Why This Tax Expert Says You Should Think About Taxes All Year Long

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It could make your life easier during tax season and save you money. 

At this point, many Americans are focused on filing their taxes. After all, ’tis the season for finishing up tax returns and, ideally, waiting for refunds to arrive via direct deposit or mail.

But thinking about taxes is something you should actually do all year long, and not just during the filing season, says Mark Steber, Chief Tax Information Officer at Jackson Hewitt. Doing so could not only make it easier for you to file your return in the winter or spring, but it could also result in a lot of savings for you on a whole.

It’s not just a seasonal thing

It’s a good idea to think about taxes all year round, says Steber. And for many people, that simply boils down to keeping good records.

This is an especially important thing to do when you’re self-employed, Steber explains. That’s because people who are self-employed and own small businesses might have numerous expenses they can deduct. You might, for example, spend money every month on internet service, office supplies, and travel to client sites to do your job as a freelance marketing consultant. Those are all deductible expenses. And so it’s important to keep solid, organized records of those receipts.

But that’s not the only reason why taxes should not just be a seasonal thing. The right tax planning, says Steber, could lead to more overall savings.

Let’s say you meet with your accountant in June and they point out that your income has increased due to not higher wages, but factors like added interest income in your savings account or capital gains in your brokerage account. At that point, your accountant might be able to advise you on ways to offset that higher income to limit your tax liability. That could include pumping more money into a tax-advantaged savings plan, like a 401(k) or IRA account.

Find an accountant who’s available year-round

Many people seek out tax help during the filing season and only need help during that time. But Steber says it’s a good idea to find an accountant who can be available to help you at any point during the year. That way, if questions or concerns arise, you can simply set up an appointment to sit down and talk.

That said, finding the right accountant can be tricky. So it’s important to ask the right questions and to not be afraid to interview multiple professionals before landing on one to trust.

As Steber says, “You need to find the person who fits your needs, and that doesn’t just mean tax knowledge…they need to match your personality and be convenient.”

It’s also a good idea to find an accountant who doesn’t just talk, but listens. You might have several financial goals that a lower tax burden could help you achieve. Working with the right accountant could get you closer to them, especially if you’re willing to make the effort and think about taxes throughout the year — and not just in the months leading up to mid-April.

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