6 Ways To Get Ready for Tax Season Next Year
Written by
Angela Mae
Edited by
Jenna Klaverweiden
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Tax Day is April 15, so unless you requested an extension, chances are you’ve already filed your taxes this year. But while you might want to put the whole tax season behind you, now’s a good time to prepare for next year.
Here’s how to get ahead of your taxes, cut down on possible stress and possibly get your refund sooner.
Also see six ways to use your tax refund to make money.
Figure Out Your Withholding and Estimated Taxes
Figuring out your tax withholding now will save you headache — and a potential tax bill — next year. The same goes for your estimated taxes if you expect to owe.
“Get your withholding and Estimated Taxes set [in] place to make sure you will not owe for 2025,” said Hubert Johnson, a tax attorney at Guardian Tax Law. “Additional tax payments and estimated taxes are due quarterly, and there are penalties for not paying enough taxes quarterly.”
Plan To Lower Your Tax Bill
Owing is never fun, so if you’re worried you’re going to have a large tax bill next year, start planning around that now.
“If you’re employed, give your employer a new W4 — fill it out completely, paying special attention to the section for additional jobs and/or your spouse’s income,” said Kari Brummond, an accountant and IRS enrolled agent at TaxCure LLC. “If you’re self-employed, talk with your accountant about how you can reduce your tax bill for next year.”
Even something as simple as changing your withholding or contributing to retirement accounts could help lower your tax bill.
Get Your Documents Together Early
You might have to wait on certain tax documents until January or even February. But don’t let that stop you from getting your other documents together in advance.
“Start a digital folder now for receipts, income docs and deductible expenses,” said Paul Miller, CPA, founder of Miller & Company. “Your future self will thank you.”
Set Up Bookkeeping
Are you self-employed or a business owner? If so, get your bookkeeping set up now.
“If you’re not doing bookkeeping for your business, set up bookkeeping software so that you’re organized for next year — if you’re filing based on a stack of bank statements or receipts, you’re likely paying more for tax prep, and you’re probably missing tax deductions,” Brummond said.
You can use a bookkeeping software like QuickBooks or Xero if you want to simplify this.
Maximize Retirement Account Contributions
Maxing out your retirement accounts isn’t just a good idea for your future financial stability. You can also get a tax break. For 2025, the IRA contribution limit is $7,000 ($8,000 if you’re 50 or older). The limit for 401(k) accounts is $23,500.
Don’t try to max out these accounts at the last minute. Instead, make smaller contributions throughout the year starting now.
“For instance, if you’re eligible to invest in an IRA, see if you can set aside money weekly to put in — contributing about $138 per week will help you reach the $7,000 maximum for the year,” Brummond said.
Look for Tax Breaks
There are a lot of tax breaks you might not know about. This includes tax deductions and credits for major life events like marriage, divorce, birth of a child, or income or job changes.
Some common tax breaks include the Earned Income Tax Credit, Child Tax Credit and education credits.
Eligibility requirements are generally based on things like income, filing status and the number of dependents you have. Now’s a good time to look over these tax breaks and see whether you’re eligible.
While you’re at it, verify your filing status. You could get a larger standard deduction if you file as head of household or married filing jointly (but you’ll of course need to qualify).
More From GoBankingRates
