Game Day for Your Finances: Get Ready for a Winning Tax Season!

It’s that time of year again—tax season! While the Eagles are headed toward the Super Bowl, let’s focus on another big kick-off— the official start of tax season: January 27th, 2025. For many of us, tax season can feel like facing a tough opponent, but with a solid game plan, you can tackle it with confidence, minimize stress and maybe even save some money.
Before diving into tax-preparation details, it’s worth noting that this is an excellent time to prioritize your personal cyber-security. For example, make sure that you and your significant other have secure, shared access to financial passwords, so your confidential information can remain secure while you access needed tax-reporting documents.
Now for your game plan checklist, as you aim to prepare for a winning tax season:
Pay yourself first
- Maximize 2024 contributions before the deadline
- Traditional and Roth IRAs: Contribute up to $6,500 (or $7,500 if you’re 50+).
- Health Savings Accounts (HSAs): Save up to $3,850 for individuals or $7,750 for families, with an extra $1,000 if you’re 55+.
Look for savings
- Score Big with Tax Credits and Deductions
- Education Credits like the American Opportunity Credit or Lifetime Learning Credit.
- Energy-Efficient Home Improvements credits for installing solar panels or upgrading windows/insulation.
Organize and prepare:
- Gather Your Financial Documents Like a Pro
- Income Documents: W-2s, 1099s, K-1s.
- Investment Details: 1099-B, 1099-DIV, 1099-INT.
- Retirement Contributions: Records of IRA and HSA contributions.
- Deductions and Credits:
- Interest (Form 1098).
- Property tax payments.
- Receipts for charitable donations.
- Childcare expenses and education costs (1098-T).
- Medical expenses that exceed 7.5% of your income.
- Other Key Documents: Social Security statements (SSA-1099), unemployment income (1099-G), and last year’s tax return.
Final Whistle
Tax season does not have to be overwhelming. With an effective game plan, you can tackle your tax preparation with less stress and more opportunities to save. Remember, too, that filing early helps you avoid penalties, fix errors (if any), and if you are owed a refund your money arrives sooner. Don’t wait—start now and turn this tax season into a victory!
Disclosure: This blog is intended for informational purposes only and should not be considered tax advice. Tax laws and regulations are subject to change, and individual circumstances vary. Always consult a qualified tax professional or preparer to ensure your specific tax needs are met. 1.27.2025

Written by: Joe Martinez, CFP®, Shareholder, Entrust Financial®