MEMBER TIP:

Ease tax prep — make a shopping list

by FWSF member, Louise Cochran (LinkedIn), Principal, L.F. Cochrane & Associates

We all can get overwhelmed with the looming tax deadline. What if there was a different way to approach the deadline and reduce the stress on our shoulders? Here is where you can start:

1) Shopping list — Think of organizing your tax documents like you are putting together your shopping list.  Remember: the $$$ on the documents are from 2024, what is done is done. All you can do is gather and organize.

2) Organize your documents — Identify and create groupings (see below).  

  • documents you can find electronically (to be saved to your desktop)
  • documents you have hard copy receipts for (to be put in a folder for scanning, then put on your desktop)
  • summary sheets you have to create and add up (donation, medical expenses, business income and expenses, rental income and expenses)
  • list of documents that come in later (K-1s, 1099s from brokerages, Form 5498s from retirement accounts)

3) Small enough to manage, big enough to matter — Concentrate on working on each of the organized groupings in #2 separately; consider completing each grouping with a cup of delicious coffee or a cocktail if necessary. Don't try to get everything done all in one grind — this will not serve you well.

Know your deadlines:

  • S-Corporations/Partnerships - due March 17, 2025
  • Individuals/C-Corporations - due April 15,2025
  • 2025 First Quarter Estimates -  due April 15,2025
  • Extensions are available, but these extensions are only to extend when the return is filed, it does not extend when taxes can be paid

My goal for my clients is to assist them in filing their taxes by the deadline, so that they can use their 2024 tax return as a blueprint and make changes to their lifestyle, habits, and organization for the next 8 months before the next deadline is upon us.  If my clients can make at least one pivot/tweak in 2025 then that is one less stress to feel when sitting down to organize 2025.

––––––––––––––––––––––

The suggestions of the contributor do not constitute professional advice and are intended for general informational and educational purposes only.  Nothing contained herein is intended to be or should be used as a substitute for professional advice, and readers should not act or rely on this information without seeking specific guidance directly from a qualified professional.

The opinions and information expressed in this blog/post/webpage are solely those of the contributor and do not necessarily reflect the views of FWSF. FWSF is not responsible for any errors or omissions in this content or any damages resulting from its use.