Tax season is around the corner, and we would like to share a few tips to help you prepare for your 2024 tax return.
- Gather all necessary tax documents related to your incomes and deductions as early as possible. Below is a list of popular tax forms and receipts for your
- Form W-2 for wages and
- Forms 1099-INT, 1099-DIV, or combined form 1099 for investment activities
- 1099-NEC for contract labor and other
- Form 1099-MISC for rental activity or other miscellaneous income
- Schedule K-1 for flow-through income from partnerships and S-Corps, or for fiduciary income from trusts and estates.
- Form 1099-R for pensions or distributions from IRA accounts and 1099-SA for distributions from your HSA account.
- SSA-Form 1099 for social security benefits
- Form 1098 – Mortgage interest statement
- Property tax receipts
- Charitable donation receipts
- Receipts of qualified medical expenses exceeding 5% of your AGI
- Check if you qualify for the following tax credits and collect proper documents:
- Child tax Credit, up to $2,000 per qualifying child under age 17 and refundable portion up to $1,700 in 2024 (income limitations apply).
- Child and dependent care credit
- Education Credits (American Opportunity or Lifetime Learning Credit)
- Energy efficient home credit
- Electric vehicle (EV) tax credit up to $7,500 for new EVs and up to $4,000 for used EVs, depending on the vehicle’s specifications and buyer’s
- You can also maximize your 2024 deductions by contributing to a Traditional IRA, SEP IRA, or other qualified retirement plans by April 15, 2025. Please review your 2024 income or consult your CPA and set aside a budget for this contribution.
- Taxpayers affected by Hurricane Beryl in July of 2024 may be able to claim a casualty loss deduction on their 2024 return without meeting the usual requirement that these losses exceed 10% of their adjusted gross income (AGI). To be eligible:
- You must not have received an insurance or other reimbursements to claim the loss.
- Each casualty is deductible once it exceeds a $500
- Gather all relevant documentation, including photographs, repair estimates, and insurance claims.
- The 2024 filing deadline is March 17, 2025, for business returns and April 15, 2025, for individual If you are unable to collect all necessary tax documents for your returns by the deadlines, you can file the appropriate form to request an extension, as follows:
For Individual Returns (Form 1040):
- File Form 4868 by April 15, 2025, to get an extension until October 15, 2025
- Pay any estimated taxes due by April 15, 2025, to avoid penalties and interest as the extension applies only to filing, not to tax payments.
For Business Returns:
- S Corporations & Partnerships (Form 1120-S or 1065): File Form 7004 by March 17, 2025, to get an extension until September 15, 2025.
- C Corporations (Form 1120): File Form 7004 by April 15, 2025, to get an extension until October 15, 2025; pay any estimated taxes due by April 15, 2025, to avoid penalties and interest.
For Trust Returns (Form 1041):
- File Form 7004 by April 15, 2025, to get an extension to September 30, 2025
Pay any estimated taxes due by April 15, 2025, to avoid penalties and interest as the extension applies only to filing, not to tax payments.
At Maddox Thomson and Associates, we specialize in advanced tax strategies designed for high-net worth individuals and their closely held businesses. Our experienced team can provide tailored tax solutions to maximize deductions, reduce tax liability, and stay IRS-compliant. Contact Us