Tax season might seem far away, but getting ahead now will save you stress later. Tackling a few tasks to complete now for tax season ensures you’re prepared for filing and won’t miss out on deductions or credits. From organizing financial documents to reviewing last year’s return, it’s time to take action. Here’s your simple guide to staying on top.
1 . Gather All Necessary Documents
Start by collecting all your financial documents, including your receipt and any other forms related to income reporting. Ensure you also gather statements from your financial institution, such as your bank or investment accounts.
These documents will be key when you prepare your taxes and ensure you have everything needed to file accurately.
2. Review Last Year’s Return
Before you start a new year’s taxes, take a quick look at last year’s tax return. Check for any tax forms or deductions you may have missed. This will help you find any patterns or tax benefits you can use again.
Looking back makes completing your tax preparation for the new year easier, ensuring you don’t miss any crucial tax-advantaged accounts or strategies. This is one of the most important tasks to complete now for tax season.
3. Update Personal Information
Ensure your personal details are current, especially if you’ve moved, changed your name, or had a big life change, like getting married or having a baby.
Updating your information with the IRS prevents mistakes and delays when filing your taxes, ensuring your tax forms are ready to go. Therefore, it is necessary to complete it now for tax season.
4. Work with a Tax Professional
Don’t hesitate to work with a tax professional if you’re feeling overwhelmed. They can guide you through complex deductions, tax laws, and credits that apply to your situation.
A professional can also ensure your tax preparation is error-free and help you maximize your tax refund. Sometimes, it’s worth the investment to avoid potential headaches. Hiring help is one of the tasks to complete now for tax season.
5. Set Up a Tax Filing System
Staying organized is crucial during tax season. Set up a simple system to keep track of receipts, forms, and essential papers. You can use an app or even a folder to store everything in one place.
Organizing your files will make finding what you need when filing much easier. It is one of the best tasks to complete now before tax season begins.
6. Consider Quarterly Payments of Estimated Taxes
Suppose you’re self-employed or earn extra income; plan for quarterly payments of estimated taxes. Paying smaller amounts throughout the year helps you avoid a big, stressful bill at tax time.
It also lowers your chances of paying penalties. Record your payments to stay organized and ready. Also, be proactive about completing these tasks now for tax season.
7. Use a Tax Withholding Estimator
Not sure if you’re having enough taxes withheld from your paycheck? Use a tax withholding estimator. This helpful tool can show if you need to adjust your withholding amounts.
The goal is to balance your tax bill so you don’t owe too much or get a huge refund. This is a key step in completing the tasks you need to complete now for tax season.
8. Track Medical Expenses
Keeping tabs on medical costs is an innovative task to complete now for tax season. Simply save receipts for doctor visits, prescriptions, or health-related expenses. These could add up to valuable deductions, especially if they exceed a percentage of your income.
Use a folder or app to organize everything. Tracking medical expenses now makes it easier to claim deductions and avoid scrambling later during tax preparation.
Time to Take Action
Getting ahead on tasks to complete now for tax season might seem easy, but doing them early can save you tons of stress later. Start by gathering your documents, reviewing last year’s return, or using a tax estimator. These small steps can make tax time simple and stress-free. Don’t wait—get started today for a smoother filing process.
