With the holiday season just around the corner but not yet in full swing, now is the perfect time to get your finances in order and set yourself up for a smoother filing process next year. By taking steps now, you can avoid last-minute stress and ensure you have maximized your potential savings!

The first step to any successful tax season filing is to organize your documents. Over the course of the year, maintaining important documentation can fall into disarray, making last-minute management a nightmare. Start by gathering any tax-related paperwork, such as receipts for deductible expenses, income statements, and charitable donations. Create a designated folder, either digital or physical, to keep everything in one place so it is all set for when you need it.

Once you have your paperwork in place, the next step is to review last year’s return. Looking over your previous year’s tax return can give you a clear idea of what information you will need this time around. It can also help you spot any changes in your financial situation that may have an impact on your tax liability.

Planning brings you the opportunity to take advantage of the extra preparation time, allowing you to effectively maximize your deductions and contributions. Don’t miss out on tax-deductible opportunities like contributing to your IRA or 401(k). If you are self-employed, be sure your bookkeeping is in good order and accurate to maximize business deductions. Now is also a great time to establish an employer-sponsored retirement plan, such as a SEP IRA or a 401k. Contributions to retirement funds, charitable donations and business expenses are all deductible, so track and calculate them carefully.

Another important step is to look at your withholdings and estimated taxes. Ensure that your tax withholding from paychecks or estimated tax payments (if self-employed) are in line with what you will owe. Adjust accordingly if necessary to avoid surprises or penalties next year.

Finally, the helpfulness of receiving the advice of a professional cannot be overstated when it comes to tax prep. No matter what stage of life you are in, a tax professional can help guide you to ensure you are optimizing your filing.

By taking these steps now, you will be better prepared for tax season and more likely to maximize your returns. Happy planning!