Six Tax Tips You Should Start Thinking About Now

Tax planning doesn’t end in April, and the right questions year-round can help you keep more of your money.

A sign outside the Internal Revenue Service building is photographed May 4, 2021, in Washington. AP/Patrick Semansky

Now that tax season is over, you’re probably tempted not to think about taxes again until next year. That could be a costly mistake. Asking the right questions throughout the year could help you financially when next tax season arrives. In the long run, this could have a substantial impact on your wealth.

Here are six common ways taxpayers get off track and the questions they should ask themselves during the tax year.

Don’t Assume the Answer Is the Same as Last Year

Taxpayers often default to “same as last year” thinking. But tax outcomes depend on variables that shift constantly, like income, markets, tax laws, interest rates, and personal circumstances.