Your guide to reducing tax time stress from getting ready to file, to finding the right solution or tax pro.

This is a guest post from Tiffany Huntington, EA. Tiffany has been in the tax industry since 2012 from working in a traditional full-service firm, to driving critical programs with LegalZoom’s Tax department, and supporting industry leaders. She is passionate about streamlining operations, maximizing efficiency and the client experience, as well as sharing her knowledge to fellow tax pros and taxpayers around the world. Check out more of Tiffany’s content here.

Tax time is almost here. In fact, the IRS opened its Free file option earlier this month, and the official start to tax season was announced as January 27, 2025.

However, it’s easy to get overwhelmed with where to start and the many options for what software or tax pro to use. Not to mention trying to remember everything that happened in the prior year. For most, tax time is an additional burden we don’t want to deal with.

Let me help make it easier for you! Here are a few things you need to do to get ready to file.

Take a Breath

It’s going to be okay, and you will get through this.

Collect Your Tax Documents

Most tax documents (e.g., W-2s, 1099s) will come in by the end of January, but if you have complexities such as brokerage accounts or are a shareholder in a company (receiving a K-1), you could be waiting for documents for a few more months.

Most documents come in digitally these days via email or online portal accounts, but you may also receive documents through mail. Be sure that your physical and email addresses are updated with anyone you anticipate may be sending you a tax document (e.g., current and prior employers, anyone you did subcontract work with, financial companies, etc.)

Have a spot to keep all of your documents together. There’s nothing worse than digging through your stack of papers or computer files trying to find all the documents you received. I recommend downloading and scanning them to a file on your computer.

Finish Bookkeeping

If you have business activity, it’s important to track all of your income and expenses to correctly report your activity as well as to maximize the outcome of your return by eliminating the risk of missing important deductions.

Hopefully, you’ve kept up with this throughout the year, but don’t fret because most people don’t.

Reconcile all of your business activity to make tax prep easier (and have a better idea of what to expect).

If you don’t already have one, start looking for an accounting solution to make your life easier for next year’s filing.

Find a Tax Solution or Pro

When I first started in the tax industry, it seemed like there were only a small handful of options – it was either using the well-known “big box” companies or using a local tax preparer. With the changes in the industry, and the technological and remote world we live in now, there are so many options it’s hard to even know where to start.

While the cost is an important factor, it’s more important to consider your complexities, goals, and needs. For some with a single W-2, a free file option may make sense. For others, you may need a more robust online solution or a tax pro that you can build a close relationship with to support you every step of the way.

Determine if You Need a Solution or a Pro

If you’re looking to save on costs and maybe don’t have major complexities, an online solution may make the most sense. As I mentioned, there are countless options out there now. Referrals are always a great way to start, but you may also consider leveraging a comparison tool, such as Tax Shopper, to help narrow your options based on your unique needs.

As someone who has worked for a small traditional accounting firm, a large big box SaaS company providing tax services, and an industry leader providing complex support, I’ve used numerous software and seen both sides of how the experts behind the scenes work to support their clients, as well as understand the customer experience and pain points.

That’s why I’m here to say that there is significant value that comes with using a tax pro that you may not otherwise get using an online platform (despite the promises to provide you with someone if you pay for a more premium package). Specifically, reasons you may want to steer away from an online solution are:

• You want to have a close relationship with a pro who truly knows and understands your history, your goals, and your needs and commits to helping you solve complex issues, plan ahead, and stay proactive versus reactive. Yes, oftentimes you may pay higher fees, but the value you receive, mixed with the peace of mind and, more than likely, the tax savings almost always outweighs the costs. Many firms are switching away from after-the-fact hourly billing to reduce the surprise of fees.
• You have complexities that require serious strategies and planning, such as investments, real estate, complex businesses, foreign activities or digital assets, or multiple state returns, just to name a few. Yes, some software can handle these items, but they typically only do it based on the information you provide. Tax pros take continuing education to stay up to date with tax laws and know what to look for to ensure your activity is reported correctly.
• You have other complex tax issues, such as an incorrectly filed return that needs to be amended, you’ve received IRS notices that may require representation, you have unfiled returns, etc. Your needs will determine what type of pro you need, but they can help you reduce penalties, communicate on your behalf, and catch you to get you back on track so you can sleep better at night.

Summary:

Tax time doesn’t have to be stressful. The more organized and prepared you are, the better off you are when it comes to filing your taxes, saving you on filing and prep fees, and understanding what to expect and how to maximize strategies to be successful ahead of time.

Whether you choose to use an online solution or a tax professional, do your research and ask for referrals.

Did you find this helpful? Be sure to Tiffany’s blog for more great content.