Tax season is here, and whether you're expecting a refund or trying to minimize your tax bill and what you owe, it's important to be prepared, organized, and strategic. Filing taxes can be overwhelming 🤮, but with the right approach, you can avoid stress and potentially save money.
Here are 10 tax tips to help you get through this tax season smoothly and maximize your return! ( ADVICE GIVEN TO ME FROM A TAX PREPARER THAT WORKS FOR THE I.R.S)
1️⃣ Get Organized 📂
Before you start filing, make sure you have all your documents. This includes:
✔️ W-2s (for employees)
✔️ 1099s (for freelancers, gig workers, or side hustles)
✔️ Mortgage interest statements
✔️ Student loan interest statements
✔️ Investment earnings or losses
✔️ Receipts for deductible expenses (charitable donations, medical expenses, business expenses, etc.)
✔️Interest from HYSA high yield savings accounts
Staying organized prevents last-minute stress and helps make sure you don’t miss anything.
2️⃣ Know Your Filing Status 👥
Your filing status affects your tax bracket, standard deduction, and eligibility for certain credits. The five statuses are:
✔️Single (for individuals)
✔️ Married Filing Jointly (if you and your spouse want to file together)
✔️ Married Filing Separately (if you and your spouse want to file separately)
✔️Head of Household (for single parents or those supporting dependents)
✔️ Qualifying Widow(er) (if your spouse passed away in the last two years and you have dependents)
Choosing the right status can impact how much you owe or get back, so double-check before filing! CLICK HERE FOR MORE INFORMATION
3️⃣ Take Advantage of Tax Deductions & Credits 💰
Deductions and credits can help lower your taxable income and reduce your tax bill.
🔹Some Tax Deductions:
✔️ Student loan interest
✔️ Mortgage interest
✔️ Medical expenses (if they exceed a certain % of income)
✔️ State & local taxes
✔️ Business expenses (for self-employed individuals)
🔹 Tax Credits to Check For:
✔️ Child Tax Credit – For parents
✔️ Earned Income Tax Credit (EITC) – Helps lower-income workers
✔️ American Opportunity Credit – For college students or parents paying tuition
✔️ Lifetime Learning Credit – For continuing education expenses
Deductions lower your taxable income. Credits reduce the amount of tax you owe!
4️⃣ Max Out Retirement Contributions ⏳
If you contribute to an IRA or 401(k), you may qualify for tax breaks. Contributions to a traditional IRA or 401(k) are tax-deductible, lowering your taxable income.
🔹 2024 Contribution Limits:
-
401(k): $23,000 ($30,500 if you're 50+)
-
Traditional IRA: $7,000 ($8,000 if you're 50+)
If you haven’t maxed out your IRA contributions yet, you can still contribute for 2023 until April 15, 2024!
5️⃣ Side Hustle Taxes 🚗
If you drive for Uber, sell on Etsy, create content, or have a side hustle, you must report that income.
✅ Save at least 30% of your side hustle income for taxes.
✅ Track expenses (home office, mileage, software subscriptions, etc.).
✅ If you make $600+ from any one source, they may send you a 1099 Be sure to have that as a part of your documentation
Side hustles and extra money is great. But make sure you keep your business finances and documents organized, you do not want drama with the IRS.😟
6️⃣ File for Free OPTIONS 🆓
Did you know you may be able to file for free?
The IRS did have a free filing option for certain states; however, that is being rolled back. Here are some sites that still offer free filing options for specific tax situations. Take a look and see if any applies to you and your situation.
✅ TurboTax Free Edition
✅ H&R Block Free File
✅ Cash App Taxes
✅ TaxSlayer Simply Free
7️⃣ Avoid Common Tax Mistakes ❌
Simple errors can delay your refund or even trigger an audit. Here’s what to avoid:
🚫 Misspelling your name or entering the wrong Social Security number
🚫 Forgetting to report all income (especially 1099 earnings!)
🚫 Not signing your tax return
🚫 Filing with outdated bank account info for direct deposit
Double-check everything before you submit!
8️⃣ E-File & Opt for Direct Deposit 💻
Filing electronically and choosing direct deposit is the fastest way to get your refund.
📌 IRS E-File Benefits:
✔️ Faster refunds (in as little as 2-3 weeks!)
✔️ Fewer errors compared to paper filing
✔️ Secure processing
If you mail a paper return, it can take 6-8 weeks to process—so e-file if you can!
9️⃣ Consider Hiring a Tax Pro If Needed 🏢
If you have complex taxes (multiple income sources, business income, large deductions), it may be worth hiring a CPA or tax preparer.
✔️ Who Should Consider a Tax Professional?
✅ Business owners
✅ Real estate investors
✅ High-income earners
✅ People with major life changes (new home, divorce, inheritance)
Sometimes, a tax pro can find deductions you may have missed, saving you more than their fee!
🔟 Plan Ahead for Next Year! 📆
Taxes don’t have to be stressful if you plan ahead. Set up good habits now to make next year’s filing even easier!
✅ Adjust your W-4 if you owed taxes or got too big of a refund.
✅ Track deductible expenses throughout the year (use an app or spreadsheet).
✅ Start saving for taxes if you’re self-employed or have a side hustle
✅ Mark tax deadlines in your calendar so you don’t miss them!
Tax season doesn’t have to be stressful, although we all expect it to be!
🔑 KEY TAKEAWAYS:
staying organized, knowing your deductions, and filing early, you can REDUCE THE HEADACHE and possibly get maximize your refund.
Which tax tip helped you most? Comment below or share this post with someone who needs it!
👉 Need a custom budget plan to go along with your tax refund? Coming Soon!! Budget Consultation Service by PaperByMoe!
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