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!

The start of a new year brings a fresh opportunity to set goals and create a roadmap for growth. For business owners, establishing solid financial resolutions can be a game-changer, enabling better decision-making, improved cash flow, and long-term success. Here are some essential steps to start the year on the right foot and make 2025 your most financially healthy year yet.

1. Set Clear Financial Goals

Defining clear, measurable financial goals is the first step toward making improvements that last. Ask yourself these questions to get started:

• What do you want to achieve financially this year? This could be increasing revenue, reducing expenses, or building up a reserve fund.
• How much do you want to grow? Quantify your goals (e.g., “increase net income by 15%”) to measure progress.
• What are your short-term vs. long-term goals? For example, a short-term goal might be reducing outstanding debts, while a long-term goal might be expanding your business into new markets.

Having a clear vision of where you want your finances to be will help keep you focused and motivated throughout the year.

2. Review and Update Your Budget

Your budget serves as the foundation for all financial planning, making it essential to review and adjust it regularly. Here’s how to start the year with a budget refresh:

• Evaluate last year’s budget. Look at areas where you overspent or underutilized resources. Analyzing past performance can offer insights into more realistic budgeting.
• Identify necessary adjustments. Consider any planned changes, such as hiring new staff, investing in equipment, or changing vendors, and incorporate these into your budget.
• Create flexibility for unexpected costs. Build a contingency fund within your budget to manage unforeseen expenses without disrupting cash flow.

Maintaining an updated budget keeps your business on track and highlights areas where you can potentially cut costs or invest more.

3. Conduct a Cash Flow Check

Cash flow is the lifeblood of any business, and ensuring that it’s steady is essential to financial health. Start the year with these cash flow best practices:

• Analyze last year’s cash flow trends. Identify months where cash flow was tight and develop strategies to prevent similar issues in 2025.
• Establish a cash reserve. Aim to have three to six months’ worth of operating expenses saved to cover slow periods or unexpected challenges.
• Improve accounts receivable processes. If you frequently experience delayed payments, consider implementing clear payment terms, offering early payment discounts, or charging late fees to keep cash flow consistent.

4. Optimize Expense Management

Even minor reductions in spending can significantly impact your bottom line. Take time to assess your expenses:

• Identify non-essential expenses. Review expenses for areas where you can reduce or eliminate spending without impacting quality or productivity.
• Negotiate with vendors. Reach out to key suppliers and service providers to see if you can negotiate better terms or take advantage of volume discounts.
• Automate recurring expenses and payments. Streamlining regular expenses reduces administrative workload and can help prevent costly late fees.

Effective expense management leads to a leaner operation, freeing up more capital for growth initiatives.

5. Invest in Financial Management Tools

Utilizing the right tools can make financial management simpler and more accurate. Consider the following investments for 2025:

• Accounting software. Programs like QuickBooks or Xero help track income, expenses, and cash flow while simplifying tax preparation.
• Payroll automation. If managing payroll manually, consider automation tools that ensure accurate tax withholding, reduce errors, and streamline reporting.
• Budgeting apps and forecasting tools. Many software options offer forecasting features to help visualize the impact of various financial scenarios on your cash flow.

Digital tools improve efficiency and help you make informed financial decisions, especially as your business grows.

6. Revisit Pricing and Profit Margins

Periodic pricing reviews are essential to ensure you’re charging what your products or services are worth. To start the new year strong:

• Analyze profitability. Review each product or service’s profitability and consider adjustments if profit margins are lower than desired.
• Research market rates. Ensure your pricing is competitive without undervaluing your offerings. Consider the value you bring to customers and adjust prices as necessary.
• Communicate pricing changes effectively. If you decide to increase prices, communicate changes clearly to clients, emphasizing the value and quality you deliver.

By aligning your pricing strategy with your goals, you can increase profitability and create a sustainable business model.

7. Prioritize Tax Planning Year-Round

Tax planning isn’t just a year-end activity—it should be integrated into your financial strategy all year. Here are some ways to stay tax-efficient:

• Review potential deductions and credits. Familiarize yourself with any new tax regulations or deductions for 2025 that may benefit your business.
• Evaluate business structure. As your business grows, certain structures may offer tax advantages. Consult with a tax professional to ensure your setup is optimal.
• Plan for quarterly tax payments. Avoid year-end tax surprises by making timely estimated payments and keeping detailed records of expenses.

