March Through Tax Season with these Tax Preparation Tips

Taxes are a challenge, but with a bit of planning, you can tackle them head-on. Whether you are managing your yearly paperwork or part of a military family balancing moves and deployments, staying organized makes all the difference. Follow this tax checklist to learn about the documents you need to file your taxes, how to get prepared, and what tax deductions to claim. Stick to these tax preparation tips, and you will be ready to march through tax season without breaking a sweat.

1. Review Different Tax Filing Statuses and Choose the Right One

Your filing status matters—it determines your tax bracket, deductions, and more. Are you filing as single, married filing jointly, married filing separately, head of household, or qualifying widow(er)? Take some time to figure out the correct option for your situation. If you are unsure, the IRS website provides filing status definitions.

NOTE:  If you have recently had major life changes like getting married, divorced or having a child, your filing status may have changed—double-check before proceeding.

2. Keep Track of Tax Deadlines and Set Alerts

Missing the tax filing deadline can cost you, so make note of these important dates. Usually, the IRS filing deadline is April 15th, though it can vary from year to year. If that date falls on a weekend or federal holiday, the deadline is extended to the next business day.

There are some exceptions to this rule. Specifically, some military members and their families may be eligible for tax filing extensions. Plus, self-employed individuals (or those required to pay estimated taxes) have their own quarterly deadlines to meet.

FIELD TIP: Set early reminders so you have enough time to get everything in order—you be happy you did!

3. Organize Your Personal Information

To complete your taxes, it’s important to start assembling key personal details. This not only saves time but helps prevent errors while filing.

• Social Security Numbers for yourself, your spouse (if married), and any dependents
• Bank Account Details for direct deposits
• Tax Return from Previous Year for reference—it’s your go-to guide for this year

4. Gather All Income Documents

What documents do you need to file taxes? Gathering the right documents may feel overwhelming, but staying organized will make it easier. Depending on your employment situation, here’s what you will most likely need:

• W-2 Forms for employees/associates
• 1099 Forms for freelancers, gig workers, or contractors
• Rental Income Documentation if you own a rental property
• Other Income Sources such as side gigs (your Etsy shop counts), alimony, or investment earnings

FIELD TIP: If your forms are split between email and physical mail, print the digital ones or scan the paper ones, keeping them all in one place when it’s time to file.

5. Sort Through Your Tax Credits and Deductions

What tax deductions can you claim? To reduce your taxable income, you will need to have the right paperwork in order. Here are some documents to keep on hand:

• Medical Expenses exceeding 7.5% of your adjusted gross income
• Military-Specific Expenses if applicable to your current role or prior service (Learn more about military tax benefits in our recent article)
• Student Loan Interest Statements
• Charitable Contributions, including donations to qualifying organizations, and remember to keep receipts or records
• Home Office Deduction if you are working from home
• Mortgage Interest paid on your home loan, which will require Form 1098 (Use a Mortgage Tax Calculator to learn how to calculate mortgage interest tax deduction)
• Childcare Costs for the support of dependents

By saving these documents throughout the year, you can maximize your tax savings and minimize potential taxable income.

6. Check Your Retirement and Investment Contributions

If you have been saving for retirement or investing, be sure to include those accounts when filing your taxes.

• 401(k) or Roth IRA Contribution Records for the current tax year to determine eligibility for retirement-related tax deductions (Use a 401(k) Calculator and Roth IRA Calculator to help you plan for retirement)
• HSA (Health Savings Account) Contributions for monitoring your tax-free growth (Learn how to calculate HSA contributions with our HSA Calculator)
• Capital Gains/Losses Statements, covering stocks, crypto, or any other investments

NOTE: Investment losses could reduce your tax liability, but you will need to provide the exact amounts to take advantage of this benefit.

7. Get Your Bank Accounts Ready for Potential Tax Payments

How do you know if you owe taxes? If your taxes haven't been automatically withheld from your paycheck, you will most likely owe money. Make sure you have sufficient funds in your account to cover any owed taxes. It's always better to plan ahead than to rush for money at the last minute.

8. Pick the Best Method for Filing Your Taxes

When it’s officially time to file your return, you have options. Each approach has its benefits, so choose what works best for you:

• Hire a Professional (CPA or Tax Preparer) for personalized help, especially if your tax returns are more complex
• Use Online Tax Software with tools like TurboTax, TaxAct, or H&R Block for a step-by-step guide if you prefer filing taxes yourself

FIELD TIP: Want a tax filing discount? Armed Forces Bank has partnered with Intuit TurboTax to offer our clients an exclusive 10% TurboTax discount on federal products!

Stay Battle-Ready for Tax Season with Armed Forces Bank

Tax preparation is all about staying organized. With this tax checklist and our helpful tips, you can tackle filing easily and avoid the last-minute rush. No matter your experience level, a little preparation goes a long way in making tax season simpler.

Looking for extra guidance or tools to help with the process? Armed Forces Bank is here with special resources and offers designed to meet your needs. Get started today!

 

MORE TAX PREPARATION TIPS:
Best Calculators for Taxes
What Are The Military Tax Deductions and Credits?
How Do You Get a Tax Filing Discount?
What Homeownership Tax Deductions Can You Claim?
How Can You Keep Your Personal Information Safe During Tax Season?
What Are Some Common Tax Return Mistakes to Avoid?
How Do You Build Credit with a Tax Refund?
How Do You File Self-Employment Taxes as a Small Business Owner?