2025 is here and so is the start of tax season. It’s time to start preparing your tax reports so you’re ready to file by April. Why would you want to start planning your taxes in January? Early planning doesn’t have to take long and can make filing your taxes take much less time! Additionally, this is a good chance to make sure nothing is missing. Nothing is worse than filing your taxes in April only to realize you’re missing several important forms.
Let’s go over some ways you can get organized and stay ahead of your taxes this winter.
☑️ IRS Online Account
An IRS Online Account is a great way to efficiently access your tax information. If you do not already have an account set up, be sure to do so to keep track of your most recently filed return along with other important information. If you do already have an account, take the time to view what your owed taxes, payments, and payment plans are. With your account, you can also make payments and apply for payment plans.
☑️ Organize
To avoid making any filing errors, it’s crucial to get organized ahead of time. The list below comes straight from the IRS, so be sure you have all of these records prepared before you file:
- Forms W-2 from your employer(s)
- Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions
- Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy
- Form 1099-INT if you were paid interest
- Other income documents and records of digital asset transactions
- Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
- IRS or other agency letters
- CP01A Notice with your new Identity Protection PIN
You may not have some of these documents as early as January, but checking on them will help ensure you are properly prepared in April.
☑️ Check Your Withholding
Altering the amount you withhold might help you avoid a hefty tax bill or possibly help you keep more money each time you get paid. Changes in your life, whether that be a divorce, new child, or second job, could also be factors that influence your withholding. The IRS has a Tax Withholding Estimator to help you determine how much you should be withholding.
If this tax season adds too much to your plate, let A Mazzo Accounting take care of it for you! Be certain that you’re filing correctly and avoid penalties by hiring a trusted professional like Tony. I’m sure to get the job done right for you.