We’re officially a few weeks into the fourth quarter of the year, and getting your finances organized now will make the 2024 tax season that much easier. |
Here are four ways you can prepare for the upcoming tax season: 1. Update Your W-4 Tax Withholding Form: Did you have any major life changes in 2024, such as getting married or having a baby? Time to update your W-4 with your HR department. Go to How to Fill out Your W-4 for more information. 2. Self-Employed Business Deductions: If you’re self-employed and/or receive 1099 income but haven’t been keeping track of business expenses, Q4 is a good time to review previous quarters and organize those expenses into categories so you don’t have to pull an all-nighter on April 14th. Check out our blog post on Self-Employed Expense Categories for more information. 3. Keep Track of Itemized Deductions: Do you itemize deductions instead of taking the standard deduction? Organizing the receipts you have so far in 2024 for any unreimbursed medical expenses and cash and/or non-cash contributions will make life easier during tax season. 4. Pay Your Quarterly Estimated Taxes: Check whether you’re up to date on your quarterly estimated tax payments. People who typically owe quarterly estimated taxes are self-employed and don’t have taxes withheld through a paycheck, or those who tend to owe more than their usual withholding and don’t want to get stuck with a large tax bill and/or penalties at the end of the year. |