As the year ends, here are key tax preparation steps: Organize receipts for deductions, use up FSA funds to avoid loss, set up direct deposit for faster tax refunds, and maximize retirement contributions to lower taxable income. Consider contributing to an IRA or 401(k) to qualify for tax credits like the Saver’s Credit. These simple steps can help you avoid tax penalties and ensure smooth filing for 2024 taxes.

Starting January 1, 2025, only certified energy-efficient products will qualify for tax credits. The IRS now requires manufacturers to label products with a unique identification number (PIN), which must be included on your tax return. If a contractor or retailer cannot provide a PIN for an item, it likely does not qualify. This change affects credits for energy-efficient home improvements such as water heaters, heat pumps, and insulated windows.

December 10: Employees Who Work for Tips – If you received $20 or more in tips during November, report them to your employer. December 16: Employers must deposit payroll taxes for November. Corporations must pay their fourth estimated tax installment for 2024.