Five ways to plan for tax season

1 Gather your tax filing documents

You can start by finding all your relevant documents and statements from the previous year, such as: 

• Investment accounts
• Mortgage statements
• Student loans
• Charitable donations

Keeping all your documents in one place makes pulling them together for your return easier at tax time. Take a few minutes to create a physical place in your home and a file on your computer where you can put tax-related documents when they come in. Maintaining good records throughout the year can make it faster for you to prepare your return—and help make sure you don’t miss any year-end tax deductions or credits.

2 Review last year’s return

Review your filing from last year to help you make sure you didn’t miss any documentation. You can note your income and tax deductions from the previous year and compare with this year’s information. If you don’t have a copy, you can request your old return from the IRS. 

3 Maximize account contributions

Taking advantage of any contributions you can make to retirement plans may help your tax situation. You can contribute to IRAs and HSAs until the tax deadline (April 15, 2024, for 2023) to help lower your taxable income. And you can start thinking ahead to next year’s return and consider maximizing the amount you contribute to your 401(k) or 403(b) this year to try to lower the taxes you’ll owe.

4 Identify any important changes

Did any major changes happen to you this year? You want to report events such as getting married, having a baby, or buying a home, as those can help lower the taxes you’ll owe. It’s also a good idea to think about any upcoming changes that may affect your future tax position.

5 Contact your tax professional

You may decide to file your return yourself or choose to use a tax professional. If you have any questions about your specific situation or your taxes are complicated, reaching out to a tax professional, usually a certified public accountant (CPA), can be helpful. Having a relationship with a CPA can help you determine your year-end tax deductions and create tax strategies for the future. 

Make your tax season less taxing

There’s a lot for you to do when preparing your tax return, including gathering tax filing documents, understanding your filing status, and finding a tax professional. By planning ahead, you can likely eliminate stress and avoid surprises. Your time spent planning will repay you with less time spent and fewer frustrations while filing your return.