January officially launches the tax season. As those tax forms start coming in, here are some tips to help you organize all your records to make filing your tax return efficient and with the least amount of potential stress:

Tips to Organize Your Tax Records

1. Stay organized. Designate a specific spot to keep everything together as you gather your documents. Consider scanning the documents to store them digitally on your computer or taking photos with your phone as a backup. Missing paperwork is one of the most common reasons for delays in filing tax returns.
2. Gather your tax documents. Create a list of expected tax forms and mark them off as received. This includes W-2s, 1099s, K-1s, and other statements from your employer, business, brokers, banks, or other sources. If you notice any errors, promptly contact the issuer to request corrected copies.
3. Know business tax deadlines. If you’re involved in a partnership or an S corporation, remember that business tax returns are due by March 17th. For calendar-year C corporations, the deadline is April 15th.
4. Mark important deadlines. Make and keep your tax filing appointment in mind. While April 15 is the standard filing deadline, your deadline could vary depending on business returns and your tax appointment. But also keep April 15th in mind—it’s the deadline for filing your 2024 individual income tax return. It is also the due date for submitting gift tax returns, contributing to a Roth or traditional IRA for 2024, and paying the first installment of 2025 individual estimated taxes. Set reminders in your calendar to stay on track.
5. Review your mileage logs. If you claim mileage for business, moving, medical, or charitable purposes, ensure your logs are complete, accurate, and up-to-date. Review and total them to avoid discrepancies.
6. Check your child’s tax requirements. Your child might need to file a 2024 income tax return. Typically, a return is required if their earned income exceeds $14,600 or their investment income (e.g., dividends, interest, or capital gains) exceeds $1,300.
7. Maximize IRA and HSA contributions. You can still make contributions for 2024 to your IRA or HSA until April 15th or the date you file your return, whichever is earlier. The 2024 IRA contribution limit is $7,000 (or $8,000 if you’re 50 or older). For HSAs, the maximum is $4,150 for single taxpayers and $8,300 for families.
8. Plan for an extension if needed. You must calculate your estimated 2024 tax liability if you anticipate needing an extension. Even with an extension, you must pay any taxes owed by April 15th to avoid penalties and interest.

Time to Prepare Your Taxes

Following these steps simplifies the tax filing process and avoids unnecessary stress as deadlines approach. Contact our RRBB advisors if you have any questions or are ready to take the next step.