Tax season can be overwhelming for many but with the right preparation, positive mindset and this tax prep checklist to help you, it can be smoother than you think.

Proper planning means that you can avoid last-minute stress and keep mishaps to a minimum — even avoid them altogether — so that you can maximize the most out of your tax return.

Here are 7 essential tips that we believe will get the whole process off to a great start for you.

1. Organize Your Financial Documents

One of the most important steps in the tax filing process is to gather all the necessary documents together and have them ready to submit to your tax accountant.

Keep the necessary documents in a safe place like a digital or paper filing system so you can access them easily. We recommend gathering the following items as soon as you can.

• Income Statements: Obtain W-2s if you’re an employee and prepare 1099s if you own your own business, together with any other income-related documents.
• Expense Records: These include receipts for deductible expenses such as business costs, medical bills, and charitable contributions, if that applies to you.
• Investment Information: This includes forms like the 1099-DIV, the 1099-INT, and the 1099-B for dividends, interest, and stock sales.
• Tax Forms from Previous Years: These forms can serve as a reference for any carryovers or deductions.

2. Review Tax Law Changes

Tax laws and inflation reduction adjustments can change from year to year, impacting deductions, credits, and filing requirements, so it’s important to take the time to do the following:

• • Check for updates to tax brackets and standard deduction amounts.
  • Review any new credits or deductions that may apply to you.
  • Understand changes to business tax requirements if you’re a small business owner.

Remember that we are here if you need to consult us on any of the above. However, a check of the IRS website will also help you stay informed.

3. Maximize Deductions and Credits

Before you submit your filling, it’s important that you take full advantage of any available tax breaks that you may be entitled to. Common deductions and credits include the following:

• Education Credits: Be sure to avail of the American Opportunity Tax Credit or Lifetime Learning Credit if you are in school.
• Energy-Efficient Upgrades: If you made qualifying upgrades to your home, be sure to avail of this deduction.
• Retirement Contributions: Be sure to contribute to an IRA or 401(k) plan since it may reduce your taxable income.

Maintain detailed records to substantiate any claims in case of an audit.

4. Check Withholding and Estimated Taxes

If you’ve experienced major life changes, such as getting married, having a child, or you started a new job, you’ll need to review your tax withholding. Adjust your W-4 form with your employer if needed.

If you’re self-employed or you are the recipient of a non-wage income, such as disability income, retirement plan/pension income, income from social security, and more, be sure to make the sufficient estimated tax payments to the IRS throughout the year.

5. Prepare for Filing Early

If you procrastinate, that can lead to errors in your tax filing as well as missed deductions and penalties. You should start early by doing the following:

• Setting aside dedicated time to work on your taxes.
• Reviewing all documents and calculations thoroughly.
• Filing electronically to speed up the tax return process and any refunds you may be entitled to.

6. Set Goals for Next Tax Year

Use this tax season as an opportunity to improve for next year’s filing by creating a system that tracks your expenses and income year-round.

If needed, we can set you up with a financial advisor who is affiliated with our firm so that you can confidently plan for the future, including retirement.

Be sure to drop us an email at [email protected] if you have any questions about this tax prep checklist or other tax-related questions.