Over the weekend I started gathering information for this year’s tax return. It takes a lot of time to get all the information together, and it would be easy to miss or forget something. Thus, I thought it might be helpful to put together an article on things to keep in mind as the tax deadline approaches.

Know Your Filing Deadline

The standard tax deadline for most filers is April 15, but if it falls on a weekend or holiday, the deadline may be extended. This year the deadline is on a Tuesday, so there won’t be any extra time.

If you do need more time, you can file for an extension, which grants you six additional months (typically until October 15) to submit your return. However, an extension does not delay the payment of taxes owed, so it’s crucial to estimate and pay any amount due by the original deadline to avoid penalties and interest.

Gather All Necessary Documents

Before you start filing, ensure you have all relevant tax documents, such as:

• W-2 Forms (for employees)
• 1099 Forms (for independent contractors, investors, and side gigs)
• Mortgage Interest Statement (Form 1098)
• Student Loan Interest Statements
• Retirement Account Contributions (Form 5498)
• Investment Income (1099-DIV, 1099-INT, 1099-B)
• Charitable Contribution Receipts
• Business Expense Records (for self-employed individuals)
• Health Insurance Statements (Form 1095-A, B, or C)

Having a checklist ensures that you don’t miss important deductions or income sources, which could either reduce your tax burden or prevent an IRS audit. Personally, I keep a spreadsheet where I tally income and expenses. That helps me keep track of everything, and by comparing to last year’s spreadsheet, it minimizes the chance I will forget anything.

Maximize Retirement Contributions

One of the easiest ways to reduce taxable income is by contributing to a retirement account. You can contribute to a Traditional IRA up until the tax deadline, and in some cases, those contributions may be deductible. If you’re self-employed, consider contributing to a SEP IRA or Solo 401(k) to maximize tax-deferred savings.

Take Advantage of Tax Deductions and Credits

Deductions and credits can significantly reduce your tax bill, so it’s important to explore all options available to you. Some key deductions and credits include:

• Standard Deduction vs. Itemizing – Decide whether taking the standard deduction ($14,600 for single filers, $29,200 for married filing jointly in 2024) or itemizing expenses will save you more.
• Child Tax Credit – Eligible parents can claim up to $2,000 per qualifying child.
• Education Tax Credits – The Lifetime Learning Credit and American Opportunity Credit provide tax breaks for education expenses.
• Energy-Efficient Home Credits – Homeowners may qualify for tax credits for installing solar panels, energy-efficient windows, and HVAC systems.
• Medical Expense Deductions – If your medical expenses exceed 7.5% of your adjusted gross income, you may be able to deduct them if you itemize.

Avoid Common Tax Mistakes

Errors on your tax return can lead to delays, audits, or penalties. Common mistakes to watch for include:

• Incorrect Social Security Numbers
• Math Errors
• Missing Income Sources (forgetting a 1099, for example)
• Banking Errors (incorrect direct deposit information for refunds)
• Forgetting to Sign and Date Your Return

Using tax software or working with a professional can help catch these errors before you file.

Consider Hiring a Tax Professional

While many individuals can file taxes on their own using online software, more complex situations—such as self-employment, real estate investments, or international income—may warrant professional help. A Certified Public Accountant (CPA) or Enrolled Agent (EA) can help ensure compliance while maximizing tax benefits.

Plan for Your Tax Refund or Payment

If you’re expecting a tax refund, consider putting it toward savings, debt repayment, or investments rather than unnecessary spending. On the other hand, if you owe taxes, make sure you have the funds available to avoid penalties and interest. If paying in full isn’t possible, the IRS offers installment plans to help manage payments over time.

Stay Prepared for Next Year

Good tax planning doesn’t end when you file. Take steps now to make next year’s filing easier:

• Adjust your W-4 withholding if you owed a large amount or received an excessive refund.
• Track expenses throughout the year if you plan to itemize deductions.
• Set up quarterly estimated tax payments if you’re self-employed.

Final Thoughts

With the tax deadline approaching, taking a proactive approach can help ensure a smooth filing experience while maximizing your potential tax savings. Whether you’re organizing documents, making last-minute contributions, or consulting a tax professional, careful planning can make tax season less stressful and more financially rewarding.

By following these strategies, you’ll be well-prepared not just for this year’s taxes but for future filings as well.