Tax season can be a challenging time for both individuals and businesses, but with a little proactive planning, you can avoid the last-minute rush and headaches that often come with filing. Here are ten essential tips to help you get a head start, stay organized, and make your tax filing process as smooth as possible.
1. Start Early and Set a Timeline
Begin your tax prep early to give yourself ample time for gathering documents, consulting professionals, and correcting any issues that may arise. Break the tasks into manageable steps by creating a timeline, with specific goals for each week. Mark key deadlines, especially the tax filing deadline in mid-April (April 15, 2025) for most individuals. (March 15 deadline for S-Corps and Partnerships; and October 15 for returns on Extensions.)
2. Organize Your Documents in Advance
Being organized is one of the most effective ways to reduce tax-time stress. Start by creating a checklist of essential documents you’ll need, such as:
Income documents (W-2s, 1099s, investment income statements)
Receipts for deductions (medical, charitable contributions, business expenses)
Bank statements and credit card records for tracking business-related expenses Consider using a digital tool or app to scan and store your receipts and documents for easy access. Digital storage is not only more convenient but also helps you keep all necessary documents in one place.
3. Review Last Year’s Return
If your finances haven’t changed dramatically, last year’s tax return can serve as a great reference point. Review the forms, deductions, and credits you claimed last year to make sure you’re not missing anything. A quick look back can also remind you of important documents to gather and areas where you might be able to claim similar deductions this year.
4. Stay on Top of Common Deductions and Credits
Knowing which deductions and credits you’re eligible for can make a big difference in your tax liability. Here are a few commonly missed ones:
Home office deduction for self-employed individuals
Charitable contributions (cash or items donated to qualifying charities)
Medical and dental expenses if they exceed a certain threshold of your income
Educational credits like the American Opportunity Credit or Lifetime Learning Credit Make sure you keep detailed records for these deductions, as the IRS may request proof if you’re audited.
5. Track Business Expenses Carefully
If you’re a business owner or self-employed, accurate records of your business expenses are essential. Some common deductions include:
Office supplies, equipment, and software
Advertising and marketing expenses
Business travel expenses
Vehicle expenses if used for business purposes Maintain organized records of each transaction and consider using accounting software to track your business expenses throughout the year. This will make filing your taxes easier and more accurate.
6. Check for Any New Tax Law Changes
Tax laws can change frequently, and staying informed is essential to avoid missed deductions or unexpected tax bills. Each year, review the latest IRS guidelines or consult with a tax professional to stay up-to-date on new rules. For instance, recent changes may affect deduction limits, eligibility for credits, or even income tax brackets.
7. Prepare for Estimated Taxes if Self-Employed
If you’re self-employed or a freelancer, you likely need to make quarterly estimated tax payments. These payments help prevent large tax bills (and penalties) at year-end. Set aside a percentage of your income each month to cover these taxes, and make sure to submit payments on time—typically in April, June, September, and January.
8. Double-Check Your Tax Forms for Accuracy
It’s critical to review all of your tax forms, including W-2s, 1099s, and other income statements to ensure accuracy. Even small mistakes can delay the processing of your return or result in additional tax due. If you find any discrepancies be sure to contact the relevant party immediately to get a corrected form.
9. Consider Hiring a Tax Professional
If your tax situation is complex or you’re unfamiliar with recent changes, a tax professional can offer invaluable expertise. They can help you identify deductions you may not be aware of, ensure compliance with tax laws, and even save you time. Additionally, a tax advisor can help you with planning strategies to minimize your tax liability in the future.
10. File Electronically and Use Direct Deposit for Faster Refunds
Filing your return electronically is faster, more accurate, and more secure than filing by paper. Additionally, choosing direct deposit for your refund can shorten the waiting time significantly. E-filing with direct deposit is generally the quickest way to receive any refunds you may be due.
It’s never too early to prepare for Tax Season
By taking a proactive approach, you can make tax season a far less stressful experience. Start early, stay organized, and keep these tips in mind as you prepare. Whether you’re filing for yourself or your business, a little preparation can help you save time, maximize deductions, and reduce the risk of errors. Here’s to a smooth tax season!
New Year! New Goals! But guess what else January brings…That’s right—the unofficial start of tax season, and here at Loeffler Financial Group, we’re gearing up to make it as painless as possible for you! We even made some great improvements to our building to better serve you, and our clients!
We understand tax prep isn’t exactly the most exciting part of the year (trust us, we know!). But fear not, because we’re all in this together, and we’re here to offer you a quick reminder.
It’s time to start gathering those tax documents. Round up your W-2s, 1099s, receipts, and any other relevant paperwork. And if you don’t have everything just yet, no need to stress. You still have almost two months until the deadline comes knocking. But remember, the sooner you start, the smoother the process will be!
Here at Loeffler Financial Group, we’re genuinely thrilled because we’re all set to be your tax season partners! Whether you’re a tax prep pro or a rookie, rest assured, we’ve got your back and can guide you every step of the way.
We’re more than just an accounting firm; we’re family. This year, let’s breeze through tax season together, making the journey as easy and stress-free as possible. Stay tuned for helpful tips, important updates, and gentle reminders along the way.
Let’s tackle tax season head-on, together! Call 717-393-7366, or book right online for an easy and stress-free Tax appointment.
An Enrolled Agent (EA) is a federally-authorized tax practitioner who has technical expertise in the field of taxation and who is empowered by the U.S. Department of the Treasury to represent taxpayers before all administrative levels of the Internal Revenue Service for audits, collections, and appeals.
