Make Time During The Holidays To Prepare For The Upcoming Tax Season

During the holidays, the focus is on spending time with family and friends. As fun and festive as the season may be, it also means the end of the year is fast approaching. Before you know it, tax season is here. Florida tax-IRS attorney Ronald Cutler encourages clients to take some time off from holiday planning to prepare for the upcoming tax season.

Take Advantage of Year-End Tax Strategies That Can Save You Money

The Internal Revenue Service (IRS) deadline for submitting 2024 federal tax returns is April 15, 2025. The earliest time to file individual returns is January 29, 2025.

Regardless of whether you plan on waiting until the last minute to file your taxes, there are things you can do now to maximize refunds or reduce outstanding amounts owed:

• Review earned income and withholdings and compare to IRS 2024 guidelines, which can give you an idea of whether you might be expecting a refund or will likely owe taxes;
• If you are self-employed, have significant non-wage income, or otherwise owe taxes, making end-of-the-year payments can help avoid penalties;
• Review any Flexible Spending Accounts (FSAs) and determine whether to use them before they expire or roll over into the next year; they expire at year-end or roll over into the next year;
• Make end-of-year charitable donations, which qualify for deductions.

While the holidays are generally associated with spending rather than saving money, consider contributions to retirement accounts as well. In addition to building your nest egg, putting money in IRAs or 401(k)s can lower your taxable income.

How To Organize Your Tax Information Now

Once you take advantage of year-end tax strategies to reduce tax debts or increase refunds, the next step is ensuring you have all the tax information you need. The Social Security Administration (SSA) reports that employers have until January 31, 2025, to file wage statements, so you will have to wait for W-2s and 1099 forms. However, there are other steps you can take to stay organized now:

• Locate your 2023 tax return, which provides relevant information;
• Verify your personal information, double-checking names, addresses, and Social Security numbers;
• Consolidate receipts and bank statements, making sure you have an accurate record of both your 2024 income and expenses;
• Document personal changes in 2024, such as a marriage, divorce, or births;
• Document financial transactions, including property you may have bought or sold;
• Gather proof of expenses, such as child care or college costs and energy improvements to your home;
• Review investments and get current reports to track capital gains or losses.

Get Trusted Legal Guidance From Our Florida Tax-IRS Attorney Today

Taking some time to prepare over the holiday season can help make the upcoming tax season go more smoothly. To discuss the best tax strategies in your particular case, contact Florida tax attorney Ronald Cutler, P.A. As a CPA and former FBI special agent in tax cases, he has over 50 years of experience navigating the system. For trusted legal guidance, schedule a consultation today.

Sources:

irs.gov/newsroom/2024-tax-filing-season-set-for-january-29

irs.gov/newsroom/tax-time-guide

ssa.gov/employer/filingDeadlines.htm#:~:text=January%2031st%20is%20the%20deadline,2%20to%20employee(s).