Happy New Year of 2015! Not too late for your tax resolutions

All right, you might need another cup of cup of coffee (or two more). Or maybe you want to wait until the end of the game before thinking about taxes. I get it. I was getting up to speed with the last season of Walking Dead as I typed this.

But soon you´ll need to think about taxes. Not only are there tax tasks related to filing you 2014 returns, but you need to consider strategies that will help you reduce your 2015 tax bill.

So first, let´s knock out the tax goals for 2015, which I know you´ll find easier to keep that the usual New Year resolutions such as lose weight, reduce stress and eat healthier.

1. Keep improved tax records. This not only will make filing easier, it will ensure you get all the tax breaks you are entitled to. This of course covers the plethora of tax documents that will be coming in piecemeal in your mail box as well as the receipts you´ve collected last year. Get those 2014 materials out and in order now so you´re ready to send in your 1040 when the Internal Revenue Service starts accepting returns tomorrow January 20^th.
2. Claim all the tax breaks for which you´re eligible. One general advantage of having great tax records is that they could help you determine which tax breaks you qualify for. Tax deductions to reduced your taxable income and tax credits to reduce your tax liabilities are all there to help cut the tax bill
3. If possible, file early. This is a no-brainer if you are getting a refund for all of the expats who are in their first year abroad in 2014. When you file as soon as you can, which is tomorrow January 20^th this year, your tax cash will be in your bank account or hands sooner. Early season filing also a good way to thwart identity theft.
4. Don’t be in a too big of a hurry. In this world of twitter and hashtags (that´s the old man in me talking) fast seems to always be better. Fast is good, correct is better. We all want refunds/or peace of mind ASAP, but if you rush your filing you might make a mistake that could actually slow down your returns and in the case of refund, the cash back process. Or because you didn´t have a good record keeping system, you discounted a form that was slow in arriving.
5. Set aside funds for taxes. For most people, getting tax payments correct means ensuring that you take advantage of the Foreign Tax Credit or the Foreign Earned Income. If however, you are subject to pay estimated taxes either because you have business income and are not protected by the social security agreement between the U.S. and your country of residence, you have to come up with that money yourself. If this is your case, set aside some money each month to go towards your self-employment tax.
6. Watch out for tax scams. Identity theft continues to be a major financial problem and it´s exacerbated at tax time. Con artists use our desire to get our refunds ever more quickly. Or for other who owe, crooks focus on our fears of not meeting our tax obligations to try to get their hands on the payments. Be careful. If you´re contacted by the IRS, be wary. Contact the tax agency directly to find out if the inquiry/warning is legitimate.
7. Stay on top of tax laws. Yes, yes, yes I know that you have Clarionbridge Consulting on your favorites list. Make sure to go beyond the April 15^th or June 15^th filing deadline. For example, inflation has bumped up the amount of Foreign Earned Income Exemption or income tax bracket.Don´t forget about the tax extenders. After finally being renewed on December 19 for the 2014 tax year, they expired again on December 31, 2014. Will they be back this year? If so, when?  Or will they be part of tax reform in 2015? To be continued…Then there´s Affordable Care Act documentation requirements to kick in. Finally, a lot of Americans also must deal with state tax matters especially after their first year abroad.

8. Make tax adjustments when your life changes. This is a paramount element of tax planning, but often forgotten by the general taxpayer population. If you get married, you taxes will get affected. Congrats on getting a child and getting a bigger house for your growing family. Best wishes on that new job in a new country! If you do not adjust fiscally in light of these changes, you could be in for a surprise, and not necessarily a good one, at tax filing time.
9. Find a qualified tax pro. The IRS knows how important it is with today´s complicated tax laws to have a good tax professional. A good tax professional can be of tremendous help throughout the year and beyond the 1040 date of filing. A tax professional can help you stay on top of tax issues that are specific to your situation and make moves that will save you tax dollars in the future.