Tax Season is Over, Three Tips to Make Next Year’s Easier!

I think it is fair to say that the longer days and nicer weather have mentally moved my family into summer mode whether I am ready for it or not. I’m still just trying to get through May (aka Maycember for all of my fellow parents out there).

“Maycember – a term that describes the chaos of the month of May, which parents with school-aged children often find to be as busy as December, but without the joy of cookies.”– Holderness Family

As we get ready to say goodbye to the school year, tax season is also in our rearview mirror. With tax season behind us, now is the perfect time to reflect on the experience and prepare for a smoother journey next year rather than waiting until the last minute to take action. With some proactive steps and simple processes, you can minimize stress, maximize savings, and set yourself up for success.

Strategies for Minimizing Tax Liability

Three steps to optimize and minimize your tax liability:

1. Reflect on Past Deductions and Credits

  • Take a moment to review any tax deductions and credits you claimed this year. Identify areas where you may have missed out or could optimize further.
  • Keep abreast of changes in tax laws and regulations to capitalize on new deductions or credits that may benefit you next year.

2. Strengthen Record-Keeping Practices

  • Evaluate your record-keeping system from this tax season. Identify any inefficiencies or areas for improvement.
  • Consider leveraging technology solutions or outsourcing tasks to streamline record-keeping and maintain organization throughout the year. Clients of Meridian can utilize their Vault in our client portal to upload records and tax-related documents.
  • With today being Give Local Piedmont, it’s a great reminder to continuously track your charitable giving throughout the year whether it is through using an old-school spreadsheet or a software/app. Turbo Tax has a tracking solution and ItsDeductible on the App Store are two great ways to easily track your charitable giving.

3. Plan for Income Management

  • Assess your income sources and explore opportunities to adjust timing or structure to minimize tax liability.
  • Consult with a financial advisor and/or tax professional to develop a tailored income management strategy aligned with your financial goals and tax objectives. Your financial advisor at Meridian can work with you and your CPA to start developing these strategies together!
woman writing with a calculator and laptop


Record Keeping and Organization

Build a process for review, organization, and leverage new technologies:

1. Establish a Post-Tax Season Review

  • Schedule a post-tax season review with your account manager to assess the effectiveness of your record-keeping practices and identify areas for enhancement.
  • Implement any necessary changes or updates to your record-keeping system based on lessons learned from this tax season.

2. Utilize Technology Tools

  • Leverage accounting software, expense-tracking apps, and cloud storage solutions to digitize and centralize your financial records.
  • Automate recurring tasks such as expense categorization and receipt capture to save time and minimize manual effort.

3. Maintain Consistency

  • Cultivate a habit of regular record-keeping and reconciliation to ensure the accuracy and completeness of financial data.
  • Allocate dedicated time each month to organize and update your records, reducing the burden of tax preparation when next year’s tax season arrives.

The Benefits of Early Tax Planning

Start planning even earlier and enjoy a few great benefits.

1. Kickstart Next Year’s Planning Now

  • Take advantage of the momentum from this tax season to jumpstart your tax planning for next year. Below is a timeline of important deadlines and tax-related dates for 2024.
  • Proactively identify potential tax-saving opportunities and develop a comprehensive plan to optimize your tax situation well in advance.

2. Enjoy Peace of Mind

  • By tackling tax planning early, you can alleviate the stress and anxiety associated with last-minute tax preparation.
  • Enjoy peace of mind knowing that you have ample time to address any complexities or uncertainties that may arise before Tax Day 2025.

3. Empower Financial Decision-Making

  • Early tax planning empowers you to make informed financial decisions throughout the year, aligning your actions with your tax goals and objectives.
  • Leverage tax-efficient strategies to maximize savings, optimize investments, and achieve your long-term financial aspirations.

We’re here to help you get ready for easier tax seasons ahead! We encourage you to start planning today to reap the benefits tomorrow. Reach out anytime to get the conversation started.

Categories : Money IQ

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