New Year, New Tax Season: How to Get Organized for Filing
January marks a fresh start—and for many, that includes preparing for the upcoming tax season. Whether you’re an individual taxpayer or a small business owner, getting organized now means fewer headaches and a smoother filing process later. The earlier you start, the more control you’ll have over deadlines, deductions, and decisions.
Here’s how to kick off the year with a solid plan and stay ahead of tax season.
1. Gather the Right Documents Early
Before you can file, you need your paperwork in order. Begin collecting and organizing the following:
For Individuals:
- W-2s from all employers
- 1099s for freelance work, interest, dividends, and other income
- Form 1098 for mortgage interest
- Investment income statements
- Charitable donation receipts
- Records of medical expenses, education costs, or childcare (if applicable)
For Businesses:
- Profit & Loss statement and Balance Sheet
- Year-end bank and credit card statements
- Payroll reports and contractor 1099-NECs
- Receipts for business-related expenses
- Vehicle mileage logs
- Asset purchases and depreciation schedules
- Digital or physical folders—just pick a method that keeps everything in one place and clearly labeled.
2. Know What Deductions and Credits You Can Take
Tax laws change, and so do the deductions and credits available each year. Don’t leave money on the table by assuming you know what applies—consult a CPA to review your eligibility.
Common deductions and credits may include:
- Standard vs. itemized deductions
- Self-employment deductions (home office, internet, supplies)
- Retirement contributions
- Child and Dependent Care Credit
- Education credits (like the American Opportunity Credit or Lifetime Learning Credit)
- Energy efficiency upgrades (especially if recent federal programs apply)
This is also the perfect time to update your CPA on any life changes—marriage, divorce, a new baby, a home purchase, or a change in business income.
3. Avoid the Most Common Tax Filing Mistakes
When it comes to tax prep, even small errors can cause big problems.
Be mindful of these common pitfalls:
- Incorrect or missing Social Security numbers
- Missed 1099 income from side gigs or freelance work
- Over- or under-reporting business deductions
- Filing late—or not at all
- Forgetting to sign your return (yes, it happens!)
A CPA can review your return to catch these mistakes and ensure you’re filing correctly and completely.
Let’s Start the Year Right
At Rugg CPA, January is about preparation—not panic. We help our clients gather the right documents, take advantage of every credit and deduction, and file with confidence. Whether you’re expecting a refund or bracing for a bill, we’ll help you get organized and on track.
