Six Things You Should Do in Addition to Your Taxes Each Year

Taxes

Tax time isn’t just for taxes anymore.  While you have money on your mind, take some time to do some additional financial chores to keep you financially secure and healthy.

Get a copy of your credit report

Get an updated copy of your annual report and if you can afford it an update on your credit score.  By law, everyone is allowed to have one free copy of their credit report each year.  Prices for credit scores start around $20.

Estimate next year’s taxes

Things like buying or selling a home, having a baby, or relocating can all affect your  next year taxes, so be sure you are prepared by estimating how much you will owe in taxes and adjusting your withholdings.  Turbo Tax has some great free tax calculators you can try to help you estimate next year’s taxes.

Set up a filing system

Set up tax filing system for next year’s taxes and be sure to include a new tax prep checklist.  This way when you run across a receipt or make a charitable donation during the year, you will have a place to put it and not have to hunt around for it next year.

Shred old documents

Tax time is a great time to shred financial documents you no longer need and reduce paper clutter in your home.  Use this schedule to determine what you should keep and what to shred.

Meet with a financial planner

Financial planners can help you create plans to save for retirement, pay for college educations, or make the right investment choices.  Finding a financial planner you can trust may be a little harder.  Start by asking trusted friends and family first.  If you can’t find one this way, try some of the resources mentioned in this article on the New York Times.

Make sure your will is still up to date

Every parent needs a will and guardians named for their children.  If you don’t have one, now is the time to get one done.  If you already have one, take some time to meet with your lawyer to make sure everything is still up to date and current.