Preparing for tax season

TAMRA CLARK CHAMPION: Hello, and welcome to preparing for tax season hosted by U.S. Bank Goals Coaching. Now, before you go through this video today, I want to ask you to grab a pen and a piece of paper, because I'm going to give you a lot of great resources that you're going to want to take a note of as we go through the presentation. That way, at the end of the video, you can go and check out any of those resources available to you to help you prepare for your taxes. So grab a pen and paper before you get started, and thank you for being here. 
Let me tell you a little bit about myself. My name is Tamra, and I'm a goals coach with U.S. Bank. I've been in the financial services industry for more than 20 years, and I hold three coaching certifications, one from IPEC, the Institute for Professional Excellence in Coaching, one from the International Coaching Federation, and I also earned my health coaching certification from the Institute for Integrative Nutrition as a step in my own personal journey to wellness last year. 
As a goals coach with U.S. Bank, I provide education through financial wellness webinars like this one, but I also help clients one on one to build self-awareness and promote habit changes. And we do this by offering professional guidance and support to help you achieve your personal, financial, and professional goals, all of it at no cost. Goals coaching by U.S. Bank is designed to help you approach your goals with clarity and confidence. 
You don't need to be a customer. We don't sell any products or services. What we do is use coaching techniques and methodologies and behavioral science to help you build that strong foundation to support you in achieving your goals. And towards the end of the presentation, I'm going to share with you how you can connect with a coach. 
Thank you again for being here today. I hope you're going to leave this video feeling a little better prepared and more aware of different situations, deductions, and potential tax breaks that may benefit you when it comes to your individual situation. Let's get started. 
First, let's talk about the key dates to be aware of for 2025. On or by January 31, your W-2 and 1099 forms will be mailed or delivered. On April 15 of 2025, individual tax returns are due for most individuals. Now, some special circumstances may apply for some individuals. 
But this is also the deadline for making an IRA or HSA contribution for the 2024 tax year. On June 15, 2025, individual tax returns are due for U.S. citizens living outside the United States or Puerto Rico. And by October 16 of 2025, individual tax returns for those who received an extension are due. 
Also, it's worth noting that when you file for an extension on your taxes, you're going to be penalized with interest on the amount you owe during the requested extension period. I always like to make sure that my clients know that as well. Before we get too far ahead, I want to review some key terms related to taxes, which you may or may not already be aware of. 
So the first one is tax credit. This is a dollar-for-dollar reduction in the tax, which can be deducted directly from the taxes owed. Another common term are exemptions. This is the amount that taxpayers can claim for themselves, their spouses, and eligible dependents, and each exemption will reduce the income that's subject to tax. 
The third term is tax liability. This is the amount of tax that must be paid. You meet this through withholding estimated tax payments and payments made with tax forms. And then the final term that I want to review with you is your AGI, or adjusted gross income. This is your gross income that's reduced by certain amounts, such as a deductible, IRA contribution or a student loan interest. So there's a few key terms that you might hear or read about if you're filing your own taxes. 
Now, as a reminder, I'm going to be sharing a lot of links with you, so be sure that you note down the link at the bottom of this slide to our financial IQ library that provides you access to each of these that we're going to go through. But if you got married in the past year, you're going to want to learn about filing jointly and/or the head of household status now that you're officially a couple. 
If you bought a home, there may be some tax benefits you can itemize when you file, like mortgage interest. If you added to your family or grew your family, congratulations. A dependent is going to influence your taxes from newborns to college students. If you got a divorce, there might be tax implications and liabilities that you want to be aware of there as well. 
And if you began or finished college, whether you're paying tuition or paying off student loans, you'll want to know how to incorporate that into your filing as well. If you started a side hustle, you'll want to understand those implications, and if you're a contract worker, how that affects your taxes. 
If a family member passed away, and you are their representative or spouse, you should file taxes on their behalf. And if you invested in a tax advantaged account, such as an IRA, HSA, or 401(k), you'll want to discover possible implications before you file your taxes. 
Now, this list is not all encompassing, but if one or more of the life factors on this video screen appears to pertain to you, please take a moment to visit this website that we have available to you and get information on how to file. You can also find support and assistance from a tax professional or a licensed accountant as needed. 
Now, here's another great article. Nerdwallet published a list of 22 popular tax deductions and tax breaks for the 2024 tax year for taxes due on April 15 of 2025. I'm not going to go into all of them here, but you can check out the full list at the link provided on the bottom of this slide. 
I want to make sure that you're aware of at least a few of the common ones. For children under the age of 17, you might qualify for what's called the child tax credit, with $1,700 being potentially refundable. Also, retirement account contributions. We just mentioned that, but if you can deduct contributions to a traditional IRA or self-employed retirement account, you want to do that, but you want to be sure you stay within those contribution limits and rules. 
Also, educational expenses, as I mentioned a moment ago. Students can claim a deduction for tuition and fees that they paid, as well as interest paid on a student loan. Now, the IRS won't accept your deduction claim without that form 1098-T, which shows your education transactions, and form 1098-E has details on your student loan as well. 
