Prepare Effectively: Tax Season is Approaching Fast

As tax season draws closer, many taxpayers are gearing up for the cycle of gathering documents and prepping for tax appointments. How smooth this period is will largely depend on how well you maintained your financial records throughout the year. Regardless of your record-keeping habits, being thoroughly prepared can help your accountant utilize more time to:

  • Explore every potential legal deduction,

  • Assess the most advantageous income reporting methods and deductions for your circumstances,

  • Analyze ongoing tax law changes affecting your status, and

  • Discuss tax-planning strategies to minimize future tax liabilities.

Looking Ahead to 2025 – This year introduces significant changes brought by the One Big Beautiful Bill Act (OBBBA). Key changes include:

  • Tip Income Deduction: Individuals in tip-generating roles can now deduct up to $25,000 from cash tips earned, with phase-outs beginning at $150,000 AGI for singles and $300,000 for joint filers.

  • Overtime Pay Deduction: Deduct up to $12,500 ($25,000 for joint filers) for overtime earnings beyond your regular rate, phasing out for MAGI over $150,000.


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  • Vehicle Loan Interest Deduction: Deduct up to $10,000 of interest from loans on new, U.S.-assembled personal vehicles under 14,000 pounds.

  • SALT Deduction Increase: The cap on state and local tax (SALT) deductions rises to $40,000, though it tapers for higher incomes surpassing $500,000 MAGI.

  • Enhanced Retirement Contributions: Beginning in 2025, individuals aged 60 to 63 can significantly increase catch-up contributions to specified retirement plans.

  • Child Tax Credit Expansion: From 2025 to 2028, the child tax credit grows to $2,200 with a phase-out starting at $400,000 MAGI for joint filers.


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  • Adoption Credit Update: In 2025, adoption credits increase with a substantial portion now refundable.

  • Section 179 and Bonus Depreciation: Businesses can immediately expense up to $2.5 million in qualifying assets, promoting small to medium-sized business investments. OBBBA also ensures 100% bonus depreciation beyond January 2025.

  • Business R&D Expenditures: From 2025 onwards, domestic research expenses will be fully deductible in the year incurred.

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Navigating Choices and Changes – Selecting how to report income and deductions can have immediate and long-lasting implications. For instance:

  • Property Sales: Options may include spreading out taxable gains over multiple years instead of reporting them all at once.

  • Depreciation Decisions: Spreading deductions over years versus taking them all at once impacts your financial outlook and tax liability.

Getting Started – Begin readying yourself for tax season in January. Whether you plan an in-person meeting, teleconference, or mailing documents, establishing good habits early can simplify the process significantly. Consider these best practices:

  • Organize records by category, such as medical expenses or charitable contributions, and utilize any organizers or questionnaires provided. These tools ensure nothing gets overlooked.

  • Highlight any international financial activities, such as foreign bank accounts or trusts. Failing to report these can lead to hefty penalties.

  • Stay diligent with cryptocurrency transactions as these are under increased IRS scrutiny. Any sale or exchange needs correct reporting, akin to stocks.


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  • Ensure all insurance documentation from government marketplaces or employers is in order.

  • Keep annual income statements separate for easy access during appointments.

  • Compile questions ahead of your meeting to make the most out of your time with your tax professional.

Details Matter – Ensure complete accuracy in personal details and review any status changes affecting returns, like marital status or dependent information.

Ensuring you have all necessary documents helps provide clarity and enables a smooth filing process. For unique or complex situations, consult with your tax professional early to avoid unexpected issues.

Let’s Start a Conversation.
You can count on us for professional guidance along with timely, and reliable tax services. If you’re ready to get started, or just want to start a conversation, then click below.
Learn More
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