Tax season doesn’t have to be stressful—especially when you plan ahead. With a few simple habits, you can make tax time easier, maximize deductions and credits, and avoid surprises in April. Here’s a list of tax planning tips to help you or your business stay organized.
At Carpenter & Langford, PLLC, we encourage our clients to think about taxes as a year-round priority—not just a once-a-year scramble. Here’s how to get started:
Get Organized Early and Stay Organized
Start now. Create a digital or physical system to track receipts, income statements, charitable contributions, and other tax-related documents throughout the year. Starting now is easier to catch up six months vs 12 months. Use labeled folders (digital or physical) to store:
- W-2s and 1099s
- Bank and brokerage statements
- Receipts for deductible expenses
- Charitable donation records
- Previous tax returns
By maintaining organized records, you’ll save time and potentially uncover deductions or credits you might have missed otherwise.
Know Your Filing Status
Your filing status impacts your tax rate, eligibility for certain deductions, and even your standard deduction amount. Common statuses include:
- Single
- Married Filing Jointly
- Married Filing Separately
- Head of Household
- Qualifying Widow(er)
Major life events like marriage, divorce, birth, or death can change your filing status. If you’re unsure which category you fall into, the IRS offers an Interactive Tax Assistant to help you determine the best option for your situation.
Understand Your Adjusted Gross Income (AGI)
Your Adjusted Gross Income (AGI) is your total income minus specific deductions (like retirement contributions, student loan interest, or HSA contributions). AGI is a key number that affects:
- Your tax bracket
- Eligibility for credits (like the Child Tax Credit or Education Credits)
- The amount of tax you owe
By making strategic adjustments to reduce your AGI—such as contributing more to retirement accounts—you can potentially lower your tax bill.
Review and Adjust Your Tax Withholding
Federal taxes operate on a pay-as-you-go system. If too little is withheld from your paycheck throughout the year, you could end up owing money (and possibly face penalties). If too much is withheld, you may get a refund—but you’ve essentially given the government an interest-free loan.
Use the IRS Tax Withholding Estimator to check if you’re on track. If you need to make changes, submit an updated Form W-4 to your employer.
Keep Personal Information Current
Moved recently? Changed your name? It’s important to notify the appropriate agencies as soon as possible:
- Address changes should be reported to the IRS using Form 8822, the USPS, and your employer.
- Name changes due to marriage or divorce should be updated with the Social Security Administration.
These updates help prevent processing delays and ensure your tax return matches government records.
Save for Retirement—And Cut Your Taxes
Contributing to a retirement account doesn’t just help your future—it can lower your taxable income today.
Consider:
- 401(k) or 403(b) contributions through your employer
- Traditional IRA contributions
- Self-employed retirement options like SEP IRAs or Solo 401(k)s
Many of these contributions are tax-deductible, which means they directly reduce your AGI and your total tax liability.
Final Thoughts: Stay Ahead with a Tax Advisor
Tax planning is not just about April 15—it’s about making smart, proactive decisions all year long. At Carpenter & Langford, PLLC, we help businesses across Texas and beyond to optimize their tax strategy with personalized guidance and year-round support.
Want to take the stress out of tax season? Let’s talk.
Schedule your free Discovery Meeting with one of our tax professionals today or give us a call at (512) 795-0300.
