Money Smarts Blog
Last-Minute Tax Tips: Do's and Don’ts for Maximizing Your Refund
Feb 18, 2025 || By Jordyn Courson, Assistant Branch Manager, Kewanee Branch
If you haven’t filed your taxes yet, don’t panic! There’s still time to get organized and make smart financial decisions before the deadline. Here are some essential last-minute dos and don’ts to help you maximize your refund and avoid costly mistakes.
DO:
✅ Plan your time wisely: Rushing through your return increases the chance of errors. Set aside dedicated time to file, and gather all necessary documents, like W-2s, 1099s, and last year’s tax return.
✅ Reduce your tax liability: A last-minute contribution to a traditional IRA can lower your taxable income, potentially reducing what you owe and increasing your refund. Plus, you’re building your retirement savings — win-win!
✅ Consider life changes: Events like marriage, divorce, adopting a child, or supporting a dependent parent can impact your tax benefits. Review any recent changes in your life that may qualify you for additional deductions or credits.
✅ File electronically: E-filing is faster, safer, and more accurate than paper filing. The IRS offers free e-file options, or you can use tax software or a professional preparer.
DON’T:
🚫 Overlook income: Even if you didn’t receive a W-2 or 1099, all income must be reported. The IRS has ways to track missing income, and forgetting to include it could lead to penalties.
🚫 Skip the double-check: One of the most common filing mistakes is an incorrect Social Security number. Before submitting, review all personal details, including bank account information if opting for direct deposit. And don’t forget — your return isn’t valid unless it’s signed!
🚫 Opt for a prepaid debit card: If you’re due a refund, choose direct deposit instead. Prepaid cards often come with hidden fees for activation, transactions, and customer service. While some tax preparers offer faster refunds with prepaid cards, waiting a little longer for direct deposit ensures you get every penny you deserve.
If you’re feeling overwhelmed or unsure, seeking help from a trusted tax preparer is a smart move. It’s better to get professional assistance than risk an audit. And if you’ve already filed but think you made a mistake, many preparers offer free return reviews.
Don’t let tax season stress you out — follow these tips, file with confidence, and make the most of your refund!
Last-Minute Tax Tips: Do's and Don’ts for Maximizing Your Refund
Feb 18, 2025 || By Jordyn Courson, Assistant Branch Manager, Kewanee Branch
If you haven’t filed your taxes yet, don’t panic! There’s still time to get organized and make smart financial decisions before the deadline. Here are some essential last-minute dos and don’ts to help you maximize your refund and avoid costly mistakes.
DO:
✅ Plan your time wisely: Rushing through your return increases the chance of errors. Set aside dedicated time to file, and gather all necessary documents, like W-2s, 1099s, and last year’s tax return.
✅ Reduce your tax liability: A last-minute contribution to a traditional IRA can lower your taxable income, potentially reducing what you owe and increasing your refund. Plus, you’re building your retirement savings — win-win!
✅ Consider life changes: Events like marriage, divorce, adopting a child, or supporting a dependent parent can impact your tax benefits. Review any recent changes in your life that may qualify you for additional deductions or credits.
✅ File electronically: E-filing is faster, safer, and more accurate than paper filing. The IRS offers free e-file options, or you can use tax software or a professional preparer.
DON’T:
🚫 Overlook income: Even if you didn’t receive a W-2 or 1099, all income must be reported. The IRS has ways to track missing income, and forgetting to include it could lead to penalties.
🚫 Skip the double-check: One of the most common filing mistakes is an incorrect Social Security number. Before submitting, review all personal details, including bank account information if opting for direct deposit. And don’t forget — your return isn’t valid unless it’s signed!
🚫 Opt for a prepaid debit card: If you’re due a refund, choose direct deposit instead. Prepaid cards often come with hidden fees for activation, transactions, and customer service. While some tax preparers offer faster refunds with prepaid cards, waiting a little longer for direct deposit ensures you get every penny you deserve.
If you’re feeling overwhelmed or unsure, seeking help from a trusted tax preparer is a smart move. It’s better to get professional assistance than risk an audit. And if you’ve already filed but think you made a mistake, many preparers offer free return reviews.
Don’t let tax season stress you out — follow these tips, file with confidence, and make the most of your refund!