Strategic tax planning can save your business money and reduce stress when tax season arrives.

8. Commit to Regular Financial Reviews

Finally, commit to regular financial reviews as part of your business management. Set aside time monthly or quarterly to assess your financial health, adjust your goals, and refine your strategy. During these reviews, focus on:

• Tracking progress toward your financial goals. Are you on track with your budget, cash flow, and profitability targets?
• Evaluating key performance indicators (KPIs). Metrics like profit margins, debt-to-equity ratio, and return on investment (ROI) give insights into your business’s financial health.
• Adjusting strategies as needed. Economic conditions and business needs can shift. Regularly reviewing your finances helps you stay adaptable and ready to seize opportunities.

 

Improving your business finances in 2025 starts with setting actionable goals and committing to regular, disciplined financial management. By taking the time to refine your budget, optimize cash flow, and ensure tax efficiency, you can create a solid foundation for a prosperous year ahead. Here’s to a financially healthy 2025—one goal, one improvement, and one successful quarter at a time!

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.

 

The IRS issues most refunds in fewer than 21 days for taxpayers who file electronically and choose direct deposit. However, some returns have errors or need more review and may take longer to process. The IRS works hard to get refunds to taxpayers quickly, but taxpayers shouldn’t rely on getting a refund by a certain date.

Things that can delay a refund:

• The return has errors, is incomplete or is affected by identity theft or fraud.
• The return needs a correction to the child tax credit or recovery rebate credit amount.
• The return has a claim filed for an earned income tax credit, additional child tax credit, or includes a Form 8379, Injured Spouse Allocation PDF.
• The time it takes a taxpayer’s bank or credit union to post the refund to the taxpayer’s account.

The IRS will contact taxpayers by mail if it needs more information to process their returns.

The fastest way to get a tax refund is by filing electronically and choosing direct deposit.

Taxpayers can check the status of their refund online.

To check the status of a refund, taxpayers should use the Where’s My Refund? tool on IRS.gov. If taxpayers file electronically, they should wait twenty-four hours before checking the status of their refund. If taxpayers file a paper return, they should wait four weeks before checking the status.

Loeffler Financial Group, along with the IRS representatives on the phone and at Taxpayer Assistance Centers can only research the status of a refund if:

• It’s been 21 days or more since the taxpayer filed the return electronically.
• It’s been six weeks or more since the taxpayer mailed the return.
• The Where’s My Refund? tool tells the taxpayer to contact the IRS.

 

Taxpayers should file their tax return by the deadline even if they cannot pay their full tax bill. Taxpayers who owe tax and don’t file on time, maybe charged a failure-to-file penalty. This penalty is usually five percent of the tax owed for each month, or part of a month that the tax return is late, up to 25%.

If an individual taxpayer owes taxes, but can’t pay in full by April 18, 2022, deadline, they should:

File their tax return or request an extension of time to file by the April 18 deadline.

• People who owe tax and do not file their return on time or request an extension may face a failure-to-file penalty for not filing on time. Loeffler Financial Group can file your extension for you per your request.
• Taxpayers should remember that an extension of time to file is not an extension of time to pay. An extension gives taxpayers until October 17, 2022, to file their 2021 tax return, but taxes owed are still due April 18, 2022.

To get an extension to file, taxpayers must do one of the following:

• File Form 4868 through your tax professional, such as one of the tax experts at Loeffler Financial Group
• Submit an electronic payment with Direct Pay, Electronic Federal Tax Payment System or by debit, credit card or digital wallet and select Form 4868 or extension as the payment type.

Pay as much as possible by the April 18 due date.

• Whether filing a return or requesting an extension, taxpayers must pay their tax bill in full by the April deadline to avoid interest and penalties.
• People who do not pay their taxes on time will face a failure-to-pay penalty.
• The IRS has options for taxpayers who can’t afford to pay taxes they owe.

Set up a payment plan as soon as possible.

• Taxpayers who owe but cannot pay in full by April 18 don’t have to wait for a tax bill to set up a payment plan.
• They can apply for a payment plan on IRS.gov.
• Taxpayers can also submit a payment plan request using Form 9465, Installment Agreement Request.

