P is for Prepare for Tax Season Now – Your End of Year Checklist

P is for Prepare for Tax Season Now – Your End of Year Checklist

The end of the year can be a stressful time, and adding one more thing to the top of your list is probably the last thing you want to do. But it is important to start to prepare for tax season now, so by the time April rolls around, you can send things off to your tax advisor without a worry. Preparing certain things for your taxes now can save you money when you file next year and in the future.

Everyone’s situation is different, but here is our end of the year checklist to help you prepare for tax season 2021.

Check your filing status. Make sure it is correct, especially if you have recently gotten divorced or married. Also, be sure to consider if you and your partner can save money by filing jointly or individually.

Review your charitable donations. Gather up your receipts for all your generous donations from the year. And then make a decision on your year-end giving, and give now!

Go over your investments. How did your assets do this year? Make sure you account for any gains or losses.

Check on your 401(k). Did you contribute the max amount this year? If not, consider giving yourself a holiday “bonus” by investing a little bit more in your future.

Check deductions. Did you spend a lot of money this year creating a home office? Make sure you’ve got all your ducks in a row when it comes to anything that can be considered a deduction.

Check your HSA account. Did you contribute the max amount to your health savings account? Did you get every necessary medical procedure or appointment this year? If not, reconsider and take care of your HSA account, so you can better take care of your health.

Again, many of these tax tips may or may not apply to you specifically. But they are great place to start. As always, consult a tax advisor and your financial advisor for specific advice and questions. But getting things prepared makes it easier for everyone involved, and takes a lot of pressure off of you, so you can roll into the new year with ease!


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