Strategies To Consider Before Filing Your Tax Return
Before you file your tax return, it’s crucial to review prior-year tax strategies that can lower your overall tax liability and help you avoid costly mistakes. By taking a strategic look at last year’s income, deductions, and credits, you can uncover tax-saving opportunities and better position yourself for future years.
1. Review Prior-Year Tax Returns for Missed Deductions
Start by comparing your current situation to your prior-year tax return. Look for deductions you may have missed or that changed, such as:
Charitable contributions
Medical and dental expenses
State and local taxes paid
Job-related expenses (if applicable)
A careful review can reveal opportunities to amend a prior-year return and claim additional tax benefits.
2. Maximize Retirement Contributions
Contributing to tax-advantaged retirement accounts is one of the most effective tax strategies. For many plans, you can still contribute for the prior tax year up to the filing deadline:
Traditional IRAs may be deductible, reducing taxable income
SEP IRAs for self-employed individuals can provide large deductions
These contributions not only cut your tax bill but also build long-term savings.
3. Evaluate Eligibility for Tax Credits
Tax credits directly reduce the amount of tax you owe. Before filing, confirm whether you qualify for:
Earned Income Tax Credit (EITC)
Child Tax Credit
Education credits (American Opportunity or Lifetime Learning)
Reviewing prior-year income and dependency status can help ensure you don’t miss valuable credits.
4. Organize and Substantiate All Documentation
Gather all forms and records tied to last year’s activity, including:
1099s, W-2s, and brokerage statements
Receipts for deductible expenses
Records of estimated tax payments
Accurate documentation reduces audit risk and ensures you claim every legitimate deduction and credit.
5. Consider Amending Prior-Year Returns
If your review uncovers missed deductions, credits, or income reporting errors, you may benefit from filing an amended return. This can lead to refunds or help you correct issues before they trigger IRS notices.
By proactively using these prior-year tax strategies before filing your tax return, you can optimize your tax refund, minimize your liability, and strengthen your overall tax planning for years to come.
This is being provided for informational purposes only and should not be construed as a recommendation to buy or sell any specific securities. Past performance is no guarantee of future results, and all investing involves risk. The views expressed are those of Silver State Wealth Management and do not necessarily reflect the views of Mutual Advisors, LLC, or any of its affiliates. Investment advisory services offered through Mutual Advisors, LLC, DBA Silver State Wealth Management, an SEC registered investment adviser. Silver State Wealth Management nor any of its members, are tax accountants or legal attorneys, and do not provide tax or legal advice. For tax or legal advice, you should consult your tax or legal professional.
