How to Prepare for Tax Season

Tax season can feel stressful, but it doesn’t have to be. With a little planning and organization, you can make the process much easier. This guide explains what to gather, what to expect, and how to get ahead so you can file with confidence.

Why Getting Ready Early Matters

Preparing early saves time and reduces mistakes. The IRS reports that electronic filling with direct deposits can lead to faster refunds – typically within 21 days for most taxpayers. Getting organized now means less stress later and helps ensure you don’t miss important documents.

1. Gather Your Personal Information

Before you begin, make sure you have the basics ready:

• Social Security numbers for you, your spouse, and dependents

• Last year’s tax return

• Bank account and routing number (if you want direct deposit)

This information helps you file faster and reduces delays.

2. Collect Your Income Documents

Keep all income paperwork in one place. Common forms include:

• W-2s from employers

• 1099-NEC for contract or freelance work

• 1099-INT or 1099-DIV for interest or dividends

• 1099-K for payment apps if you meet reporting thresholds (The IRS raised the $600 rule enforcement to 2025).

Tip: Companies must mail most tax forms by January 31 each year.

3. Organize Your Expense Records

If you qualify for deductions or credits, keep track of:

• Charitable donations

• Medical expenses

• Education costs

• Childcare payments

• Business expenses (if self-employed)

Organizing receipts early saves hours later.

4. Know Which Credits and Deductions You Can Claim

Credits and deductions can lower your tax bill. Here are a few common ones:

• Child Tax Credit

• Earned Income Tax Credit (EITC)

• Education credits, such as the American Opportunity Credit

• Home mortgage interest deduction

Each credit has different rules. The IRS has full details on who qualifies.

5. Choose How You Want to File

You can file your taxes:

• On your own with tax software

• Through a certified public accountant (CPA)

• With IRS Free File if your income qualifies

Tax professionals can help if your situation is more complex.

6. Decide If You Need an Extension

If you’re not ready by the deadline (usually April 15), you can request a six-month extension. But remember – an extension gives you more time to file, not more time to pay.

FAQs About Preparing for Tax Season

When does tax season start?

Tax season normally begins in late January when the IRS starts accepting returns. You can check the IRS website for the exact date each year.

What if I didn’t get a tax form I need?

Contact the employer or payer first. If they do not respond, you can request help from the IRS.

Do I need to keep my receipts?

Yes. The IRS recommends keeping tax records for at least three years.

How long does it take to get a refund?

Most refunds arrive within 21 days when you file electronically with direct deposit.

Why should I work with a tax professional?

A CPA can help you avoid costly mistakes, find deductions you may miss, and ensure your return is accurate, especially if you run a business or have complex income.