Tax Season 2024: 8 Tips for Smarter Filing and Deductions

As we step into January 2024, it’s time to kickstart the new tax season. To help you navigate tax season 2024 with ease and confidence, here are expert tips to keep in mind:

1. Gather Your Tax Documents

Begin by collecting all the necessary documents for the previous year, 2023. This includes your W-2s, 1099s, K-1s, and any other relevant forms from employers, banks, brokers, and businesses. Should you spot any errors, make sure to contact the issuer promptly to request corrected copies.

2. Organize Your Records for Tax Season 2024

Create an efficient system for organizing your records. As you receive documents, designate a specific location to store them, or consider digitizing and storing them on your computer. Using your smartphone to take pictures of documents as backups is also a smart practice. Avoid delays due to missing information, a common issue during tax season.

3. Mark Your Calendar for April 15th, 2024

Highlight April 15th, 2024, as a crucial deadline on your calendar. This date serves as the deadline for filing your 2023 individual income tax return, submitting gift tax returns, making contributions to a Roth or traditional IRA for 2023, and paying the first installment of 2024 individual estimated taxes. Set up reminders that work for you to stay on track.

4. Stay Informed About Business Return Deadlines

If you’re involved in partnerships or S corporations, remember that the deadline for filing these business returns in 2024 is March 15th. Calendar-year C corporation tax returns are due on April 15th.

5. Review and Update Your Auto Log

Take the time to review and update your mileage logs, supporting your qualified business miles, moving miles, medical miles, and charitable miles. Ensuring that your logs are both current and accurate is crucial during tax season.

6. Assess Your Child’s Income for Tax Season 2024

Evaluate your child’s income to determine if they need to file a 2023 income tax return during tax season 2024. Typically, a 2023 return is required if your child earned more than $13,850 or had investment income exceeding $1,250 from dividends, interest, or capital gains.

7. Maximize Your Contributions to IRA and HSA

You still have the opportunity to make contributions to your 2023 IRA and HSA until April 15th, 2024, or when you file your tax return, whichever comes first. For tax season 2024, the maximum IRA contribution is $6,500 ($7,500 for those aged 50 or older). The maximum contributions to HSAs are $3,850 for single taxpayers and $7,750 for families.

8. Estimate Your Tax Liability for Extensions

If you’re considering filing an extension, it’s wise to estimate your 2023 tax liability promptly. Keep in mind that even with an extension during tax season 2024, if you owe taxes, you must submit your payment by April 15th, 2024.

With these expert tips, you’ll kickstart tax season 2024 on the right foot, ensuring a smooth and stress-free journey. Stay organized, meet your deadlines, and maintain accurate records to make this tax season a success.

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