Don’t Wait for Tax Season to Get Organized, Again! Do This Instead!

Believe it or not, there are just 7 months until tax season kicks off again. It may feel like it’s far off, but trust me—now is the best time to start getting your financial life organized. By taking small steps now, you can avoid the last-minute scramble and feel confident when tax season arrives.

The good news is, it doesn’t have to be overwhelming. With a few simple actions, you can get on top of your finances and feel in control all year long.

Why Start Now?

Starting early means less stress when tax season arrives. When you wait until the last minute, it can feel like everything is a rush. You’re digging for all your receipts, trying to figure out what’s deductible, and stressing out over missing documents. But by preparing now, you’ll save time, reduce stress, and be ready to file your taxes with ease.

And here's the best part: You don't have to do everything all at once. Small, consistent actions throughout the year will add up and ensure you're prepared when tax time arrives. Try by creating a checklist and setting a deadline for each task.

Let's dive into what you could do now!

What You Can Do Right Now

Start Organizing Your Receipts

If you're not already tracking your receipts, now is the time to get into the habit. The trick is to write a quick note on each receipt as soon as you get it. Basically, how was this expense business-related. Then, take a picture of it with your phone and email it to yourself with a subject line like "Receipts May 2025."

Afterward, file the photo in a folder within your email labeled with the year (like...“2025 Tax Receipts”). By doing this consistently throughout the year, you’ll already have everything in one place by the time tax season rolls around. No more sifting through old receipts in your pockets or purse!

Keep Personal and Business Expenses Separate

If you're self-employed, a freelancer, or have side income, keeping personal and business expenses organized is crucial. Set up separate folders or accounts—one for business expenses and one for personal if you are tracking that as well. This will save you hours of sorting through receipts later and help ensure you’re not missing any important deductions that could save you money.

Also, track your income carefully: Who paid you, how much, and when.

Set Up a Simple Filing System for Your Documents

Create a digital or physical filing system now to keep all your important tax documents organized. Create folders labeled by tax year (e.g., “2025 Tax Docs”) and start filing things like W-2s, 1099s, investment statements, and any other documents you'll need come tax season. Per the IRS, you should keep all your tax documents for up to 3 years, my personal suggestion is keep everything for 7 years. You never know!

Track Your Deductions

Review potential tax deductions now—especially if you've had any life changes, like moving, starting a business, or getting married. Write down expenses that could be deductible (like... medical costs, charitable donations, business expenses), and keep them organized. Refer back to the "Simple Filing System" mentioned in previous section.

The earlier you start tracking these, the easier it will be to take advantage of all the deductions you’re eligible for.

Start Contributing to Tax-Advantaged Accounts

Are you contributing to retirement accounts or health savings accounts (HSAs)? If not, now’s a great time to start. Consider setting up automated contributions, so you’re putting money aside throughout the year, not just at the end. This will reduce your taxable income, potentially save you money on taxes when you file and the bonus of investing in your future. Win, Win, Winnnn!

Understand Your Withholdings and Estimated Taxes

It’s important to understand how taxes are withheld from your income. For salaried employees, your employer takes care of withholding taxes, which count toward what you owe in taxes. However, for 1099 workers or freelancers, taxes are generally not withheld from your income, so you’re responsible for paying those yourself.

Understanding how to calculate your estimated tax liability and setting aside the right amount for quarterly payments is crucial. By doing this now, you can avoid any surprises during tax season and make sure you’re not underpaid. Check out this free estimated tax calculator: Calculator

The Key to Tax Season Success: A Customized Plan

Tax season doesn’t have to feel like a nightmare. In fact, the key to making it smooth and stress-free is creating a customized plan now. Whether you're an individual, freelancer, or small business owner, planning ahead will save you time, money, and energy in the long run.

Now is the perfect time to organize your receipts, gather your documents, and take small steps that will make tax season easier. But if you’d like more personalized guidance on getting organized, maximizing deductions, and creating a tax plan that works for you, I'm here to help!

Ready to Start?

Let’s work together to create a customized plan that helps you get organized and stay ahead of tax season.

Book a consult with me today, and let’s tackle your tax prep early so you can breeze through the next tax season.

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