The tax filing deadline is just around the corner (April 15th or October 15th if you ask for an extension) and this is a good time to start collecting documents and information that you need to prepare to file your 2024 taxes.
Here is a checklist of what documents you need to collect to file your 2024 taxes. CLICK HERE.
Keep in mind that while many of the tax documents are sent to you by financial institutions, employers etc. the onus of collecting documents, information and filing taxes lies with you. In addition, if you have taken tax planning steps such as contributing to a Health Savings Account or a back door Roth contribution then you may not receive any documents, but you will have to include this is your tax filing.
While most tax planning is done before the end of the year, i.e. December 31, 2025, there are a few things you can do right up to the tax filing deadline. For e.g.:
– You can make contributions to IRAs (Both traditional and Roth).
– You can make contributions to Solo 401k, Keogh or SEP.
– You can choose between itemized deductions or standard deduction depending on which is favorable to you.
– Self-employed individuals and businesses owners have flexibility to opt in or out of 179 and bonus depreciation, elect the method of home office deduction or for the use of a personal vehicle for business use.
– You can pay estimated taxes (Ideally by January 15) to avoid interest and penalties.
Tax planning is a year-round activity and sometimes done years in advance to save on lifetime taxes, but you need to prepare for filing appropriately to get the benefit.
Please let me know if you would like to discuss any of the above.