How to Prepare for Your Individual Taxes: A Step-by-Step Guide from Freedom Tax & Business Services
As another tax season approaches, many individuals feel anxious or overwhelmed about gathering documents, understanding deductions, and avoiding costly mistakes. At Freedom Tax & Business Services, we believe that proper planning and organization can turn tax season into a smoother, more confident process. Use the checklist and tips below to prepare effectively — and don’t hesitate to reach out to us for help when needed.
1. Mark Important Deadlines & Know What Is Due
The standard filing deadline for federal individual tax returns (for the 2024 tax year) is April 15, 2025. Consumer Financial Protection Bureau+1
If you can’t submit your return by that date, you can file for an extension—normally to October 15, 2025—but note that an extension to file does not extend the time to pay taxes owed. Consumer Financial Protection Bureau+1
Keep state filing deadlines in mind too; many state returns are due the same day as federal.
If you anticipate owing, estimate and pay as much as possible by April 15 to reduce penalties and interest.
Tip: Add deadline reminders in your calendar now, so you aren’t scrambling at the last minute.
2. Determine Your Filing Status
Your filing status affects your tax rates, standard deduction, and eligibility for certain credits. Common statuses include:
Single
Married Filing Jointly
Married Filing Separately
Head of Household
Qualifying Widow(er) with Dependent Child
Make sure your status reflects your situation accurately. Choosing the wrong status can lead to paying more tax than necessary or triggering audits.
3. Gather & Organize Your Documents
A big part of stress during tax season comes from not having the right paperwork ready. Here’s a checklist to get started:
Income Documentation
W-2 forms from each employer USAGov+2TurboTax+2
1099 forms (e.g. 1099-NEC, 1099-INT, 1099-DIV, 1099-MISC) for freelance, interest, dividends, or other income streams Better Money Habits+2Accounting.com+2
Records of other income sources (taxable distributions, unemployment benefits, rental income, etc.) TurboTax+1
Statements for investment gains/losses
Documentation of Social Security, pensions, or other retirement distributions
Deduction & Credit Records
Mortgage interest, property tax statements, or real estate tax info IRS+3TurboTax+3USAGov+3
Medical expenses, casualty losses, or long-term care premiums
Charitable donation receipts with dates and amounts
Education expense records (Form 1098-T, receipts for tuition, fees)
Childcare expenses and provider information
IRS notices, prior year tax returns, and last year’s documents for reference
Records of contributions to IRAs, HSAs, or 401(k)s
For the self-employed: business expenses, receipts, mileage logs, home office allocation, etc.
Organizational Tips:
Use folders (physical or digital) for “Income,” “Deductions & Credits,” and “Miscellaneous.”
Keep each year’s files separately — you’ll want access back several years in case of an audit.
Save all documentation for at least seven years, especially for deductions or credits.
4. Adjust Withholding & Estimated Payments
A common issue is under-withholding, which leads to unexpected tax bills or penalties. Some strategies:
Use the IRS withholding estimator tool (or consult with your employer) to adjust your W-4 so your withholdings better reflect your tax liability.
If you have side gigs or freelance income, consider making quarterly estimated tax payments to avoid underpayment penalties.
Review any life changes (marriage, number of dependents, additional income) and adjust accordingly midyear.
5. Understand Credits & Deductions You May Qualify For
Many taxpayers miss out on valuable deductions or credits simply because they aren’t aware. Always check whether you qualify for:
The Earned Income Tax Credit (EITC) — refundable and designed for low to moderate-income workers. IRS+1
Child tax credits, education credits, and dependent care credits
Deductions for contributions to retirement accounts (IRAs)
Mortgage interest and property tax deductions, if you itemize
Medical expenses, charitable donations, casualty or theft losses
Business expenses and depreciation if you're self-employed
Also, weigh whether itemizing deductions yields more benefit than taking the standard deduction — for many taxpayers, the standard deduction is the simpler and better choice.
6. Choose Your Filing Method & Tools
You have multiple options:
DIY with Tax Software / E-file
Tax software can guide you step by step and reduce mistakes.
E-filing is faster and more accurate than paper returns.
If your income is below a certain threshold, you may qualify for IRS Free File or the IRS Direct File option.
Hire a Professional / Tax Preparer
A tax professional can help optimize deductions, credits, and reduce audit risk.
Ask prospective preparers about credentials (PTIN, EA, CPA), fee structure, and support after filing. Consumer Financial Protection Bureau+1
Free Assistance Programs
If your income is moderate, you might qualify for IRS programs such as VITA or TCE. Consumer Financial Protection Bureau+1
Virtual options are sometimes available via GetYourRefund or local volunteer programs.
7. Maximize Last-Minute Moves (Before the Deadline)
Even close to tax day, you still have options to lower your tax burden:
Make catch-up contributions to IRAs or HSAs (if permitted by IRS rules)
Harvest investment losses to offset capital gains — be mindful of the wash-sale rule.
Ensure charitable contributions are well documented
Double-check your return for errors, missed deductions, or omissions
File an extension if needed, but pay an estimate by the regular deadline to avoid penalties
8. After Filing — What to Do Next
Keep a copy of your return and all supporting documents for at least seven years.
Monitor your refund status (if applicable) using IRS tools.
If you owe, set a payment schedule or arrange with the IRS for installments.
Plan ahead for next year: adjust withholding or estimated payments as needed.
Consider scheduling a tax planning consultation with us to help you make strategic decisions during the year.
Why Work with Freedom Tax & Business Services?
At Freedom Tax & Business Services, we bring local expertise and personalized guidance to help individuals navigate the complexities of the tax code. From maximizing deductions to avoiding missteps, we’re here to help you with:
Tailored tax strategy and planning
Accurate and compliant preparation
Audit support, if needed
Ongoing guidance to minimize future tax liability
Let us be your partner this tax season. Book a consultation or drop by our office to ensure your return is handled with confidence and care.
Preparing early for tax season can reduce stress, improve accuracy, and potentially save you money. Follow this roadmap: know your deadlines, organize your documents, optimize deductions, pick the best filing route, and lean on professionals when needed.
If you're ready to get started — or simply have questions — contact Freedom Tax & Business Services today. We’d be honored to walk through your taxes together.