As we end January 2025, tax season is fast approaching. Getting a head start on preparing your taxes can save you time, money, and stress. Whether you’re filing on your own or working with a financial professional, being proactive and organized can help ensure you get the maximum refund or reduce your tax liability. Here are some top tips to prepare for tax season in 2025.

1. Stay Up to Date on Tax Law and Deduction Changes

Tax laws are constantly evolving, and 2025 may bring some key tax updates. There may be new deductions, credits, or changes to income brackets that could impact your filing. Make sure you’re aware of any modifications to tax laws that could affect you. For instance, the child tax credit, energy-efficient home credits, and changes to standard deductions are all worth paying attention to. Research or consult with a tax professional to ensure you’re taking advantage of any changes that benefit you.

2. Organize Your Financial Documents

Gathering all the necessary documents needed for tax filing can be time-consuming. Get ahead of the game by organizing and collecting your financial records now. Some key documents to gather include:

  • W-2s from your employer
  • 1099s for freelance or contract work
  • Mortgage interest statements (Form 1098)
  • Records of other income such as dividends, interest, or rental income
  • Receipts for deductible expenses, such as medical costs, charitable donations, and business expenses
  • Records of any tax payments made throughout the year (like estimated quarterly payments)

Having these documents ready in advance will help you avoid last-minute scrambling and prevent you from missing any deductions or credits you’re entitled to.

3. Review Your Withholding and Estimated Payments

If you consistently receive a large refund or owe a substantial amount in taxes, it might be a sign that your withholdings or estimated payments are off. For those employed, review your W-4 form to ensure the correct amount of tax is being withheld from your paycheck. You can adjust your withholding at any time during the year if you think it’s necessary. If you’re self-employed, make sure you’ve been making estimated quarterly tax payments to avoid penalties come tax season.

4. Take Advantage of Tax-Advantaged Accounts

Maximizing contributions to tax-advantaged accounts can significantly reduce your taxable income and potentially increase your refund. For 2025, check if you’ve contributed enough to your retirement accounts like a 401(k) or IRA, and if not, you still have time to make those contributions. You can also contribute to health savings accounts (HSAs) or flexible spending accounts (FSAs), if applicable. These contributions not only reduce your tax bill but also help you build long-term savings.

5. Be Aware of Important Deadlines

Tax season typically begins in late January, and the deadline to file your taxes is usually April 15. However, keep in mind that if you’re unable to meet the deadline, you can file for an extension. This will give you more time to submit your tax return, but it doesn’t extend the time to pay any taxes owed. Be sure to plan ahead so you don’t face any penalties for late payments.

6. Consider Working with a Tax Professional

While it’s tempting to file taxes on your own, especially with online tools, working with a tax professional can provide peace of mind and save you money in the long run. Tax professionals are familiar with the latest tax laws and can help you find deductions and credits you may have missed. They can also guide you through complex situations like self-employment income, investments, or owning a business.

If you choose to file on your own, make sure you use reputable tax software that can help guide you through the process, especially if your situation is straightforward.

DeSantis, Kiefer, Shall & Sarcone Can Help You Prepare for Tax Season

Tax season doesn’t have to be stressful if you take the right steps early on. Staying organized, understanding any changes in tax laws, and reviewing your financial situation can help make the process smoother. At DeSantis, Kiefer, Shall & Sarcone, our experts can help you prepare to file taxes and advise you on making the most of tax deductions and post-tax income. By starting now, you’ll be able to prepare for tax season without stress and ensure you get the most favorable outcome possible.