With tax season officially underway, here are several ideas to make filing your return as stress-free as possible:
Gather your tax information for filing. Items you’ll need include K-1s, W-2s, 1099s and other forms you receive from your business, employers, brokers, banks, and others. If you find any errors, contact the issuer immediately to request a corrected copy. And if you have tip or overtime income, be prepared to break this income out to take advantage of tax-free savings as this will not necessarily be broken out on your W-2.
Organize your records. Once you’ve started gathering your information, find a place in your house and put all the documents there as you receive them, or consider scanning documents to store on your computer. You can also take pictures of the documents with your phone as backup. Missing information is one of the biggest reasons filing a tax return becomes delayed.
Create an April 15th reminder. This is the deadline for filing your 2025 individual income tax return, completing gift tax returns, making contributions to a Roth or traditional IRA for 2025, and for paying the first installment of 2026 individual estimated taxes.
Know the deadlines for business returns. If you are a member in a partnership or a shareholder in an S corporation, the deadline for filing business returns for these two entities is March 16th. Calendar-year C corporation tax returns are due by April 15th.
Review your child’s income. Your child may be required to file a 2025 income tax return. A 2025 return is generally required if your child has earned more than $15,750, or has investment income such as dividends, interest, or capital gains that total more than $1,350.
Contribute to your IRA and HSA. You can still make 2025 IRA and HSA contributions through either April 15th or when you file your tax return, whichever date is earlier. The maximum IRA contribution for 2025 is $7,000 ($8,000 if age 50 or older). The maximum HSA contribution is $4,300 for single taxpayers and $8,550 for families.
Calculate your estimated tax if you need to extend. If you file an extension, you’ll want to do a quick calculation to estimate your 2025 tax liability. If you owe Uncle Sam any money, you’ll need to write a check by April 15th even if you do extend.
Plenty of tax changes are lining up as the calendar turns toward 2026, and knowing what’s coming can help you stay a step ahead. Before then, there’s also several moves to make filing your 2025 tax return as easy as possible.
Preparing to file your 2025 tax return
Gather records to support deductions for no tax on tips and no tax on overtime. Review the approved occupations for qualified tips and confirm the amount of this benefit you expect to claim in 2025. You will need proof of these claimed amounts. The same holds true for overtime pay. Employers are not required to issue W-2s or 1099s with this information in 2025, but they should provide you with the necessary confirmation of the dollar amounts. Compare these employer-provided amounts with your records to ensure they match prior to filing your tax return.
Look for new Form 1099-DA. If you own cryptocurrency or other digital assets, you may see this new form. Starting with the 2025 tax year, exchanges and brokers must report certain cryptocurrency and digital asset transactions, so you should track cost basis, sale dates, and wallets used to avoid mismatches or questions from the IRS.
1099-Ks may still be issued. You shouldn’t see a Form 1099-K from a payment processor such as PayPal or Venmo unless you have 200 or more transactions amounting in more than $20,000 in payments from the processor. But because of the many tax law changes in this area you may still receive a Form 1099-K in error. If you receive one, don’t throw it away! Include it with your other tax documents for proper reporting on your 2025 tax return.
Review IRA and HSA accounts. If you have an IRA or HSA account, you can make 2025 contributions up until either April 15, 2026 or the date you file your return, whichever is earlier.
What’s new in 2026
Above-the-line charitable contributions. You can deduct $1,000 of charitable contributions if single or $2,000 if filing jointly. This is available to you whether you use the standard deduction or itemize your deductions. There’s also the introduction of a 0.5% floor for itemizing charitable contributions.
Itemized deduction phaseout is back. If you’re in the top 37% tax bracket, your itemized deductions could be reduced. This phaseout of deductions is being re-introduced beginning in 2026.
Gamblers take a loss. Losses from wagering transactions are now limited to 90% of such losses. Under the previous law you could claim deductions up to the amount of your winnings. For example, if you won $10,000 and incurred $15,000 in losses over the course of a tax year, you could deduct $10,000 using the previous law. Under the new law you can only deduct 90% of your losses, or $9,000 in this example.
Mortgage insurance premiums can be reported as an itemized deduction.
Elimination of many energy credits. This includes the credit for purchasing electric vehicles after September 30, 2025 and the elimination of many residential energy efficient purchase credits at the end of 2025. So plan accordingly.
As a small business, once you decide to extend credit to a customer, you now have a financial stake in continuing that relationship even if you suspect there might be trouble brewing.
Here are some ideas to help you manage this risk.
Develop a rating system. Score each customer with a number. The number represents to whom you will sell on credit and how much risk you are willing to take. Also have scores that represent customers you will not bill and those who you will no longer take orders from because of credit risk. Develop a system to objectively assign the score. Payment history and external credit scoring reports are both good indicators of whether a particular customer will be an acceptable credit risk.
Consider credit applications. Create a simple credit application. The application should be signed by the responsible party to pay the bill. If large credit amounts are expected, get a person to take personal responsibility to pay the bill. This will provide an additional means to collect your money should the company fail to pay. You will need this signed document if you wish to use a collection agency to collect delinquent accounts.
Look at history. Those to whom you provide a credit line must have their payment history monitored. If they are habitually late payers, reduce their credit line. If they frequently miss payments, move them to prepay only.
Create a notes section on your customer records. Use this to record what a late paying customer tells you. Over time, this will reveal the customers who are honest and the customers who fail that test. This idea also provides continuity of communication for the customer that tries to tell different employees different stories.
