As 2025 draws to a close, it’s time to prepare for tax season. A little planning now can save
time, reduce stress, and help you maximize deductions. Check out our essential tips and a
practical checklist below:
Before December 31:
- Do those things recommended by your CPA during your tax planning session.
- Start a filing system. As your records (W-2s, 1099s, bank statements, etc.) arrive, put them
directly in the folder or scan them to an online folder. For clients, you can scan your items
into your Tax Caddy folder anytime. Organizing your records will help avoid errors and
speed up the filing process. - Check your W-4 and consider making last-minute contributions to retirement accounts to reduce taxable income.
- Pay deductible expenses (property taxes, mortgage interest) before year-end if advised during your pre-tax planning session.
- Make charitable contributions and gather receipts. Donations made before December 31 can qualify for deductions!
- Review retirement contributions and maximize limits.
- Consider income deferral or acceleration strategies based on your tax bracket and your tax planning session.
For Employers & Payroll:
- Confirm employee data for W-2 accuracy.
- Audit wages, bonuses, and deductions.
- Schedule special bonus payrolls and ensure proper tax withholding.
- Prepare for filing W-2s, W-3s, and 1099s by January 31.
- If you utilize a payroll provider, make sure they have all their requested information.
After Year-End:
- Work with your tax professional or payroll profession to ensure year end forms are filed. (W2, W-3, 1099, 940, 941, sales tax return, etc).
- Continue to gather information and prepare for simple upload to your tax professional.
- Starting the year off by using your monthly or weekly budget.