How to Conduct a Financial Check-Up Before Tax Season
With the right tools, strategies, and mindset, you can step into tax season with confidence, knowing your finances are in tip-top shape.
Hello Discerning Parents and Future Graduates,
As tax season creeps closer, it’s time for a reality check—on your finances, that is! Think of this as your financial wellness exam, but without the awkward paper gown. Whether you’re saving for college, retirement, or just trying to make sense of where your money is going, a pre-tax-season financial check-up is the perfect way to stay ahead of the game.
Step 1: Gather Your Financial Health Records
Before you start your check-up, collect all relevant financial documents:
Tax returns from last year
W-2s, 1099s, and investment income statements
Retirement account statements
529 plan or other college savings account summaries
Receipts for deductible expenses (e.g., medical bills, charitable contributions)
Pro Tip: Use budgeting tools like Monarch Money to track spending and savings in one place.
Step 2: Evaluate Your Budget and Savings Goals
Ask yourself:
Are you on track with your 2025 savings goals?
Are you allocating enough to your retirement accounts?
How’s your progress toward that big college tuition bill?
Action Item: Adjust your monthly contributions if needed. If you’ve fallen behind, don’t panic—small, consistent changes can make a big impact. If you don’t have one, consider starting a budget - they are like financial maps. They help direct where our money goes and ensure we reach our financial goals safely.
Step 3: Maximize Tax-Advantaged Accounts
Take advantage of tax-deferred or tax-free accounts to reduce your taxable income:
Retirement Accounts:
Contribute the maximum allowed to your 401(k) or IRA.
For 2025, IRA limits are $6,500 ($7,500 if 50 or older).
College Savings Accounts:
Fund 529 plans to cover qualified education expenses tax-free.
Check if your state offers a tax deduction for contributions.
Pro Tip: If your employer offers a matching contribution, don’t leave free money on the table!
Step 4: Review Your Tax Strategy
Take a close look at potential tax deductions and credits, such as:
Child Tax Credit
Education Tax Credits (like the AOTC or Lifetime Learning Credit)
Medical and charitable contribution deductions
Pro Tip: Many education-related expenses, like tuition and fees, could qualify for tax credits. Don’t miss out!
Step 5: Look Ahead to Tax Season
Make a checklist for tax season readiness:
Schedule time with a tax professional or financial planner if your situation is complex.
Identify gaps in your financial plan and create an action list for 2025.
Set calendar reminders for key deadlines, like April 15 (Tax Day) and FAFSA updates.
A little pre-tax season preparation can save you a lot of headaches—and maybe even some money. With the right tools, strategies, and mindset, you can step into tax season with confidence, knowing your finances are in tip-top shape.
Ready to fine-tune your finances before tax season? Schedule a Getting Acquainted Call today, and let’s create a plan that keeps your family on track for college and retirement goals.
Warm regards,
Julie Bray
Your Family's College and Retirement Champion
GW Financial, Inc.
This content is developed from sources believed to be providing accurate information and is provided by GW Financial, Inc. It is not intended to be used as investment, tax, or legal advice. The information presented is for general education and informational purposes only and should not be construed as a solicitation or recommendation. Please consult with a qualified professional regarding your specific circumstances.