Develop a collection system. The best credit rating system starts with a receivable aging report run once a month. This will quickly show you current trouble customers and potential trouble customers. When a bill ages through the report, know what you are going to do to collect bills at 30 days, 60 days, 90 days and anything older than that.
Look for other signs of trouble. Train your team to be on alert for:
Customers paying smaller invoices while larger invoices go unpaid.
The customer fails to return your phone calls or shows annoyance at your inquiries.
Your requests for information, such as updated financial statements, are ignored.
The customer places multiple, large orders and presses you for a higher credit limit.
The customer tries to coax you into providing a good credit report to another supplier.
You get word that the customer’s credit rating has been downgraded.
Remember, great customers can have sincere problems paying a bill. By having a good credit rating system, you can more readily identify the customers you want to accommodate to pay their bills and those customers whose activity should be suspended because they are truly problem accounts.
As always, should you have any questions or concerns regarding your tax situation please feel free to call.
Every January brings a familiar ritual. We promise to eat better, exercise more, and finally organize the garage. These are fine goals, but if you want a resolution that delivers real, measurable value, fewer taxes paid over your lifetime is about as concrete as it gets. Here are three possible resolutions to consider:
Resolution #1: Maximize use of your retirement accounts
One of the simplest ways to lower your current tax bill is by maximizing contributions to 401(k)s, IRAs and similar accounts. You can also defer taxes by maximizing contributions into 401(k)s and Traditional IRAs or reduce your taxes in the future by considering Roth accounts. Some other great tips:
Ensure you are taking advantage of catch-up contributions.
Always contribute to take advantage of any employer matching programs.
Take full advantage of SEP IRAs as a small business owner.
Look to create additional accounts when possible through spousal retirement accounts or youth accounts when children have earned income.
This resolution can be rich with tax saving ideas.
Resolution #2: I will keep my tax records organized.
If tax season feels like a scavenger hunt through old emails and crumpled receipts, organization should be high on your list. Remember, if you can’t support a deduction, you can’t take it. This is especially true if you run a small business, if you want to take advantage of things like the new $1,000 ($2,000 joint) charitable contribution deduction, or claim the teacher out-of-pocket expense deduction. The same is true with educational expenses.
Resolution #3: Commit to paying health costs tax efficiently
A health savings account (HSA) is one of the most powerful tax saving tools in the tax code. Contributions are often deductible, with earnings on funds in the account usually tax-free. Plus qualified medical withdrawals are also tax-free. So try to maximize your eligible donation into your HSA each year, including catch-up contributions. Then invest your unused funds to grow tax-free. Leaving the HSA untouched allows it to function like a stealth retirement account. Years down the road, those funds can be used for healthcare costs that almost everyone faces, often with significant tax advantages.
Making taxes a year-round conversation
Taxes are not a once-a-year event. Life changes like income shifts, business activity, investments, or family milestones can all affect your strategy.
This year, choose a resolution that quietly compounds, rewards consistency, and pays you back every April.
When it comes to personal finance, guidance is often delivered in quick, confident soundbites:
Open a high-yield savings account!
Sign up for a rewards credit card!
Buy your food in bulk to save money!
On the surface, these suggestions sound like common sense. But managing your money is rarely this simple, as what works brilliantly for one person might not be the best move for someone else. Here’s a closer look at a few common financial tips and how the hype holds up in practice.
#1 – High-yield savings accounts: A favorite low-risk move
Why they sound great: High yield savings accounts (HYSAs) are often promoted as a simple way to make your cash work harder. While a standard savings account may pay just 0.01% interest, many HYSAs offer more than 4% APY, a major boost if you’re building an emergency fund or saving for short-term goals.
The reality check: Everyone should consider better yields for their everyday funds. To not do so is simply giving this money away to the bank. But you need to be smart. Putting this money in CD’s often includes a hefty early withdrawal penalty. So find accounts with reasonable rates and then know how to transfer the money penalty-free to transaction accounts when you need it. Remember, a 4% yield on $5,000 provides approximately $200 every year. Would you be willing to take $200 and throw it on the street? Most banks hope the answer is yes, so they can pick it up.
Worth the hype? Yes, for the savvy consumer. While it won’t change your financial situation, it helps establish best practices and encourages active management of your financial life.
#2 – Credit card rewards: Free money or clever marketing?
Why they sound great: The pitch is to earn cash back, travel points, or perks for spending money you were going to spend anyways. Some cards even have generous sign-up bonuses worth hundreds of dollars.
The reality check: Credit card rewards can be lucrative, but only if you pay your balance in full every month. The second you start carrying a balance and paying interest, these rewards vanish into the void – lost in never-ending interest charges. Many cards also have annual fees, category restrictions, or minimum spend requirements that can lead you to overspend for the sake of earning points.
Worth the hype? Yes, but only for those who DO NOT carry a balance from month to month. If you’re debt-averse and organized, rewards cards are a tool, not a trap.
#3 – Buying in bulk: The Costco/Sam’s Club effect
Why it sounds great: The logic is simple: buying in bulk means paying less per unit. Warehouse clubs and bulk shopping apps promise you’ll save a fortune on everything from cereal to toilet paper.
The reality check: Bulk buying can indeed slash your cost per item, but only if you use it and have the space to store it. So be careful with perishables you can’t consume in time. And know your storage limits, especially for bulky items like paper towels.
Worth the hype? If you have a large family the savings are easy to obtain. If not, you simply need to be a smart shopper or shop with a friend or two to share the bulk purchase and the savings.
Financial tips are great, but only if you understand how they work and make them work for you and your situation.
