Key Steps to Prepare for Upcoming Tax Deadlines

As tax deadlines approach, being proactive can save you stress, money, and potential penalties. Here are six essential steps to help you prepare.

Mark Important Deadlines on Your Calendar

The IRS has strict filing dates, with the primary deadline typically falling on April 15. If you need an extension, you must file for one before the deadline to avoid late fees.

Gather All Necessary Documents

Make sure you have all tax-related documents, including W-2s, 1099s, bank statements, investment records, and receipts for deductible expenses. Staying organized can prevent filing delays and mistakes.

Maximize Deductions and Credits

Review tax deductions such as mortgage interest, student loan interest, and medical expenses. Additionally, take advantage of credits like the Earned Income Tax Credit (EITC) and Child Tax Credit if eligible.

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Consider Contributions to Retirement Accounts

Contributions to IRAs and HSAs (Health Savings Accounts) may be tax-deductible and can lower your taxable income. Check eligibility before making last-minute contributions.

Decide Whether to DIY or Hire a Professional

If your tax situation is simple, using tax software may be sufficient. However, for complex returns involving self-employment, rental income, or investments, hiring a tax professional can help you maximize savings and avoid errors.

File Early to Avoid Last-Minute Stress

Filing well before the deadline gives you time to correct errors and ensures you receive any refunds sooner. It also reduces the risk of tax identity theft, where fraudsters file under your name to claim your refund.

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Preparing for tax deadlines in advance can help you avoid penalties, maximize deductions, and reduce stress. Get organized now so you can file with confidence and make the most of your tax return.