Tax season is officially underway. Amy Chorew and Maeda Palius share strategies to help prepare and organize your documents to help you make the process as stress-free as possible.
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Tax season officially began on January 27th, 2025, but please don’t stress. We are here to help you organize and submit your taxes as smoothly as possible. Follow this simple roadmap and you’re on your way to a hassle-free tax season.
Step 1: Collect your personal information
Before you begin, make sure you have:
Information on life changes in your full name, date of birth, social security number, new address on your driver’s license (if moved) – new baby, marriage, divorce, or you now have your elderly parent now If you support, IRS issued identity protection pins if your loved one dies (if you have)
Why this is important: updating this information can help prevent mistakes and delays.
Step 2: Collect income documents
Required:
W-2 from Employer 1099 for freelance jobs, investments, or other income if you withdraw money from a self-employed person’s retirement account? Share rental income with profit/loss reports from your accounting software (or, if it’s easier)? Provides records of income and expenses
Protip: Most tax returners can scan forms directly, speeding up the process.
Step 3: Find a way to save tax
Business Owner: Make sure you are charging all fees. This includes using shared cars, home office costs (even at corner count desks), utilities, mortgage interest, and insurance. If you are eligible, you may be able to get a simple deduction of $500/month per month instead of tracking all the small details.
Retirement Savings: Until April 15, 2025, you can open a SEP IRA (for self-employed people) to reduce your 2024 taxes.
Rental Properties: Good records are important. We will ensure that your rent deposits are not incorrectly included as taxable income and provide details about home repairs and improvements.
Why is this important: the more you spend on tracking, the less tax you will have.
Step 4: Organize deductible expenses
Instead of passing in a pile of receipts, create a simple, clear list of costs.
Mortgage Interest and Property Tax State Income Tax Payment Charitable Donations (maintain receipts for over $5,000)
Protip: Keep receipts for at least 5 years in case you need them later.
Step 5: Check your tax payment
Make sure you have a record of the estimated tax payments you made that year. Clearly label them with the correct tax period and year.
Bonus Tip: Protect your assets in the event of a disaster
Take a video tour of your home each year to document your belongings. Keep receipts and photos of large purchases and home upgrades. Store everything in the cloud so that you can access it even if your home is damaged. If you have recently been remodeled or landscaping, please renew your home insurance to reflect the new value.
The final pro top
If your tax products provide you with organizers to fill out, don’t stress! Just use it as a guide and instead of handwriting everything, it sends neatly typed information or scanned forms.
Amy Chole is an active real estate agent who lists Connecticut investment property and stepped homes. Since 2008, Amy has joined National Lecture Circuit Education Industry experts on technology and sales strategies to help improve your business. Connect with her on LinkedIn and Instagram.
