It is the first week of November and that means it is time to issue our annual tax alert. Okay, this is the first one, so annual might be a bit of a reach, but you get the idea.

Why a 2010 tax alert? Simple. The year is almost up. We are about to get busy with holidays, which means your year is going to get hectic. Before that happens, it is time to get your act together when it comes to your 2010 taxes. There are two steps to consider.

Do you have a CPA or tax professional that does your taxes? If so, you need to make an appointment with them to go over your finances for the year. What needs to be changed to minimize the tax hit when you file on April 15, 2011? If your tax professional sits there like a bump on a log or doesn’t have any good ideas, this should be a sign it is time to dump them and find a proactive CPA who can save you a bundle. How ever it goes, now is the time to get your financial house in order. 

Okay, what if you don’t make enough to warrant hiring a CPA? That’s okay. You can still take steps to minimize your tax hit as well. There are a couple steps to take. Consider how much you’ve put into retirement programs like 401ks and whether any additional monies should be moved over. Also, consider whether you’ve been withholding too much or not enough money each paycheck and make an adjustments necessary. 

January 1, 2011 will be a new year for all of us. Unfortunately, it is also the first day that most of the tax adjustments you can make for the 2010 tax year are terminated. Don’t end up paying more tax than you need to because you procrastinated now. Give yourself an early holiday present. Get your tax situation together now and save some serious money.