Have you started thinking about your 2024 tax return?

2024 might seem like it’s far away, but it’s not when it comes to taxes. That’s because, planning ahead is critical to ensure you are receiving the most from your return since you’ll be better able to strategize investments, estimate payments, organize paperwork, and account for any new or changing tax laws.

Since we know how important it is to prepare taxes early, we’ve outlined five reasons you should be thinking about your 2024 tax return now.

1. Maximize Retirement Contributions

Making regular contributions throughout the year to a retirement fund is much easier compared to a single lump-sum payment. That’s because contributing smaller (but consistent) amounts ensures you won’t forget to put money into the account of your choosing. It also makes budgeting easier and takes the pressure off having to scrape together money closer to the tax deadline.

2. Strategize Investments

When it comes to investing, you need a plan. Without one, you are putting yourself at risk of making investment decisions that are rushed or poorly researched. That’s why investors should work throughout the year to create a solid strategy that can be tracked (like lower capital gain distributions). In turn, leading to better opportunities and consistent gains that are earned throughout the year.

3. Organize Documents

The most time-consuming part of filing taxes is gathering the paperwork. Sifting through receipts, documents, and invoices can take people hours. But, organizing your documents does not need to be stressful if you prepare early.

Things like receipts and invoices can all be filed electronically and uploaded into files labeled by month and purchase type. There are also plenty of tax filing software systems that organize these files automatically for you. For example, software like QuickBooks allows you to upload receipts to its system and it will then automatically organize them into designated categories (that the account holder creates). This ensures that all your expenses from the year will be in a single location, easy to find, and organized when it comes time to submit.

4. Estimate Payments

Another benefit to preparing taxes early is that you can plan for how much you will owe in taxes. This is especially beneficial for people who have undergone a significant life change. For example, people who have gotten married, had a child or changed jobs would benefit from reassessing their tax liabilities early the amount owed has likely changed. So, if you’ve undergone a significant shift within the given tax year, it might be wise to plan ahead and adjust any withholdings or estimated payments.

5. Seek Professional Advice

Preparing taxes early also leaves plenty of time to speak with a professional about them. Someone like an accountant, a financial advisor, or us at A.P. Accounting & Tax Services can do this for you by assessing your records to determine your tax liability.

The earlier that these discussions happen with a professional, the quicker, easier, and less stressful filing will be. Professionals are also able to offer personalized advice and suggest things like deductibles and credits that you might not have been aware of.

Ultimately, we understand first-how how important it is to prepare your taxes early. If you’re struggling to organize receipts, calculate how much you owe with estimated taxes, and remember deadlines, it’s probably time to get help from a professional.

Whether you’d be interested in learning more, having your 2024 taxes filed with us, or knowing what services would benefit you, give us a call at 407-328-5001.

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