As 2024 draws to a close, it’s time to prepare for filing your 2024 tax return. Cloreece Davis Knight, owner of Knight CPA Services, shares three key tax tips to help individuals navigate this critical season.
Tip #1: Get Organized. Gather all necessary documents, including W-2s, 1099s, receipts, and records of deductible expenses. Davis Knight says staying organized reduces stress and ensures no details are overlooked.
“So you don’t have to be a meticulous record keeper, but you have to have some paper system in place. Because you would be surprised how many tax returns are reviewed after comparing them to actual records and there are always a decent amount of deductions that weren’t met.”
Tip #2: Prepare early. Begin the process early to avoid last-minute scrambling. Review your financial records, familiarize yourself with any tax law changes, and calculate your potential tax liability to avoid surprises. Davis Knight says you can still make contributions to your IRA till April 15th.
“If you do it early enough, this will put you in a better situation to be prepared for that, and who wouldn’t want to keep their money instead of giving it to the government or the IRS?”
Tip #3: Hire a Tax Professional. Davis Knight says a certified tax expert can help you maximize deductions, ensure compliance, and minimize errors. Professionals can also guide you through complex tax situations, giving you peace of mind.
“So get professional assistance. It’s better to be safe than sorry and often times they can assist with educating you and giving you tax tips in areas that you have no knowledge about”
By following these tips, Davis Knight says taxpayers can streamline the filing process and position themselves for a smoother tax season.