Whether it’s hectic work schedules, tight deadlines, or collective anxiety around the holidays, this particular time of year always carries with it a certain level of financial stress.

But as they say, the best defense is a good offense; and the best way to stay ahead of the game when it comes to submitting this year’s taxes is to prepare what you can ahead of time.

Take a few minutes to read the guidelines below, and you might just save hours in the long run.

TAX TIPS FOR INDIVIDUALS

Refer back to 2024: Make an educated guess on what you might owe or receive, as experts suggest that rates and deductions will be similar to last year. Furthermore, any changes to tax legislation when President-elect Donald Trump takes office most likely won’t take effect until 2026, according to Kiplinger editor Joy Taylor. 

Individuals might also benefit from checking their employee benefits to ensure they’re taking full advantage of their health insurance or 401K contributions.

TAX TIPS FOR SMALL BUSINESS OWNERS

Credits / Deductions: Entrepreneurs and/or LLC owners should assess what new deductions you might be eligible for, whether related to recent business or personnel expenses, charitable donations or energy-efficient transportation. Read more about certain credits and deductions here.

BOI Reporting: Additionally, businesses formed prior have until Jan. 1, 2025 to submit their one-time BOI report to the FinCEN website.

Extension for Hurricane Beryl Victims: As a reminder, those who were affected by Hurricane Beryl, which includes much of the Greater Houston Metro area, were granted a Feb. 3, 2025 extension for certain tax deadlines. Visit our recent post about the IRS extension to learn more.

TAX TIPS FOR 1099 / CONTRACT WORKERS

Double-check deadlines: Similar to entrepreneurs or business owners, contract workers may be entitled to the Feb. 3, 2025 tax deadline. They’ll also be required to submit a BOI report, even if the LLC was formed prior to 2024.

Begin Collecting Paperwork: Ensure you have proper IRS forms from all clients and contract agreements, and reach out to request any paperwork that may be missing.

Locate receipts or proof-of-purchase for office supplies or inventory purchased in 2024, as these could increase certain eligible deductions or serve as potential write-offs.

Further Reading: Check out 7 Reminders for 1099 / Contract Workers on the Plains Tax Strategies website.