Let's talk about something most people avoid like a skunk on the trail: taxes. Most people treat tax season like a last-minute sprint, frantically gathering documents and hoping for the best. Let’s change that this year by being proactive now to make things easier on you next spring.
Build your Document Folder- Paystubs
- Account Statements (bank accounts, mortgages, student loans, investment accounts)
- Charitable Donations
- Last Year’s Taxes
- Medical
- Child Care
- Educational
- Mortgage Interest
- Charitable
Check the balance of any FSA you have and see if you need to spend the remainder before year end.
Think about any big changes this year and share with your Tax Pro.
- Big Income changes or bonuses
- Stock Options Vested
- Expected income to increase next year?
- Add a member of the family, purchase a home, or get married?
Tax-Advantaged Accounts - If you haven’t and have it in your budget look to max out your 401(k) and/or HSA if available.
Donate to causes important to you.
- Based on your budget decide how much you want to give at year end.
- Choose non-profits that align with your values and priorities, that will make the impact that you care about. This is a great time to get the kids involved in helping making these decisions too.
- Remember donations are just in cash, look to see if the best option is appreciated stock for example.
And if you are getting to that point where the complexity of filing your taxes starts to feel a bit much, reach out to a Tax Professional and get the help you need. Don’t hesitate to ask colleagues, family, and friends for a referral to a good tax professional if you need one. Either way, come early spring of 2025 you’ll be ready to file taxes and you can side step any frantic rush to get things filed.
Enjoy the rest of the holiday season!