The tax season is here. As you prepare to file your individual income tax returns ahead of the April 15
Here are 5 actions to consider.
When it comes to tax preparation, much of the work is locating the records you’ll need to reference when you file. To help the filing process go more smoothly, consider organizing these papers in advance, even as you receive them, preferably in a central location.
The IRS generally requires many tax documents, such as W-2 forms and 1099 forms, to be delivered to taxpayers by Jan. 31 (or Feb. 15 for securities accounts) via mail or electronic means. If you’re itemizing deductions, you’ll also want to track down your personal receipts for deductible expenses ahead of time, such as charitable contributions.
Advice spotlight:
Wait until you have all your tax documents to file your returns.
More complex investments may be subject to reclassification and amended tax information, or require Schedules K-1, which often arrive later than Forms 1099. As such, it may make sense to prepare a draft of your taxes, but wait to finalize and file them until later in the season.
See our web page on records for more advice and assistance.
If you’re expecting amended tax documents or foresee a situation where you won’t be able to meet the April 15 deadline, consider requesting an extension for your taxes. Depending on your situation, it may be better to obtain an extension and file the original return by the extended deadline, rather than file an amended tax return with the IRS at a later date. The request for extension does not delay your requirement to pay your tax obligation. All remaining 2024 taxes due are required to be paid at the time of filing the extension.
For ndividual tax returns, the extended due date is Oct. 15, Contact us to help you make this decision.
If you’re in a high-deductible health plan, you might qualify for a health savings account (HSA). Your contributions are pre-tax, which reduces your taxable income, and may never be taxed if used for qualified medical expenses. The HSA contribution deadline for the tax year is April 15. The maximum total annual contribution for HSAs for 2024 is $4,150 for an individual account and $8,300 for a family. Those ages 55+ can make additional annual catch-up contributions of $1,000.
Learn more: The triple tax benefits of health savings accounts
IRA contributions made between Jan. 1 and April 15, 2025, can be designated for either the prior year or current year. If you haven’t met your contribution limit for 2024, consider contributing to your traditional or Roth IRA by the April deadline. (You can do so in a lump sum if you’d like.) The maximum total annual contribution for traditional and Roth IRAs for 2024 is $7,000, or $8,000 if you are 50 or older.
Learn more: How maxing out your retirement accounts every year can pay off
It may seem early to start strategizing for 2025 taxes. But the sooner you start, the more flexibility you’ll have to pursue tax strategies that could benefit you.
As you prepare your 2024 taxes, here are a few considerations to keep in mind for 2025:
Learn more: Proactive tax planning
Smart tax strategies can help you keep more of your money and increase how much you save for financial goals. We can work with youl throughout the year to identify tax-saving opportunities that may benefit you.
Questions to discuss with us