What does the term “Enrolled Agent” mean?
“Enrolled” means to be licensed to practice by the federal government, and “Agent” means authorized to appear in the place of the taxpayer at the IRS. Only Enrolled Agents, attorneys, and CPAs may represent taxpayers before the IRS. The Enrolled Agent profession dates back to 1884 when, after questionable claims had been presented for Civil War losses, Congress acted to regulate persons who represented citizens in their dealings with the U.S. Treasury Department.
How does one become an Enrolled Agent?
The license is earned in one of two ways, by passing a comprehensive examination that covers all aspects of the tax code or by having worked at the IRS for five years in a position that regularly interpreted and applied the tax code and its regulations. All candidates are subjected to a rigorous background check conducted by the IRS.
How can Enrolled Agent help me?
Enrolled Agents advise, represent, and prepare tax returns for individuals, partnerships, corporations, estates, trusts, and any entities with tax-reporting requirements. Enrolled Agents’ expertise in the continually changing field of taxation enables them to effectively represent taxpayers audited by the IRS.
Loeffler Financial Group has a team of Tax Advisors, CPA’s and EA’s to help assist with your taxes each year. Our team of experts stays up-to-date on all the tax laws and changes for the upcoming tax season.
Schedule your tax return appointment online here, or call our office at 717-393-7366!
To read more about our tax office and tax advisors click here.
Loeffler Financial Group Expands Services with Acquisition of ITP Taxes, Extending Reach in Tax Preparation and Community Support
Lancaster, PA –Loeffler Financial Group, a trusted name in comprehensive financial solutions, is pleased to announce the acquisition of ITP Taxes, a well-established provider of income tax preparation services for individuals and small businesses across the United States. With this acquisition, Loeffler Financial Group will expand its tax preparation capabilities and enhance its commitment to serving clients nationwide with exceptional service and expertise.
Founded and headquartered in Lancaster, PA, ITP Taxes has built a reputation for reliability and personalized tax preparation services, helping clients from coast to coast navigate their tax needs. Loeffler Financial Group looks forward to honoring and building upon the strong relationships ITP Taxes has developed with both individuals and small business owners. This acquisition not only strengthens Loeffler’s existing service offerings but also reinforces its mission to empower community leaders, entrepreneurs, and individuals toward financial success.
Douglas Loeffler, VP and Head of Operations at Loeffler Financial Group shared his enthusiasm for this milestone: “Acquiring ITP Taxes has been an exciting step forward for Loeffler Financial Group, and it has been wonderful getting to know Dave Shiley and learning about the business he has built. Dave’s dedication to his clients aligns perfectly with our own values, and we’re thrilled to welcome his clients into our family as we continue to grow and build lasting relationships in the community.”
With this acquisition, Loeffler Financial Group will operate two convenient Lancaster-based drop-off locations for tax season document submissions, including their headquarters at 2201 Columbia Avenue, Lancaster, PA 17603, and their new location in the heart of Downtown Lancaster at the Candy Factory, 342 REAR North Queen St, Lancaster, PA 17603. These locations underscore Loeffler Financial Group’s commitment to accessibility and community engagement as they continue to support clients with dedicated, professional tax preparation services.
About Loeffler Financial Group
Loeffler Financial Group is a comprehensive financial services provider offering tailored solutions in tax preparation, bookkeeping, accounting, and financial consulting. Committed to client success and financial well-being, Loeffler Financial Group serves individuals, entrepreneurs, and businesses with a focus on personalized service, integrity, and community impact.
If you own a small business, you need an accountant. Small business owners tend to file their taxes with a free online tax services year after year, but a digital solution can only take you so far. A tax accountant, or should we say a real accountant is an essential part of your small business team.
But why make the switch now? COVID-19.
Various COVID relief bills were passed in 2020 and 2021, which mostly affected the small business sector. With these new bills and laws, some of the previous ones passed were then overturned, making this years 2020 business taxes a little more complex. You certainly want to talk to an accountant if your business qualified for some of the various forms of government and private support and tax benefits this year.
The various forms of government assistance and tax benefits announced in 2020 were unbelievably confusing.
Here are just a few of the government programs and policies that might affect your 2020 small business taxes:
Paycheck Protection Program
Economic Injury Disaster Loans and EIDL loan advances
Employee Retention Credit
Any support from other governments or organizations
But a good accountant is more – much more – than a tax preparer. A good accountant is your small business advisor, not just a tax advisor. He or she should be able to help you deal with all the major financial issues your small business faces and advise you on how to insure your personal financial well-being. Our accountants at Loeffler Financial Group can help guide you on how to handle the financial matters, including the accounting and money handling systems of your business. Our team also will help guide you on ways to structure investment, personal loans, and losses to get not only the best tax treatment but to better manage my cash flow.
What kinds of taxes will I have to pay? What are my tax deadlines?
How can I reduce my taxes?
Which expenses are deductible, non-deductible or have to be depreciated?
What kind of bookkeeping system should I set up?
How can I set up systems to reduce the possibility of theft or embezzlement?
How should I pay myself and what are the tax implications?
Should I use the cash or accrual form of bookkeeping?
Do I need to keep track of inventory? If so, what method do I use?
How do I handle payroll and payroll taxes?
Do I have to collect sales tax? When? From whom?
What kind of retirement program can I set up and how much can I contribute each year?
What other accounting and tax considerations are there for my type business?
A good small business accountant can save you more money in the long run, and help you lower your taxes! Although the deadline for taxes has been extended to May 17, 2021, you want to start gathering your files, and book your appointment today!
