6 Ways To Get Ready for Tax Season Next Year

Tax Day is April 15, so unless you requested an extension, chances are you’ve already filed your taxes this year. But while you might want to put the whole tax season behind you, now’s a good time to prepare for next year.

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Here’s how to get ahead of your taxes, cut down on possible stress and possibly get your refund sooner.

Also see six ways to use your tax refund to make money.

Figuring out your tax withholding now will save you headache — and a potential tax bill — next year. The same goes for your estimated taxes if you expect to owe.

“Get your withholding and Estimated Taxes set [in] place to make sure you will not owe for 2025,” said Hubert Johnson, a tax attorney at Guardian Tax Law. “Additional tax payments and estimated taxes are due quarterly, and there are penalties for not paying enough taxes quarterly.”

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Owing is never fun, so if you’re worried you’re going to have a large tax bill next year, start planning around that now.

“If you’re employed, give your employer a new W4 — fill it out completely, paying special attention to the section for additional jobs and/or your spouse’s income,” said Kari Brummond, an accountant and IRS enrolled agent at TaxCure LLC. “If you’re self-employed, talk with your accountant about how you can reduce your tax bill for next year.”

Even something as simple as changing your withholding or contributing to retirement accounts could help lower your tax bill.

You might have to wait on certain tax documents until January or even February. But don’t let that stop you from getting your other documents together in advance.

“Start a digital folder now for receipts, income docs and deductible expenses,” said Paul Miller, CPA, founder of Miller & Company. “Your future self will thank you.”

Are you self-employed or a business owner? If so, get your bookkeeping set up now.

“If you’re not doing bookkeeping for your business, set up bookkeeping software so that you’re organized for next year — if you’re filing based on a stack of bank statements or receipts, you’re likely paying more for tax prep, and you’re probably missing tax deductions,” Brummond said.

You can use a bookkeeping software like QuickBooks or Xero if you want to simplify this.

Maxing out your retirement accounts isn’t just a good idea for your future financial stability. You can also get a tax break. For 2025, the IRA contribution limit is $7,000 ($8,000 if you’re 50 or older). The limit for 401(k) accounts is $23,500.