TENCU Chronicles

Ah, January—a month of fresh starts, resolutions, and… taxes? That’s right. While April might feel far away, getting ahead of your tax prep in January is one of the smartest financial moves you can make. Don’t worry; we’re here to make it as painless (and, dare we say, enjoyable?) as possible. Here’s how you can get started:

What You Can Do

Gather Your Documents

Start a digital or physical file to collect essential tax forms as they roll in. Watch for W-2s, 1099s, mortgage statements, and charitable donation receipts. Keeping everything in one place will save you a headache come filing time.

Review Last Year’s Return

Dig out last year’s tax return for a quick refresher. It’s a handy reference for deductions you claimed, credits you qualified for, and any life changes that might impact your taxes this year.

Update Personal Information

Did you have a name change, move, or switch jobs? Update your information with the IRS and your employer to ensure your tax documents arrive correctly and on time.

Organize Your Expenses

If you’re self-employed or itemizing deductions, now’s the time to track down those receipts and categorize your expenses. Apps like Mint or Expensify can simplify this task.

Maximize Contributions

January is your chance to make final contributions to retirement accounts for the previous tax year. Doing so might lower your taxable income—a double win!

Consider Professional Help

If your taxes are complex, hiring a tax professional early in the season ensures you get personalized advice and avoid the crunch of last-minute appointments.

Familiarize Yourself with Changes

Tax laws change yearly. Whether it’s new credits or updated limits, quickly reviewing what’s new can prevent surprises and help you maximize your refund.

Bonus: Treat Yourself

Yes, tax prep can be rewarding! Tackle your tasks with your favorite coffee or snack in hand. Turning the process into a mini self-care session might make it something you (almost) look forward to.

Starting in January, you’re setting yourself up for a smoother, less stressful tax season. And who knows? You might even snag that refund faster!