How to Save on Taxes Next Year—Yes, You Can Start Now
Let’s be honest—just hearing the word “taxes” probably makes your shoulders creep up a little. I get it. But picture this: it’s April next year and instead of cramming receipts into a shoebox and Googling random tax tips, you’re cruising into tax season, calm and ready.
That’s possible if you start early, and (bonus) you don’t have to be some numbers whiz to make a difference. Here’s how you can start now and set yourself up to save on taxes next year—future you will thank you, promise.
Get Organized Sooner, Not Later
I know, I know—nobody dreams of being the person with color-coded folders (okay, maybe one person does, but most of us don’t). But, having your paperwork in order is half the battle. Grab a file or open a folder on your computer.
Start collecting receipts, invoices, donation records, and anything you think might help when you’re tallying up deductions later. It’s not glamorous, but you’ll save time (and a headache) come spring.
Max Out Your Tax-Advantaged Accounts
If you have access to a 401(k), IRA, or HSA (that’s a Health Savings Account), now’s the time to make the most of ‘em. Every dollar you put in reduces your taxable income. Plus, these accounts often come with some sweet employer matching. Even bumping up your contributions a bit can grow into big savings by the deadline.
Adjust Your Withholding (So You Don’t Get Surprised)
Nothing stings like a surprise tax bill—spoken from experience. Take a second and look at your most recent paystub. Are you having too little (or way too much) tax withheld? The IRS actually has an online tool for figuring this out—worth a peek a couple times a year. Too much, and you’re giving Uncle Sam an interest-free loan. Too little, and you risk a mad scramble to pay up.
Track Your Deductions—Even the Small Stuff
Stuff like out-of-pocket work expenses, mileage for work, or even charitable donations—these little things add up. And no, you don’t have to keep them in a dusty envelope. There are tons of handy apps that let you snap a pic and log receipts on the fly. A couple minutes every week saves hours later on, trust me.
Think About Tax-Efficient Investments
If you’re investing or planning to start, now’s the time to get smarter about it. Certain investments (like municipal bonds) can be more tax friendly, and how you sell your stocks—or when—can make a real difference in what you owe.
If you’re not sure where to even begin, look into tax-efficient wealth strategies. This means making moves that grow your savings while minimizing how much the IRS takes later. A financial advisor or planner can help you sort this out so you’re not just winging it.
Don’t Wait to Ask for Help
Listen, there’s no shame in getting advice ahead of time. Whether it’s a tax pro, or even a trusted friend who’s “that person” with spreadsheets, having someone do a check-in with you now can save big bucks (and your sanity). No need to guess your way through the forms if you don’t want to.
At the end of the day, saving on taxes next year is totally doable. A few easy habits now, and you’ll glide through tax season feeling—dare I say it?—almost proud.
