Tax season is here again! I know—it sneaks up on us every year, right? Whether you’re crossing your fingers for a nice refund or bracing yourself for the bill, let’s make sure you go into this season feeling confident and prepared. Grab a cup of coffee (or tea), and let’s chat about what you need to know this year to make tax time as painless as possible.
1. Keep Up With Tax Law Changes
Every year, the IRS shakes things up a bit, and 2024 is no different. There are updates to tax brackets, standard deductions, and credits like the Child Tax Credit. Plus, some of those COVID-era tax perks have gone away. Stay in the know so you don’t leave money on the table. (You can always check out the latest updates straight from the source on the IRS website.)
2. Don’t Miss Out on Deductions
Listen, I don’t want you paying a dollar more than necessary. So many people overlook deductions that could save them big money! If you’re self-employed, you might be able to deduct home office expenses, business purchases, or even your retirement contributions. Homeowners—don’t forget about mortgage interest deductions! And if you gave to charity, make sure to claim those donations. Every little bit helps!
3. Stash Some Cash in Your Retirement Account
One of the easiest ways to shrink your tax bill? Put money into a 401(k) or IRA. And get this—you can still make contributions before the April 15 deadline for the previous year! It’s a win-win: less taxable income now, and more savings for your future self.
4. Think Twice About Your Tax Refund
Getting a big refund feels great, but here’s the thing—if you’re getting thousands back, you probably overpaid in taxes throughout the year. That’s money you could’ve been using for savings, investing, or tackling debt. Consider adjusting your withholdings so you have more money in each paycheck instead of giving Uncle Sam an interest-free loan.
5. Avoid Common Filing Mistakes
Nobody wants a delayed refund or an audit (yikes!), so let’s get it right the first time. Double-check your Social Security number, make sure your bank info is correct, and keep track of all your income sources. If you’re claiming deductions, have receipts and records to back it up. A little organization now saves a lot of headaches later.
6. Know When to Call in a Pro
If your tax situation is simple, DIY tax software works great. But if you’re self-employed, own rental properties, or have had big life changes this year, a tax pro might be worth every penny. They can spot deductions you didn’t even know existed and help you stay on the right side of the IRS.
Final Thoughts
Look, taxes aren’t the most exciting thing in the world (unless you’re an accountant, in which case—bless you!). But with a little prep and the right approach, you can make sure you’re getting the best outcome possible. File early, stay organized, and keep more of your hard-earned cash where it belongs—in your wallet!