Tax season is upon us
Are you ready?
Greetings Prosperous Souls,
Tax season is here in the United States. If you haven’t started gathering your documents, now is the time. Trust me, you’ll be thankful when April 15 arrives.
What is Tax Season?
In the U.S., tax season is when Americans calculate and file their taxes with the IRS (Internal Revenue Service). This process ensures that you’ve paid the correct amount of taxes for the previous year. Yay….
Unless you’re a numbers geek, tax season isn’t very fun. However, if you receive a refund, it can be an opportunity to reduce debt, build savings, or invest wisely. Planning ahead will make strengthening your finances a possibility.
Preparing your Taxes
Whether you hire a professional or file taxes yourself, the best way to prepare is by getting all your documents in order:
✅ Gather Income Documents
If you’re an employee, your employer must send you a W-2 form by January 31. If you haven’t received it yet, contact your employer.
If you’re self-employed, you should receive 1099 forms from your clients or business partners.
✅ Organize Your Write-Offs
If you’re a business owner or self-employed, tax deductions (write-offs) can reduce your taxable income. These include:
Home office expenses
Business travel
Equipment purchases
Health insurance (for self-employed individuals)
For a full list of deductible expenses, visit the IRS website.
✅ Know Your Filing Status
Your filing status (Single, Married Filing Jointly, Head of Household, etc.) affects your tax bracket and refund eligibility.
✅ Plan for Your Refund (or Payment)
If you expect a refund, decide ahead of time how you’ll steward it—whether it’s paying down debt, saving, or investing. If you owe taxes, plan ahead to avoid penalties.
Filing your Taxes
There are three main ways to file your taxes:
1️⃣ Hire a Professional
An accountant or tax professional can file your taxes accurately and help you maximize deductions. This is the most expensive option, but it can save you money in the long run if you have complex finances.
2️⃣ Use Tax Software
If your finances are straightforward, you can use affordable, easy-to-use software like TurboTax, H&R Block, or FreeTaxUSA. These programs walk you through the process step by step.
3️⃣ File Manually
The IRS offers free tax filing options for those with simpler tax situations. However, double-check your numbers to avoid penalties or audits.
Conclusion
Tax season isn’t the most exciting time of year, but it’s a necessary process. Failing to file on time can result in late fees or even legal consequences, so it’s best to stay ahead of the deadline.
📅 Important Date: Tax Day is April 15, 2025.
🚨 Beware of Tax Myths: There have been rumors about $5,000 refund checks being sent to every taxpayer due to government savings from the DOGE program—but there’s no official confirmation of this. Be wary of tax scams promising “guaranteed” refunds.
💬 Need Help? If you have tax questions or need guidance, schedule a free 15-minute call with me. As a recovering accountant, I’m happy to share my wisdom.
God bless your Prosperous Soul,
Stephen K. De Silva
About: Stephen K. De Silva is an author, speaker, and financial mentor. From 1995 until 2017, he served as the CFO of Bethel Church, and a member of the senior leadership team. Stephen’s blend of experience, training, and gifting make him a pioneer in the subject of money. You can reach Stephen at hello@prosperoussoul.com