Get Ahead of Tax Season Stress: Your Year-End Checklist for Big Savings

Get Ready for Tax Season and Maximize Your Savings!

With the end of the year approaching, it’s time to get organized and optimize your tax-saving opportunities. Taking these steps now will help you save time, reduce stress, and make the most of potential deductions and credits. Here’s how to get started:

1. Gather Your Financial Documents

   • Download pay stubs and year-end statements (bank accounts, credit cards, mortgage, and student loans) and save them in a tax folder for easy access.

   • Pull up last year’s tax return and keep it with your other tax documents—it may come in handy for certain information.

     
     

2. Review Key Accounts and Spend Wisely

   • Check the balance on your Flexible Spending Account (FSA) and plan to use it before the deadline if it doesn’t carry over to the new year.

   • Go over potential deductions, such as medical and dental expenses, childcare, educational costs, and mortgage interest, and ensure you’re tracking these.

     
     

3. Account for Life and Income Changes

   • Assess any major changes that may affect your tax situation, like income increases, bonuses, stock options, or promotions.

   • Life changes, like buying a home, having a baby, or getting married, may also affect your taxes, so reach out to a tax professional if these apply.

     
     

4. Make Estimated Tax Payments

   • If you’re self-employed, a freelancer, or receive income without withholding, make your estimated tax payment by January 15, 2025, to avoid penalties.

   • Review this year’s income and determine if an additional payment is necessary to cover unexpected income increases.

     
     

5. Contribute to Tax-Advantaged Accounts

   • Contact HR to see if additional 401(k) contributions are possible by December 31, maximizing your retirement savings.

   • Consider fully funding your IRA or Health Savings Account (HSA) by April 15, 2025, to benefit from added tax deductions.

     
     

6. Make Charitable Contributions

   • Decide how much you’d like to donate before year-end and choose a qualified 501(c)(3) non-profit.

   • Your donations must be completed by December 31 to qualify, and setting up recurring donations for 2024 can be a great way to plan for ongoing charitable support.

     
     

Get proactive and set yourself up for tax success! Book a year-end planning session at JS Tax Corporation for tailored guidance. Let’s review your financial landscape and make the most of every tax advantage available to you. Don’t miss out—schedule your session today to feel confident heading into tax season!