The tax filing deadline might still be a few weeks away, though it may be a good idea to get things done sooner rather than later. Whether you handle your taxes on your own or you hire a CPA, getting a head start on your taxes gives you plenty of time to gather the necessary documents and avoid any headaches or last-minute filings come April 15th.
Get started on your taxes with these tips and tricks, including updates on some of the recent changes in the tax code that you should be aware of.
Start as Soon as You Can
To make your filing process easier, start your taxes now if you haven’t already. Familiarize yourself with the new forms and any changes in tax guidelines that may impact your filing.
Determine if you need additional time to submit your filing, and file an extension if you’ll need more time to complete it. Just be sure to pay what you owe before the deadline to avoid any fees or penalties.
Review Forms for Accuracy
Carefully review any tax forms you’ve received this tax season, like a W-2 or 1099 from your employer. Look out for any missing or incorrect information and request a corrected form if you come across any issues.
While small errors or mistakes may not seem like a big deal, your filing may be delayed or rejected if important details like your Social Security number, name, or address do not match up.
See if You Can File for Free
The IRS Free File program allows certain taxpayers to prepare and file their federal income tax returns using guided software at no additional cost. For the 2024 tax year (filed in 2025), you qualify for the program if your adjusted gross income (AGI) is $84,000 or less. This is an increase of $5,000 from the previous year, so more filers can qualify for the program this year.
Decide Between Itemizing and Standard Deductions
Filers have the choice between itemizing deductions or taking the standard deduction. While you can generally choose either option, it’s best to take the route that will lower your taxable income by the greater amount.
The standard deduction for 2024 taxes has increased for both single and married filers. Take the time to consider which option would provide the greatest benefit to you to avoid overpaying.
Contribute to Your IRA
Be aware that the IRA contribution limit has increased by $500 to $7,000 for those below the age of 50 and to $8,000 for those aged 50 years and older. Maxing out your IRA contribution provides a favorable tax benefit while also helping you prepare financially for retirement.
Speak with a Tax Professional
Given ongoing changes to the tax codes, filing requirements, and the IRS itself, you may have questions about your unique tax situation. Don’t hesitate to contact a licensed tax professional to receive specific advice and assistance.
From questions about dependents to business write-offs, a tax professional can give you the peace of mind that your filing is accurate and complete while also helping you avoid paying more than you need to.