Interest is based on the amount of tax owed and for each day it’s not paid in full. Interest rates are determined every three months and can vary, based on type of tax; for example, individual or business-tax liabilities. Loeffler Financial Group is here to assist you with any tax questions you have.

Need to file your tax return still? Call 717-393-7366 to book your appointment with one of our tax experts.

 

What taxpayers should do if they have incorrect or missing documents?

Taxpayers should make sure they have all their documents before filing a tax return.

Taxpayers who haven’t received a W-2 or Form 1099 should contact the employer, payer or issuing agency and request the missing documents. This also applies for those who received an incorrect W-2 or Form 1099.

If they can’t get the forms, they must still file their tax return on time or get an extension to file. To avoid filing an incomplete or amended return, they may need to use Form 4852, Substitute for Form W-2, Wage and Tax Statement or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, Etc.

If a taxpayer doesn’t receive the missing or corrected form in time to file their tax return, they can estimate the wages or payments made to them, as well as any taxes withheld. They can use Form 4852 to report this information on their federal tax return.

If they receive the missing or corrected Form W-2 or Form 1099-R after filing their return and the information differs from their previous estimate, they must file Form 1040-X, Amended U.S. Individual Income Tax Return.

Most taxpayers should have received their documents near the end of January, including:

• Forms W-2, Wage and Tax Statement
• Form 1099-MISC, Miscellaneous Income
• Form 1099-INT, Interest Income
• Form 1099-NEC, Nonemployee Compensation
• Form 1099-G, Certain Government Payments; like unemployment compensation or state tax refund
• Letter 6419, 2021 Total Advance Child Tax Credit Payments
• Letter 6475, Your 2021 Economic Impact Payment

Incorrect Form 1099-G for unemployment benefits
Many people received unemployment compensation in 2021. Unemployment compensation is taxable and must be reported on the recipient’s tax return.

Taxpayers who receive an incorrect Form 1099-G for unemployment benefits they did not get should contact the issuing state agency to request a revised Form 1099-G showing their correct benefits. Taxpayers who are unable to obtain a timely, corrected form from states should still file an accurate tax return, reporting only the income they did receive.

Reconciling advance child tax credit or economic impact payments
People who need to reconcile advance child tax credit payments or claim the recovery rebate credit will need information about 2021 payments when they file.

These individuals must have the total amounts of advance child tax credit payments to receive the remainder of their child tax credit and the amount of their third Economic Impact Payment to claim a recovery rebate credit. Taxpayers should check their online account or review Letter 6419, 2021 Total Advance Child Tax Credit Payments, and Letter 6475, Your 2021 Economic Impact Payment, for their total payment amounts. This will help them file an accurate return. If they have lost or misplaced these letters, they can check their online account. Married spouses who received joint payments will need to log into their own online account or review their own letter for their portion of the total payment. If filing a 2021 return as married filing jointly, they should add the payments together to provide the total amount.

Loeffler Financial Group is here to help. Schedule a tax appointment with one of our expert tax advisors today, 717-393-7366.

 

September 10, 2021

Employees Who Work for Tips – If you received $20 or more in tips during August, report them to your employer. You can use Form 4070.

September 15, 2021

Individuals – Make a payment of your 2021 estimated tax if you are not paying your income tax for the year through withholding (or will not pay in enough tax that way). Use Form 1040-ES. This is the third installment date for estimated tax in 2021.

Partnerships – File a 2020 calendar year income tax return (Form 1065). This due date applies only if you were given an additional 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1065) or a substitute Schedule K-1.

S corporations – File a 2020 calendar year income tax return (Form 1120S) and pay any tax due. This due date applies only if you made a timely request for an automatic 6-month extension. Provide each shareholder with a copy of Schedule K-1 (Form 1120S) or a substitute Schedule K-1.

Corporations – Deposit the third installment of estimated income tax for 2021. A worksheet, Form 1120-W, is available to help you make an estimate of your tax for the year.

Employers – Nonpayroll withholding. If the monthly deposit rule applies, deposit the tax for payments in August.

Employers – Social Security, Medicare, and withheld income tax. If the monthly deposit rule applies, deposit the tax for payments in August.

 

Questions? Call one of Loeffler Financial Group Tax Advisors at 717-393-7366.