Tax season is here and can be a stressful time for many, but with the right preparation and knowledge, you can make the process much smoother. In this article, we will explore several tips that can help you navigate through the filing season with ease.
Understand Your Filing Status
An important step in preparing your taxes is to understand your filing status. There are five main filing statuses that taxpayers fall under: Single, Head of Household, Married Filing Jointly, Married Filing Separately, and Qualifying Widow/Widower with Dependent Child. Each status has different filing requirements and may qualify you for certain deductions or credits. Knowing your correct filing status is crucial as it impacts your tax obligations and potential benefits.
Be Proactive
The 2025 tax deadline is April 15th – avoid waiting until last minute to start working on your taxes. Begin early by gathering and organizing all necessary documents such as W-2s, 1099s, 1098s, etc. Taking your time to prepare can help prevent last-minute stress and ensure accuracy. Be on the lookout for corrected tax forms and K-1s from private investments or business ventures, as these can sometimes surprise you. Common tax documents include:
- Employer W-2
- 1099-DIV
- 1099-INT
- Form 1098 Mortgage Statement
- K-1s from Business Entities and Private Investments
- Business Income 1099-Misc
- Charitable donation receipts
- Property tax statement
Invest in Tax Professionals
Consider investing in the services of tax professionals such as tax attorneys or Certified Public Accountants (CPAs). They can help you organize and prepare your files, keep you updated with the latest tax laws, and maximize your savings. Their knowledge and experience can be invaluable, especially if you have a complex tax situation.
Keep Your Personal Information Updated
It may seem simple, but keeping your personal information updated is often overlooked. If you have recently moved, gotten married or divorced, or legally changed your name, it’s important to update this information with the IRS and Social Security Administration (SSA) before filing your tax return. This ensures that your records are accurate and can prevent potential issues with your tax filing.
Plan Ahead
It’s never too early to start planning for the upcoming year. Early planning can bring peace of mind as you navigate through the filing season. Engage your advisors to help you think long-term and make informed decisions that can benefit you in the future.
Disclaimer: Sendero® does not provide legal, tax, or accounting services. The content in this article is provided for informational purposes only and should not be relied upon as financial recommendations or planning advice. We encourage you to seek personalized advice from qualified professionals regarding all personal finance and tax matters.
