Preparing for Tax Season 2025

Tax season is fast approaching, and while filing your return may feel overwhelming, proper preparation can make all the difference—especially when it comes to your retirement strategy. Smart tax planning isn’t just about meeting deadlines; it’s about making decisions that can impact your financial future. Whether you’re looking to maximize deductions, optimize retirement contributions, or reduce your lifetime tax burden, these four key tips will help you navigate the 2025 tax season with confidence. 

Get your documents in order:  

Before diving in, make sure you have all the necessary documents on hand. Being organized not only makes filing easier but helps you avoid missed deductions or delays. This is also a great time to explore free or simple tax filing options. 

Key documents to gather include: 

• W-2 forms 

• Bank Statements  

• Receipts 

• Statement from charities 

• Invoices  

• Insurance records 

• IRA statements  

• 401(k) statements  

• Other important investment statements or records 

If you’re missing anything, now is the time to track it down! Staying ahead of the game will make tax season much smoother. 

Learn More: Your Resource Roundup for Tax Season: 5 Podcasts & Articles to Help You Get Ready 

Meet with a tax professional:  

Meeting with a financial professional can significantly enhance your experience during tax season. They offer personalized assistance with your taxes, helping you navigate the complexities involved. It’s crucial to collaborate with your financial professional to create a plan for this tax season and for managing your taxes throughout your lifetime. 

Learn More: How to Choose a Financial Advisor 

Take your required minimum distributions: 

According to the IRS, once you reach age 73, you must begin taking withdrawals from your retirement accounts. This requirement applies to basic 401(k) and IRA accounts, which have been growing tax-free until you make withdrawals. Remember that the IRS expects to receive its share each year, so you are required to fulfill your required minimum distributions (RMDs). 

Learn More: Tips for Filing Taxes 

Think beyond this year’s tax bill: 

Tax planning isn’t just about minimizing what you owe today—it’s about creating a strategy that benefits you for years to come. At 210 Financial, we help clients not only save on taxes now but build a plan for long-term tax efficiency. From retirement contributions to tax-smart investment strategies, taking a big-picture approach can make a significant impact on your financial future. 

Learn More: Do You Have a Strategy for Tax Season? 

Conclusion:  

We hope these tips help you navigate tax season with ease and set you on the right path for future tax seasons. 210 Financial is here to assist you in preparing for taxes this season in the Peoria-Morton and Bloomington areas of Illinois, as well as the Iowa Quad Cities. Meet with an advisor at 210 Financial today!     

 

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