Last-Minute Tax Prep Tips

About the author: Lamar Watson, CFP®, is a Fee-Only Financial Advisor in the Washington, D.C., area who works with clients virtually across the country. Dream Financial Planning is a Fiduciary Financial Planning firm specifically designed to help individuals at any stage of life take control of their finances and fulfill their dreams. Feel free to schedule a Free Consultation to learn how we use the DREAM Financial Planning Process ™ to help our clients achieve their goals. 

Filing your taxes is never fun. Whether working with a tax professional or doing it on your own, you may feel stress. With this guide, you’ll be better equipped to navigate the process of gathering their documents for filing your taxes.

What Documents Do I Need To Collect For Filing My Tax Return?

This checklist covers the key issues to consider when preparing to file one’s taxes, such as:

• Documents and information to gather for your sources of income.
• Documents and information to gather for potential tax deductions.
• Documents and information to gather for potential tax credits.
• Other important nuances to consider when preparing to file your taxes.

Tax Preparation and Tax Planning

Tax preparation is now part of the ongoing financial planning and Wealth Management program. This will be in addition to the Tax Report and Tax Planning we already generate for clients. We also use the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill. Feel free to contact us to see how we can help with your taxes.

With Tax Day right around the corner on April 15, it’s easy to feel overwhelmed. Even if you’re short on time, you can still file your taxes accurately and on time with focus and preparation. These last-minute tips will help you navigate the process efficiently and avoid unnecessary stress.

1. Gather Your Documents Quickly

The main task to focus on with Tax Day looming is to collect all your documents. They could include your W-2s or 1099s to report income, receipts for deductible expenses, and any relevant tax forms. Keeping them in one place helps avoid delays and errors as you prepare your return.

2. Don’t Overlook Deductions and Credits

In the rush to meet the deadline, many people miss out on valuable deductions and credits. Even if you’re short on time, it’s worth pausing to check whether you qualify for tax breaks, such as the earned income tax credit, the child tax credit, or education-related credits.

3. File for an Extension If Needed

If time is running out, filing for an extension can save you from late filing penalties. Submitting IRS Form 4868 gives you until October 15 to file your return.¹ However, an extension only delays the filing, not the payment. If you owe taxes, estimate the amount as accurately as possible and make a payment to avoid penalties or interest.

4. Review Your Return Carefully

Even under a time crunch, make sure to review your return before submitting it. Common errors, such as incorrect Social Security numbers, math mistakes, or forgotten signatures (for paper filers), can lead to delays or penalties.

5. File Electronically for Faster Processing

Filing your return electronically (e-filing) is quicker and more reliable than mailing a paper return. The IRS processes e-filed returns faster, and choosing direct deposit for refunds ensures you get your money sooner. According to the IRS, e-filers will typically see their refunds in less than 21 days.² If you’re in a hurry, e-filing is the best way to ensure everything is submitted on time without complications.

6. Set up a Payment Plan if You Can’t Pay in Full

If you discover you owe taxes but can’t pay the full amount immediately, don’t panic. The IRS offers payment plans and answers many frequently asked questions about payment plans on their website.³ While interest may apply, these plans often cost less than high-interest loans or credit card debt.

Filing taxes at the last minute is never ideal, but it doesn’t have to be chaotic. By staying focused, you can meet the deadline with confidence.

Different Ways You Can Work With Us

Wealth Management - Combines ongoing financial planning and investment management. The financial planning fee is waived if we manage at least $1,000,000 in investments for you. You can review our investment management fee structure here. Tax Preparation and the ability to create a Will or Revocable Trust-based Estate Plan will be included.

Ongoing Financial Planning - Starting at $400/month, our most popular program now includes tax prep. This is a good fit if you have several goals and want the option to manage your investments. We'll cover everything from spending, insurance, taxes, investments, retirement planning, and estate planning. Our goal is to give you and your family an easy-to-understand comprehensive plan to provide you with confidence you're making the right financial decisions.

One-Time Financial Plan With Ongoing Support - Starting at $4,800, this is an accelerated version of the service above with additional support for one year after your start date. This service requires prepayment for the year and is offered at a significant discount from the annual pricing for ongoing planning. Tax Preparation and the ability to create a Will or Revocable Trust-based Estate Plan will be included.

Tax preparation is now part of the ongoing financial planning program. This will be in addition to the Tax Report we already generate for clients and our work with the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill.

Three-Hour Ask Me Anything - This is a good fit if you have 2-3 goals you want help with. These three one-hour meetings need to be completed within three months. The fee for this service is $2,000. You also get a free 30-minute meeting to help us get started.

Financial Coaching - Our financial coaching program starts at $99/month. This is ideal for someone who is looking to simplify and automate their finances. We'll also serve as an accountability partner and help you overcome obstacles that may be stopping you from accomplishing your goals. You can learn more about our coaching program here. If you think this program might be a good fit for you, schedule a 15-Minute Demo.

Hourly Financial Planning -Billed at $400 per hour. For each hour of meeting time, we'll bill at least one additional hour for meeting preparation and follow-up.

Our Full-Service Process For New Clients

Net Worth and Budget

The first thing I do for new clients is assess their current financial situation. We do this with the aid of financial planning software. We review assets, liabilities, income, and expenses. If you'd like to test drive my comprehensive financial planning software, visit Right Capital and create a profile. View this Right Capital video to learn more.

Insurance

As a Fee-Only Firm, we don’t sell insurance or charge commissions. However, we like to review home, auto, and umbrella insurance to ensure you have the proper coverage. We’re happy to work with your existing agent or refer you to an independent broker to ensure you get the best deal. We also look at your employee benefits, long-term and short-term disability insurance, along with life insurance to make sure your family is protected.

Tax Preparation and Tax Planning

Tax preparation is now part of the ongoing financial planning program. This will be in addition to the Tax Report and Tax Planning we already generate for clients. We also use the IRS Withholding Calculator to help prevent our clients from getting a surprise tax bill.

Investments

Whether you want us to manage your investments or you want to manage them yourself and you're just looking for a second opinion, we can help. We'll help you optimize your investments to make sure you’re not leaving any money on the table. Here’s an example of the quantitative analysis I can do for your investment accounts where we also evaluate your current fees.

If you’d like to review your risk tolerance, complete our risk tolerance questionnaire. This will give you your personalized risk number as seen on page 1 of the sample portfolio above. Feel free to check out the article 10 Best Tips for Beginning Investors from U.S. News where I shared a few investment tips.

Retirement Planning

This is where we bring everything together. Take a look at the links below for examples of some of the deliverables we prepare for clients.

• Get Your Free Retirement Check Up
• Elements® Financial Monitoring App
• One Page Financial Plan
• Financial Independence Presentation

Estate and Legacy Planning

If you're looking for a cost-effective solution to get your estate planning documents in place, we can help. We have partnered with a leading Estate Planning platform to deliver high-quality Estate Planning documents for a fraction of the cost of working with an attorney. I included a blog post below that highlights the key documents that should be in your Estate Plan and my normal pricing.

What's In Your Estate Plan?

Revocable Living Trust-Based Estate Plan

• Individual - $1,600
• Couple - $2,100

Will-Based Estate Plan

• Individual - $900
• Couple - $1,400

I hope we get the opportunity to work together. If you'd like to see if any of these services are a good fit for you, feel free to schedule a free consultation or send me an e-mail.

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