Are You Prepared for Tax Day? A Checklist

It should come as no surprise that many Americans take a dim view of paying taxes.¹ Still, the saying coined by Ben Franklin more than 200 years ago—“Nothing is certain except death and taxes”—rings true today: Taxes are inevitable. The sooner you get started, the better prepared you’ll be.

As the April 15 federal tax filing and payment deadline approaches, it may be helpful to review our Current Rates and Brackets guide, and if you haven’t already filed, consider these six tax season tips:

Tax time, unfortunately, can involve a mountain of paperwork. Make sure you have all your important documents ready before you begin filing, so you can take advantage of every deduction available to you.

The IRS will start accepting returns in early 2025.² The documents you may need to file your taxes can include:

• Forms W-2, Forms 1099 (for contract work) and other tax forms showing income earned
• Previous-year tax returns
• Records of mortgage interest and property taxes paid
• Any childcare expenses or medical costs
• Records of charitable contributions

Work with your tax professional to help you determine the specific documents you’ll need to complete your taxes. It’s important to note that if you’ve changed your address or name in the past year, you’ll want to let the IRS and the Social Security Administration know.

The 2024 tax year ended December 31, but you still have time before Tax Day 2025 to max out some of your accounts and help reduce your taxable income for the 2024 tax year. For example, the deadline to contribute to an individual retirement account (IRA) or a health savings account (HSA) for the 2024 tax year is generally April 15, 2025. That means you may still be able to put more funds in these accounts—up to the IRS 2024 contribution maximums of:

• IRA: $7,000, plus $1,000 in catch-up contributions if you’re 50 or older at any time during the 2024 calendar year.³
• HSA: $4,150 for self-only coverage ($8,300 for family coverage) under a high deductible health plan, and another $1,000 if you were 55 or older at any time during the 2024 calendar year.⁴

What about your employer-sponsored 401(k) plan? The window to contribute the IRS maximum to this type of account for the 2024 tax year closed for many employees at the end of last year. However, for the 2025 tax year you can contribute up to $23,500, as well as a $7,500 catch-up contribution if you’re age 50 and over, at any time during the 2025 calendar year (or $11,250 for those age 60-63).⁵ So, if you are continuing to build your nest egg, consider saving more now. It can help you reduce your taxable income for 2025 tax filing purposes.

Note, however, that additional contribution and eligibility limitations may apply, meaning the maximum amount you may be able to contribute to an IRA, HSA or 401(k) plan may be less than the IRS maximums stated above. You should speak to a qualified tax advisor for more information on the applicable contribution rules.

If your financial situation has grown more complex or you simply prefer some assistance, consider working with a qualified professional at tax time. A tax professional can help you:

• Gather the right tax and financial data from your investment accounts
• Take advantage of any deductions or credits you’re entitled to
• Prepare your income tax returns
• Provide advice tailored to your unique financial situation

A tax professional can also provide you with income tax projections and help reduce the risk of unwanted surprises if your tax situation changes.

It’s never too late to start incorporating tax-efficient strategies into your longer-term financial plan. Year-round active tax management may help you save more for goals and keep more of what you’ve earned. For example: