Lots of people only think about taxes once a year, typically around the April deadline. But keeping up with your tax situation throughout the year can save you money and help you avoid surprises. You don't have to own a business or have a complex financial life to benefit from it. Anyone who wants to feel more in control should consider a year-round approach. At Myrick CPA, we help our clients plan ahead so tax season doesn't catch them off guard. Here are a few steps you can take now to make filing easier later.
Why It Helps to Plan Ahead for Taxes
When you stay on top of your tax situation throughout the year, you're less likely to miss out on deductions or get caught off guard by what you owe. Planning helps you:
- Adjust withholding or estimated payments if your income changes
- Keep better records of deductible expenses
- Time financial moves, like retirement contributions, for better tax outcomes
It also makes it easier to respond if the IRS ever sends a letter or asks for supporting documents.
Life Changes That Can Affect Your Taxes
Several common life events can change your tax situation. If any of these apply to you, it's smart to check in with your CPA:
- Starting a new job or switching careers
- Getting married or divorced
- Having or adopting a child
- Taking on support for a parent or other dependent
Each of these changes can affect your filing status, deductions, and credits.
Keep Your Records Organized Year-Round
A little organization goes a long way. Set up a system to collect key documents as they come in. That could be a monthly folder on your computer or a file drawer in your home office. Include:
- Pay stubs and W-2s
- 1099s from contract or freelance work
- Receipts for deductible expenses
- Charitable donation letters
This habit makes it easier to itemize deductions if that ends up saving you more than the standard deduction.
Look for Planning Opportunities During the Year
There are several smart moves you can make before December 31, 2025:
- Contribute to retirement accounts, whether an IRA or 401(k). For 2025, the limits are $23,500 for a 401(k) and $7,000 for an IRA if you are under age 50, or $8,000 if you are 50 or older. higher limits if you're over 50. This limit applies to both Traditional and Roth IRAs.
- Use the IRS withholding estimator to see if you're on track.
- Review whether itemizing your deductions is the best option.
These are all areas where a tax professional can give you guidance based on your personal finances.
FAQs
What documents should I keep for taxes throughout the year?
Keep your pay stubs, W-2s, 1099s, receipts for business or medical expenses, and acknowledgement letters from organizations to which you made charitable donations.
When should I talk to a CPA about tax planning?
It's a good idea to check in whenever your income or family situation changes or at least once a year.
What's the benefit of itemizing deductions?
If your itemized deductions are higher than the standard deduction, you could reduce your taxable income and pay less overall.
Why Working with a CPA Year-Round Pays Off
Myrick CPA works with clients to help them make smart decisions at every stage of the year. Whether you're navigating a life change or just want a clearer picture of your finances, we're here to help. We offer personalized advice and insights based on decades of experience.
Plan Now for a Better Tax Outcome
If you want a smoother tax season next year, schedule a mid-year planning session with Myrick CPA. Reach out now to get ahead of the end-of-year rush.
Contact Myrick CPA and we'll help you get organized, make smart financial choices, and avoid stressful surprises by the time April rolls around.