Also, medical bills. Medical costs could provide some tax savings, but only if they total more than 7.5% of your adjusted gross income for most taxpayers. And then, of course, property taxes and mortgage interest. If your mortgage payment includes an amount that's escrowed for property taxes, that will be included on the form 1098 that your lender sends you, and that document will also show how much home loan interest you can claim on Schedule A. 
And then charitable donations. To ensure that your generosity pays off at tax time, keep your receipts for charitable donations. The IRS could disallow your claim if you don't have that verification. Also, if you have a home office and use your home regularly for business-related activities, you might qualify for a deduction there. You can deduct various other state taxes-- sorry. 
You can deduct various other taxes, including either state and local income tax or sales taxes up to $10,000, including property taxes. You don't need receipts for the sales tax. The IRS provides tables with average amounts that you can claim. And the tax on a major purchase, however, can be added to that table amount, so keep those receipts. But note that state income taxes paid should be on your W-2, and remember to add any estimated state taxes you paid during the year. 
Now, you can see this full list on the website an article at the bottom of this slide, so go ahead and visit nerdwallet.com to see the details on these deductions. Now, as coaches, we see a lot of clients procrastinate or put off preparing for their taxes, so I also want to offer you some behavioral science tips to help reduce the stress that comes at tax time for most of us. 
A good way to stay organized and be prepared is by building new organizational habits. I particularly like a time blocking and reward system as a way to help me stay on track using behavioral science. The first step here is to identify something that you want to complete. In this example, let's say you want to make sure that you file your taxes before the April 15 deadline, so you need to estimate how many hours you're going to need each week leading up to the deadline to get organized and prepared. 
And then the second step in this system is to schedule uninterrupted focus time on your calendar to complete the tasks of organizing and preparing. Now, you can also use technology or visual reminders on your phone or on a paper calendar, even, to help you stay on track, but I recommend that you make additional time available over what you estimate, because it doesn't hurt to get finished even earlier or sooner than planned. That would feel good, right? And you can file your taxes as early as February 1. 
Now, step three is the reward here, which is my favorite part. Once you've completed your scheduled task each time, reward yourself with something you love. This could be anything from enjoying your favorite warm beverage while you do it, or planning to meet a friend for lunch or dinner after you've done your chore, to watching an episode of your favorite show after you complete your work that day. 
What's important is that it's a reward that you can look forward to and that you enjoy. And also keep in mind, by breaking this up into small and manageable tasks leading up to the deadline, you're going to reduce the stress and overwhelm that many people associate with taxes. Now, let's take a quick look at all the information you'll want to have available when you do go to file your taxes. 
First of all, you're going to share some personal information when you file, including your name, your address, your birth date, and your Social Security number to start. You're also going to need to know the tax amount withheld from your paycheck, and you'll find this on the W-2 form that was provided by your employer. If you had any earnings outside of that W-2, or you work as a contractor, you'll also need your 1099 forms. 
And 1099 forms will also be for things like interest income from a bank savings account, brokerage account earnings, the selling of assets, like real estate, stocks, or investments, and/or if you collected unemployment during the year. Now, if you paid interest on your mortgage, tuition, or student loans, you're going to need those 1098 forms. And form 5498 should be at the ready if you've made any IRA contributions, and then you'll want to have form 1095-A ready for health insurance coverage. 
Also, don't forget to have your bank's routing number and your checking account number if you want the IRS to provide your refund directly to your bank account or want to pay your bill that way. And lastly, when you file electronically, you'll need last year's taxes in order to verify your identity. Now, let's look at a few more resources available to you if you get stuck or need help. 
Now remember, please take note of these links at the bottom of the screen if any of these resources seem like they may be helpful to you as I go through them. And please, get assistance if you need it. Don't be afraid to ask for help, including taking advantage of free resources. All of these links are available to you to help provide information that will make this just a little bit easier and less overwhelming for you. 
And the first one here is the IRS, or Internal Revenue Service, provides basic tax preparation to those who qualify through programs like Volunteer Income Tax Assistance, the VITA program, and Tax Counseling for the Elderly, also known as TCE. More information on these programs can be found by going to the IRS website listed on the slide. 
These programs were designed to help those who need assistance filing, such as those with disabilities, individuals who make less than $58,000, and those with limited English. The IRS also provides a free tax filing tool and other resources that can help you file and track your tax return. 
Now, the CFPB, or what's known as the Consumer Financial Protection Bureau, is a U.S. government agency that makes sure that banks, lenders, and other financial companies treat you fairly. And for their complete guide to filing your taxes, you can visit their website, CFPB, consumerfinance.gov website, and they will have a complete guide for you. It's really helpful and very thorough. 
And then the last resource on this slide are software resources such as TurboTax as one example. We give you a link to that here. But a software like TurboTax can help you to bulk up on your tax knowledge with free how to videos, insightful tips, tax calculators, and more to make it just that much simpler for you to go through the process. Now, before I tell you about our free goals coaching program, let's wrap up with a few coaching tips on preparing for your taxes throughout the year. 
Being proactive can help you to maximize your benefits and minimize any tax time surprises. Tax time is stressful enough without unpleasant surprises, so here are five helpful tips to prepare throughout the year so you're in good shape when it's time to file. 
The first one is to do an income tax projection to prevent surprises at tax time. