You may not be thinking about filing your taxes in September (with tax season still being months away), but now is the time to start preparing. Fall is the perfect time to get everything together, whether you are filing independently or with an accountant. Stephanie Atkins, senior manager at Herbein in Wyomissing, shares a few tips to make tax time less stressful.
IF YOU’RE FILING YOUR OWN TAXES…
1. ASK YOURSELF IF FILING INDEPENDENTLY IS TRULY THE BEST CHOICE FOR YOU.
After all, it can be intimidating. Sometimes taking the hand of a professional may be what you need to feel confident you are doing everything correctly. If you have experienced no major changes in your life this past year, then you are probably good to go. However, if you have seen a job change, got married, have had children, received an inheritance, became selfemployed, participated in any stock auctions or experienced any other major life change, it would be a good idea to give a professional accountant a call.
2. KNOW YOUR DATES.
You’ll start receiving tax forms at the end of January (for the subsequent tax year). Tax returns are due April 15, 2025. You can apply for a six-month extension to file your taxes, but it is not an extension to pay your taxes. Should the extension be approved, your tax returns would be due 1. October 15, 2025.
3. CHECK IN ON YOUR FEDERAL INCOME TAX
Most individuals fill out their W-4 form once when starting a new job and rarely look at it again. But it is a good idea to check in on your withholdings annually to make sure you are having enough federal tax money withheld. The IRS has a calculator to help. To access this resource visit irs.gov/individuals/taxwithholdingestimator.
TIPS FOR FILING WITH THE HELP OF AN ACCOUNTANT…
1. ESTABLISH A RELATIONSHIP WITH AN ACCOUNTANT SOONER RATHER THAN LATER.
If you haven't used an accountant in the past, Stephanie warns that one may not be able to assist you if they are approached well into tax season. “I would suggest that people reach out to an accountant or an accounting firm sooner rather than later. Most likely if you reach out in February or March, they might not be able to file your taxes on time,” she says.
2. ACCOUNTANTS AREN’T JUST AROUND DURING TAX SEASON.
If you have a major life change that will significantly impact your upcoming taxes or you just want advice to prepare, reaching out to your accountant now is a great idea. Meeting with your accountant to make a plan in the last half of the year is a great way to stay on top of your taxes.
3. “WE DON’T KNOW THE THINGS YOU DON’T TELL US.”
“I love when a client has a list of things they did throughout the year,” Stephanie says. Letting your accountant know exactly what is going on in your life is your responsibility. If you have multiple jobs, you have multiple W-2 forms that need to be completed. Inventory your assets. Understand where you have assets that may require a taxable event such as investment accounts, IRAs and bank accounts. Keep a list of any charitable contributions you made, loans you have and possible tax credits you may qualify for so you don’t miss any opportunities to make deductions.”
