Tax Planning 101: How to Get Ahead for Next Year’s Filing

Our Impact Team
Feb 19
3 min read

Tax season may seem far away, but savvy business owners and individuals know that proactive tax planning can make a significant difference when filing next year. The key to a smooth tax season is preparation, strategy, and leveraging opportunities to maximize deductions while staying compliant with the latest tax regulations.

Essential Tax Planning Tips to Help You Get Ahead.

Organize Your Financial Records Early

One of the biggest challenges during tax season is gathering all necessary documents at the last minute. Avoid the stress by implementing a system to track your financial transactions throughout the year.

Steps to Stay Organized:

Maintain accurate records of income, expenses, receipts, and tax-deductible transactions.
Use accounting software or hire a professional bookkeeper to streamline financial tracking.
Create a dedicated tax folder (physical or digital) for essential documents, such as W-2s, 1099s, expense receipts, and investment statements.

Don’t miss this blog, "Making Taxes Easy: Tips for Organizing Receipts and Expenses," for simple tricks to streamline your tax prep!

Maximize Deductions and Credits

Understanding available deductions and credits can significantly reduce your tax liability. Here are a few common ones to consider:

Business Owners:

Home office deduction (if you use a portion of your home exclusively for business)
Vehicle expenses (if used for business purposes)
Employee wages and benefits
Marketing and advertising expenses
Professional services fees (legal, accounting, consulting, etc.)

Visit the IRS website to explore detailed information on business credits and deductions, including guidance on how to claim them on your tax return.

Individual Taxpayers:

Retirement contributions (401(k), IRA)
Student loan interest deduction
Medical expenses (if exceeding 7.5% of AGI)
Child tax credits and earned income tax credit (EITC)
Visit the IRS website to explore detailed information on individual taxpayer credits and deductions, including guidance on how to claim them on your tax return.

Work with a tax professional to identify deductions and credits you may qualify for based on your specific financial situation. Plan Smart, Save More! Get personalized tax strategies—schedule a consultation now.

Plan for Estimated Taxes

If you’re self-employed or own a business, you may be required to pay quarterly estimated taxes. Missing payments can lead to penalties and interest. To avoid this:

Calculate your estimated tax liability using last year’s tax return as a reference.
Set aside funds for quarterly payments to avoid a year-end tax burden.
Use IRS Form 1040-ES to make estimated payments.

Visit our blog, 2025 Tax Deadlines: Your Comprehensive Filing Calendar, to download our One-Page Calendar—a handy quick-reference guide to keep you on track.

Optimize Your Retirement Contributions

Contributing to retirement accounts not only secures your financial future but also provides tax benefits. Consider maximizing your contributions to:

Traditional IRA – Contributions may be tax-deductible.
Roth IRA – While contributions aren’t deductible, earnings grow tax-free.
401(k) or SEP IRA (for self-employed individuals) – Reduces taxable income while building retirement savings.

Check out our latest blog post: Tax Planning for Retirement: Strategies to Reduce Taxes on Your Nest Egg.

Stay Updated on Tax Law Changes

Tax laws frequently change, affecting deductions, credits, and compliance requirements. Stay informed by:

Following IRS updates and tax policy changes.
Consulting with a tax professional to ensure you take advantage of new tax-saving opportunities.
Reviewing your tax strategy annually to make necessary adjustments.

Work with a Tax Professional

Even with careful planning, tax laws can be complex. A Certified Public Accountant (CPA) or tax advisor can help you:

Identify tax-saving opportunities.
Ensure compliance with IRS regulations.
Avoid costly mistakes that could trigger audits or penalties.
Strategize your finances for both short-term and long-term tax benefits.

Plan Smart, Save More! Get personalized tax strategies—schedule a consultation now.

How We Can Help

Don’t wait until tax season to start planning! Taking action now can help you maximize savings, reduce stress, and stay ahead of IRS deadlines. At Loomis Reddick & Bishop, we provide tax planning strategies tailored to entrepreneurs, business owners, and individuals.

Contact Us

Contact the Loomis Reddick & Bishop Impact Team today for a personalized tax strategy session. Let’s make next year’s tax season seamless and stress-free!

Stay proactive, stay prepared, and take control of your taxes today!

Schedule A Free Consultation Now