Tax Season Playbook

We thought it would be fun to take a page out of football’s playbook and provide you with a step-by-step tax filing process.

Tax season can sometimes feel like navigating a complex game, but with the right strategy, you can come out on top. So let’s huddle up for success! Take a look below at key steps to take now that tax season is underway.

First Quarter: Gather Your Documents

It’s kick-off time, and that means you need to assemble all the necessary documents and get them over to us. Think of it as your “tax tailgate party.” Here’s what you’ll need to gather:

• W-2 Forms: These are provided by your employer and show your income for the year.
• 1099 Forms: If you’re self-employed or have freelance income, you’ll receive these.
• Bank Statements: Gather records of your interest, dividends, and other financial transactions.
• Receipts: Keep track of expenses like medical bills, business expenses, and charitable donations.
• Mortgage Interest Statement: If you own a home, you’ll need this to claim deductions.
• Records of Investments: Include documents related to stocks, bonds, and other investments.
• Previous Year’s Return: Your last year’s tax return can be a helpful reference.

Second Quarter: Tackle Deductions and Credits

Just as a good defense can prevent the opposing team from scoring, claiming deductions and credits can reduce your taxable income.

Here are some common ones we look at when preparing returns:

• Standard Deduction: This is a fixed deduction amount based on your filing status. Most people use this, but we may recommend itemizing deductions if you have significant expenses.
• Itemized Deductions: These include expenses like mortgage interest, medical bills, state and local taxes, and charitable contributions. You’ll choose either the standard deduction or itemized deductions, depending on which is more advantageous.
• Tax Credits: Credits like the Child Tax Credit or Earned Income Tax Credit can significantly reduce your tax bill. It’s like a scoring play in football — you want to maximize your points.

Halftime: Review Your Game Plan

At halftime, teams review their strategies and make adjustments. While we’re focused on filing your return, you may want to take this time to look at your overall tax game plan, including opportunities to optimize your tax position for the next tax year:

• Retirement Contributions: Consider contributing to retirement accounts like a 401(k) or IRA. This not only secures your financial future but can also reduce your taxable income.
• Health Savings Account (HSA): If you have a high-deductible health plan, contributing to an HSA can provide tax benefits while covering medical expenses.
• Investment Strategy: Consult with a financial advisor to make tax-efficient investment decisions.
• Education Expenses: Explore tax benefits related to education expenses, such as the American Opportunity Credit or the Lifetime Learning Credit.

Once you’ve considered all of these options on your end, let’s meet after tax season to discuss your game plan for the next year in further detail.

Third Quarter: Play Defense Against Errors

Just as a strong defense can prevent the opposing team from scoring, paying attention to detail can help you avoid costly errors on your tax return. Here’s how to play good defense:

• Report All Income: Don’t forget to share all sources of income with us, including freelance work, side gigs, and interest income.
• Keep Records: Maintain organized records of all your tax-related documents and receipts.
• File on Time: It’s important you file your taxes by the deadline (usually April 15th). If we haven’t already connected on your tax return, reach out to us soon, so we can get the ball rolling. Filing late can result in penalties.

Fourth Quarter: Review and E-File

In the final quarter, teams push hard to secure a win. Similarly, you’ll review your tax return for any last-minute adjustments, and then we’ll file it. Consider these steps:

• Review Your Return: We’ll double-check all the information is accurate and send it over to you.
• E-Filing: I’ll need permission to e-file the return. Make sure you get your signatures back to me!
• Payment Options: If you owe taxes, you can explore payment options like setting up an installment plan if you can’t pay in full.
• Save Your Return: Keep a copy of your filed return for your records.
• Postgame Celebration: What to Do After Filing

Just as football fans celebrate after a victory, you can relax and celebrate once you’ve successfully filed your taxes. Here are a few postgame actions:

• Track Your Refund: If you’re expecting a refund, you can track its status on the IRS website.
• Plan for Next Season: As noted above, it’s a good idea to proactively create a game plan for the year ahead. Let’s meet after tax season and discuss your 2024 tax year game plan.
• Stay Informed: Watch out for emails from me keeping you updated on relevant changes in tax laws to stay ahead of the game next year.

We hope this play-by-play tax guide has made the tax filing process feel less daunting and more like a winning strategy. We’re here to be your tax season MVPs and help you get your tax return in the end zone.

If you have any questions or need assistance, don’t hesitate to reach out.

Best regards, Mabetax