2 Tips To Organizing Your Income Tax Schedule

The income tax schedule is the income tax rates for a person in a given year. These rates are set by Congress and change to reflect any changes in the tax law. Once set, it is the role of the IRS to enforce the law and collect taxes in accordance to your tax schedule rate. Organizing your income tax schedule requires you to understand what the schedule rate is based on your income and what deductions and credits may be due you.

Understand Current Tax Liability

Changes in the tax laws, and more specifically tax rates, take place at the end of the year and are not published until January. Once you have obtained this information, you will have a sense of your tax liability and the amount of potential tax or refund that you owe or are due.

Organize Credits and Deductions

Understanding the potential liability will allow you to pull together all deductions and other tax credits that may be due you. This includes items such as charitable contributions, homeowner improvements, energy tax credits and other types of deductions and contributions that will help to reduce your tax liability.