is all important. It's easy to prepare last year's tax return, but there isn't much that be done to change the results. On the other hand, you might be able to do things now that will help you when you file next year. The best practice is to do simple tax projections at midyear and again late in the year while adjustments are still possible. It's also important to check the tax implications of any unusual events as they happen. Selling an asset, receiving a bonus, beginning to work as an independent contractor, or changing your marital status are only a few of the events that can cause an impact on the tax you will owe. Planning now saves pain later on.
