(910) 319-7834
Tax season is here, and whether you’re an early filer or a last-minute scrambler, getting organized now can save you time, stress, and possibly even money. With tax deadlines approaching, here are the top five things you should be doing to ensure a smooth and successful filing process.
1. Gather Your Tax Documents Early
One of the biggest challenges during tax season is making sure you have all the necessary documents. Start by collecting:
- W-2s (for employees) and 1099s (for freelancers, contractors, or side gigs)
- Form 1098 (for mortgage interest deductions)
- Investment income statements (such as 1099-DIV or 1099-INT)
- Receipts for deductible expenses (charitable donations, medical expenses, and business costs)
- Last year’s tax return for reference
By organizing these documents early, you’ll avoid last-minute scrambling and reduce the chances of errors on your return.
2. Know Your Filing Status and Any Changes
Your filing status determines your tax bracket and eligibility for deductions or credits. If you’ve had major life changes—such as marriage, divorce, having a child, or buying a home, your tax situation may be different this year. Review your filing options (Single, Married Filing Jointly, Married Filing Separately, or Head of Household) and determine the best one for your situation.
3. Maximize Deductions and Credits
Taking advantage of deductions and tax credits can lower your taxable income and reduce your tax bill. Some common deductions and credits include:
- Retirement contributions – Contribute to an IRA or 401(k) before the deadline to maximize tax savings.
- Education credits – The American Opportunity and Lifetime Learning credits can help with tuition costs.
- Child Tax Credit & Dependent Care Credit – If you have children, you may qualify for significant tax breaks.
- Home office deductions – If you work from home, you might be eligible for deductions on certain expenses.
Make sure you review all the credits and deductions available to ensure you’re not leaving money on the table.
4. Decide How You Will File
Will you file your taxes yourself using online tax software, or will you hire a tax professional? If your tax situation is straightforward, filing through an IRS-approved e-file service can be an easy and cost-effective option. However, if you have a complicated tax return—such as multiple income sources, business income, or large investment consulting a tax professional might save you money in the long run. If you don’t have one, we can help.
5. Be Aware of Tax Deadlines and Payment Options
The IRS tax filing deadline for most individuals is April 15, 2024. If you need more time, you can file for an extension, but keep in mind that an extension to file does not mean an extension to pay. If you owe taxes, you should submit an estimated payment to avoid interest and penalties.
If paying your tax bill in full isn’t an option, consider setting up a payment plan with the IRS to avoid additional penalties.
Final Thoughts
By taking these five steps now, you’ll be well-prepared for tax season and can file your return with confidence. Don’t wait until the last minute—getting organized today can help you avoid stress and potentially save money on your tax bill.
If you have any questions about your taxes, be sure to consult with a qualified tax professional or visit the IRS website for the latest updates.
