Beat the tax deadline with these pre-season tips!

Tax season may not be circled on your calendar, but for American families, it is a critical time of the year. The potential for tax refunds is a significant reason behind this, with the average refund amounting to $3,167. This money can make a substantial difference in helping families achieve their financial goals.

While the IRS has yet to announce the official opening date for the 2024 tax season, it typically begins accepting returns from mid to late January. By preparing early, you can file as soon as possible, increasing the chances of receiving your tax refund sooner.

Preparing for tax season doesn’t have to be daunting if you have a system in place. There are three key components in getting ready for tax season:

1. Optimize Your Paycheck and Tax-Advantaged Accounts

   • It is essential to review your paycheck and ensure the correct amount is being withheld. Adjusting your withholding can prevent any surprises come tax season.
   • Major life events such as marriage, having children, or purchasing a home can impact your tax withholding, so it’s crucial to update your W-4 form as needed.
   • Take into account any capital gains from stock investments and adjust your withholding or make estimated tax payments accordingly.
   • Maximize the use of tax-advantaged accounts like 401(k)s, FSAs, HSAs, and education savings accounts to lower taxable income and save on taxes.

2. Organize Your Accounts and Documents

   • Keep your financial accounts organized and review them regularly to ensure accuracy.
   • Create a system for organizing financial documents, such as using color-coded folders to hold receipts and relevant paperwork.
   • Utilize tools like QuickBooks Self-Employed to track business finances and streamline tax preparation.
3. Make Plans for Filing Your Taxes
   • Gather all necessary forms, such as W-2s and 1099s, along with other financial documents to prepare your tax return.
   • Whether you choose to file your taxes yourself or enlist the help of TurboTax experts, ensure that every deduction and credit is maximized to get your largest possible refund.

In conclusion, with proper planning and organization, tax season can be less stressful and more rewarding financially. Take advantage of all available opportunities to optimize your finances and maximize your tax refund. Prepare early, stay organized, and make the most of tax season to achieve your financial goals.