Get a Jump-Start on Your 2014 Tax Bill

The beach chair is beckoning, but isn’t it also tempting to save a wad of cash? Hold off on the sand and surf for just a bit, and take some time for your midyear tax review. By getting a head start on your 2014 planning, you’re likely to find many strategies to shave your payments to Uncle Sam.

To get started, take out your 2013 return. “Note what is changing for 2014 regarding your income and deductions,” says Martin James, a certified public accountant in Mooresville, Ind. “You need to look at

It’s also crucial, according to James and other tax experts, for taxpayers to take a multi-year approach to their annual tax review. James says a move that could trim taxes one year could “create a tax nightmare in the future.” For instance, he says, a taxpayer who reduces her tax tab each year by pulling money from a taxable account—rather than withdrawing from an IRA and paying taxes—could find herself in a higher tax bracket later when it’s time to take required minimum distributions from a large IRA.

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