As tax season approaches, many Haddon Heights families and business owners are preparing to meet with their Certified Public Accountant. Proper preparation not only makes the process smoother, but in 2025, it also ensures you take full advantage of several important tax updates.
Here are a few key steps to help your meeting go smoothly, along with notable changes for this year.
- Gather and Organize Your Documents
Collect W-2s, 1099s, mortgage interest statements, investment statements, and documentation for deductions or credits. Having everything organized saves time and allows your CPA to accurately assess your situation.
- Understand What’s New for 2025
Several federal tax updates may impact your return:
Higher Standard Deduction:
$15,750 for single filers
$31,500 for married filing jointly
$23,625 for head of household
Increased SALT Deduction Cap:
The state and local tax deduction limit has increased to $40,000 ($20,000 if married filing separately), which is especially relevant for New Jersey homeowners.
Retirement Contribution Increases:
401(k) contribution limits are now $23,500, with higher limits for those over 50. IRA income thresholds have also been adjusted, so eligibility may have changed.
Mileage Rate Increase:
The 2025 business mileage rate is 70 cents per mile, important for self-employed individuals and small business owners.
Understanding these updates ahead of your meeting allows for better planning and fewer surprises.
- Summarize Any Life Changes
Marriage, divorce, a new child, a new job, or the purchase of property can all significantly affect your tax return. Providing this information upfront helps your CPA make necessary adjustments.
- Track Deductions and Credits
Keep records of charitable contributions, medical expenses, education costs, and business expenses. With tax laws constantly evolving, maximizing eligible deductions requires careful documentation.
- Be Timely and Responsive
April 15 remains the filing deadline. Even if you are expecting a refund, filing early reduces risk and stress. If you owe, payment is due by April 15 to avoid interest and penalties, even if an extension is filed.
Preparing for tax season is a collaborative effort. By organizing your documents, understanding the 2025 changes, and communicating openly with your CPA, you can ensure a smoother process and position yourself for smarter financial planning in the year ahead. Contact Freedom Financial for all of your tax planning needs.
