Four Things to Do Now to Make Filing Taxes in 2025 a Simple Process
It’s not quite the end of 2024 and tax season may seem like quite a way off. However, as a taxpayer and San Francisco business owner, there are things you can do now to prepare to file taxes in 2025. Taking an hour or two when your San Francisco business has some year-end down time may help filing next year that much easier. Here are four things you can do now to make filing taxes in 2025 an easy process.
Gather your tax records — Don’t wait until the day you sit down to file to prepare your documents. Start gathering your information now so that everything will be organized later. Make sure you include your W-2 forms from employers, 1099 forms from banks and other payers (including any income you earned as an independent contractor), and other documents include mileage and receipts. Remember that most income is taxable, which includes unemployment, refund interest, virtual currencies, and rental property income. Having everything organized may also help you discover tax credits you may not have remembered.
Verify your personal information and ITIN — Use this time to verify your contact information that the IRS has on file. For example, if you moved this year, make sure your new address is updated. You should also notify the Social Security Administration of any legal name change (marriage or divorce). You also want to check your Individual Tax Identification Number (ITIN) to assure it has not expired before you file your tax return.
Consult with a tax professional or attorney now — Once the new year hits, every CPA and tax attorney will be increasingly busier as the year goes on, especially as we get into the first few months of the year. If you have questions about your tax obligations, employees vs. independent contractors, or any other tax situation, take the time to meet with your tax professionals now while they are not in the midst of their busy season. This will also give you plenty of time to remedy any situation that may come up as a red flag.
Make sure you’ve withheld enough tax — Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. You may find you need to adjust your withholding and submit a new Form W-4 to your employer. It’s best to do that now rather than wait until you’re into 2025. You may also consider making estimated tax payments so that you are not saddled with money owed to the IRS in April.
Don’t wait until just weeks before April 15, 2025 to prepare your tax information for 2024. Use the year-end downtime to gather records, update your contact details and review the IRS website for necessary information. Always consult with an experienced San Francisco tax attorney if you have questions about your business or taxes. Doing this now will make the 2025 tax season a little easier.
Allison Soares is a partner and tax attorney at Vanst Law LLP. It doesn’t matter the issue: audits, collections, appeals, international disclosures, grumpy people— Allison enjoys fixing problems. In addition to her legal work, she has worked in accounting and utilizes that knowledge to her advantage while handling cases involving EDD audits from San Francisco to San Diego.
