The 2024 tax season in Nashville, like most of the country, kicks off later this month. If you’re just now getting around to the prep work for filing your taxes, it’s already cutting it close. While the April 15 deadline may still seem far-off, an accounting firm will advise you to get started as early as you can. Any extra time you can devote to your taxes goes a long way in ensuring you make it through the season unscathed.
Ready to roll up your sleeves and take on this task? Below are some tips for a less stressful tax filing experience.
Study recent tax changes
Reviewing significant tax changes prior to filing is always a good idea, as some key amounts are adjusted annually to account for inflation. For instance, standard deduction amounts for the 2023 tax year have increased: Single filers can claim a deduction of $13,850 (up $900 from the previous year), while married couples filing jointly can get $27,700 (up $1,800 from the previous year). Additional deduction amounts also apply once filers reach the age of 65.
Apart from this, changes to income tax brackets and contribution limits have also been introduced.
Organize your documentation
It’s best practice to organize tax documentation as you go, but if you haven’t been as diligent with this, you still have time to collect and sort statements and receipts. In addition, set aside any documents related to major life changes—like getting married or having a baby—as these will also be required when you file your taxes.
Take note of credits and deductions
You may qualify for a number of tax credits and deductions based on your circumstances and/or activities throughout the year. Credits include earned income tax credit, child tax credit, child and dependent care tax credit, education tax credit, energy efficiency tax credit, and more. Deductions, on the other hand, can be standard or itemized, and if you are eligible for both, you may choose which offers bigger savings for you. Fully exploring these options allows you to minimize your tax burden.
Consider professional help
Tax preparation can be overwhelming, more so if you have complex taxes. Sometimes the best course of action is to leave it to a professional. An accounting firm will help you keep track of the latest in tax legislation, reconcile your income and expenses, eliminate errors from your return, and maximize tax opportunities. The biggest advantage of enlisting professional help, however, is the peace of mind it brings. With an expert in charge, you can be confident that your taxes are being done correctly and completely.