What other ways can I defer this year’s income?

If you own your business you may want to postpone sending certain invoices to ensure that you will receive payment in the following tax year. This can help greatly if some of this income would push you into a higher tax bracket. You may want to accelerate paying for expenses to cover your taxes in the current year.

What retirement plans are available to aid in the deferral of taxes?

You have the ability to invest some of the money that you would have paid in taxes to add to your retirement fund. Many employers will offer the opportunity to defer a portion of your earnings and contribute them directly to your retirement account. Some of them may even match a portion of your savings. If this is the case, it is always advisable to save at least the amount that your employer will match. This will give you an automatic 100% gain on your money.

If you are self-employed, look into getting a Keogh, SIMPLE or a SEP IRA.

What investments can I make to help defer taxes?

The interest gained from state and local bonds is usually exempt from federal income taxes. These investments generally pay back at a lower interest rate than commercial bonds of similar quality.

Since Treasury Bonds are similarly exempt from state and local income tax, they can be a particularly good investment for those who are in high tax brackets and live in high-income-tax states.

If I have a large capital gain this year, what can I do?

If you have a large capital gain this year from an investment, it may be advisable to hold onto the investment until next year to put the gain into next year’s taxes. You may also want to sell off any investments that you have that are losing value at the moment to claim your losses.

Being self-employed, what sort of deductions can I take?

To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

How can I receive official IRS Tax Forms?

The IRS provides two methods to receive official IRS Tax Forms. Call 1-800-TAX-FORM (1-800-829-3676) or click here to order Information Returns and Employer Returns online, and the IRS will mail you the forms and other products.

What do I need to bring with me to complete my tax return?

This is a list of items commonly needed for income tax preparation:

Personal Information
A photo ID
Your social security number (your social security card if available)
Your spouse’s full name and social security number (is filing a joint return)Amount of any alimony paid and ex-spouse’s social security number (if applicable)

Other people who may belong on your return
Childcare records, including the provider’s ID number (if applicable)
Approximate income of other adults in your home (not spouse, if you’re filing jointly)
Form 8332, copies of your divorce decree, or other documents showing that your ex-spouse
is releasing their right to claim a child to you

Employee Information
W-2 Forms