It may seem early to be looking for signs of Spring . . .but Personal Money Manager™ has already made a siting: First at a client’s home, and later in my own mailbox–the first TY2024 tax documents have arrived!
Maybe not as lovely as a crocus in bloom, the arrival of the first tax document has a special meaning for daily money managers / financial organizers like me (more here). It marks the start of a new tax season. And the promise that, with my help, it will again be calm and drama-free for my older adult clients.
Assisting with tax filing prep is an important part of my work with older adults. While every client needs a qualified tax preparer to do the actual tax returns and more, my role includes corralling tax documents, uncovering and organizing tax information, and communicating with clients’ tax preparers. I oversee and keep the tax prep process on track to completion.
While there will be more to say about tax preparation, here are some early bird tips garnered over my almost 17 years as Personal Money Manager™ They can get you started and perhaps help muster some enthusiasm for the upcoming season. (I promise—it’s not far off!)
- Set up a 2024 Tax File if you haven’t already. You may need to graduate to a small bin conveniently located where you sort your mail as more documents come in. (Investment firms should mail 1099’s by January 31.)
- Check in with your tax preparer. Would you like them to provide a tax organizer? Are fees changing? What about deadlines? Do you need to sign an engagement letter? It can be challenging to locate and start working with a new preparer as the tax season approaches.
- Start gathering information for potential deductions (like real estate taxes, medical deductions, donations). No need to wait. Before the tax deadline looms overhead, start assembling this potentially valuable information at your own pace:
- Request a print-out of prescriptions from all pharmacies you used in 2024, even for charges not put through your medical insurance.
- Tally your Amazon (and other supplier) orders for non-prescription medical expenses. (See IRS Publication 502 for more information.)
- Review your 2024 calendar for medical visits and calculate your medical travel expenses and mileage at 21 cents/mile. Look also for volunteer miles at 14 cents/mile.
- If you sold your home in 2024, piece together capital improvement information to reduce possible capital gain taxes. (Look here and IRS Publication 523.)
- Contact your local tax office to confirm the real estate tax payments made in 2024.
- Make sure you have filled in the details on receipts for your non-cash donations. Start with blank slips from the charitable organizations and Valuation Guide for Goodwill Donors. IRS Publication 526 contains more details.
Do you or your clients need hands-on help getting into gear for tax season? Looking for reliable and confidential assistance overseeing the process and digging into the document and information weeds? Please reach out to me to discuss how we can work together. (While I do not prepare clients’ tax returns, I have been trained as a volunteer tax counselor with the IRS/AARP Tax Aide program and bring that knowledge with me to benefit Personal Money Manager’s older adult clients.)
copyright 2025 by Karen R. Caccavo, all rights reserved