Tax Planning Tips for 2025: Start Early!

As the New Year approaches, effective year-end tax planning becomes crucial. Wealth adviser Judy Brown advises individuals to begin early by assessing their financial goals against current tax laws. Starting now, taxpayers should examine their financial positions, including their previous tax returns, and consider how changes in income or expenses may impact their tax obligations. By taking proactive steps, such as gathering documentation and consulting a tax professional, individuals can avoid potential penalties and track their progress toward retirement goals. Looking ahead, major tax changes are anticipated between 2025 and 2026 due to the expiration of the Tax Cuts and Jobs Act, which could affect tax rates and deductions significantly. Individuals should pay attention to these developments and engage in proactive tax projections to prepare for potential impacts on their financial landscape. Planning isn't a one-time task; it's an ongoing process that can lead to greater tax efficiency over time.