By Skyler McCool
Manager, Tax Services
Email Skyler
As with any holiday or annual event, it’s easy to fall prey to procrastinating preparation for Tax Day. Make 2025 the year you give up that habit!
Here are some tips for navigating tax season in a way that’s, well, less taxing …
Start ASAP. We recommend you organize your data and keep a digital file or old-fashioned envelope as a central gathering spot for all your tax-related documents and receipts. Starting early will also give you time to consult with a tax professional in order to make sure there’s nothing you overlooked. The IRS strongly recommends seeking professional assistance. In fact, more than half of taxpayers turn to a tax professional for help filing a tax return.
Getting your tax information to your accountant in late February or early March will provide adequate time for preparation in advance of the April 15 income tax return deadline. This also allows time to consider IRA contributions and other tax saving matters that may be available to you.
Keep tax law changes in mind. Given that most taxpayers do not understand the IRS code, let alone interpret it, a professional can deliver better value, if utilized properly.
Take advantage of retirement plans. Increase your personal contribution by at least one percent per year to reach your savings goal and experience the benefits of your employer’s matching contributions.
With the creation of the new Starter K plan, employees can contribute a maximum of $6,000, with a $1,000 catch-up for those 50 or over. Additionally, the required minimum distribution (RMD) age has been increased to 73. If you turned 73 in 2024, you have until April 1 of this year to take your 2024 RMD (your first required distribution) from your retirement accounts.
See our 2025 Tax Pocket Guide to learn more about the latest contribution plan amendments.
Save for tax season. Segregate your money on a regular basis to fund tax payments. A good way to do this is to set up an automatic transfer to your “tax savings” account. For taxpayers who are required to make quarterly estimated tax payments, segregating those funds into a separate bank account — maybe even at a different bank — will give you peace of mind when it comes time to remit to the federal and state governments that the funds are there, minimizing the risk of penalties and interest.
Remember: Even if you choose to file an extension, you are still required to pay any taxes you may owe by the April 15 deadline.
If we can assist you further this tax season, please contact us at 317-608-6699 or email Skyler.