Are you ready to file your 2024 tax return? If not, now’s the time to start preparing.
We reached out to Amy Raven, Managing Partner and CPA with Sorge CPA and Business Advisors, SC, based out of Madison, Wisconsin for her tips on how to best prepare to file your taxes in 2025.
What Documents Do I Need to Gather to File My Taxes?
The best way to get started is to gather the documentation and information you’ll need in order to file.
What you need in order to file will vary from one person to the next. Whether you’re self-employed, a student, a homeowner, and more can all impact the documentation you’ll need.
You should start to gather documents that identify you and your dependents (think social security or tax ID number), information about your sources of income (like W2s, K-1 Forms, rental property income, retirement income, etc.), and documentation regarding any deductions you’ll take (such as 1098 or other mortgage interest statements, charitable donation documentation, medical expenses, health insurance, childcare expenses, etc.).
The IRS provides this list of documents you may need to file your taxes.
Additionally, Raven notes that it's important to do your best to get all of this documentation to your tax advisor at one time. "When we receive this documentation a piece at a time, it can create inefficiencies or mistakes in filing," she says.
Should I Use a Tax Advisor to File My Taxes?
Whether you choose to use a tax advisor or file on your own depends largely on your unique situation. Many people choose to file on their own if their tax situation is fairly simple and they’re looking for cost-savings.
The more complex your taxes, however, the more you will benefit from using an advisor. For example, if you are self-employed, own rental properties, have income from stock or other property, or dealt in cryptocurrency, you may want to consider working with a professional.
What are the benefits of working with a tax advisor?
“Experience, knowledge, consistency, clarity, advice, and strategy” are just some of the benefits, according to Raven.
“If a client values strategy, quality, money, and service, then that’s a great match for a taxpayer-accountant combo. If a client values cost and time, then they may be better off self-preparing their taxes using available tax-filing software,” she adds. The IRS will also allow people within certain income thresholds to file for free via its website here.
Additionally, there are accountants who just fill in the numbers for you, and then there are accountants who help build a strategy for enhancing your overall financial health. With someone who just fills in the numbers, they may take the weight of completing taxes off your shoulders, but they aren’t always going to help you find the best ways to maximize your tax returns and provide sound advice on managing your overall financial wellness.
What Should I Look for in a Tax Advisor?
If you choose to work with a tax advisor, there are a few questions you should ask.
For starters, does your advisor hold a credential like CPA (Certified Public Accountant) or EA (Enrolled Agent)? In order to maintain these credentials, advisors must complete continuing education, meaning they stay on top of the ever-changing world of taxes and can provide you with the best possible advice.
Next, does your tax advisor have a secure, simple process to upload your documentation and information? This will keep the process as easy for you as possible, while also ensuring your confidential information stays secure. It also demonstrates the commitment your advisor has made to making the process smooth for you.
Finally, are you working with a single or multi-person firm? “Either way you are paying for their expertise,” says Raven. “A team of CPAs and EAs has a broader set of experiences and will likely provide a more robust financial strategy, and thereby a more insightful and sound tax filing.”
How Will I Get My Tax Refund?
Ideally, it will be direct deposited.
“But it will only come that way if you provide your banking information on your tax return. Be sure your routing and account numbers are accurate, so your refund finds its way to your account,” Raven says.
She also recommends that you use tools like Where’s My Refund to check the status of your tax return once you file.
It’s also possible you’ll receive your refund by check. This can happen for a few reasons. First, the account must be in your own name, your spouse’s name, or a joint account. If you request that your refund goes into an account without your name on it, you may receive a paper refund check instead.
Second, your financial institution may reject the deposit. This can happen if you input the incorrect account or routing number, or the name on the account doesn’t match the name on the direct deposit.
And finally, the IRS can only deposit up to three electronic refunds into a single financial account, so if you have more than three going into that particular account, you’ll receive a check for at least one of them.
What Do I Do if I Owe Taxes?
Ensure you file by April 15th, 2025, no matter what, and pay in as much as you can by that time. You can pay electronically here for federal amounts due. State taxes will need to be paid separately.
If you are unable to pay your amount due in full, you may be eligible for a payment plan with the IRS.
What Else Should I Know About Filing Taxes?
There are Changes Every Year
Plan Ahead
The best thing you can do to stay on top of your taxes each year is to stay in touch with your tax accountant throughout the year. While it may be too late to take this advice for filing your 2024 taxes, it's a good time to get started for next year.
"Tax professionals work incredibly hard to serve hundreds, if not thousands, of people in a very short window of time. Many put their own self-care on the back burner to meet their clients' needs because it really is that important to them," Raven says.
“We learn so much about our clients during filing season that we wished we had known throughout the year, and now there’s so little time in those short 10 weeks to spend with each of our clients,” she says.
That may mean doing a real deep dive into your tax return or connecting your tax accountant with your financial advisor so they can strategize for your future.
“Taxes are one of those necessary things in life that needs to be done – a reconciliation of the year. The magic happens throughout the year when taxpayers and advisors build trust with each other. That’s how a lasting partnership is developed.”
If you really want a great relationship with your tax advisor, Raven has some advice for that too.
"What these professionals need from January to April is kindness, patience, and grace," she said.
"After tax season ends, they want to be included with your team of professionals, like your financial advisor and banker, to help you succeed in reaching your financial goals."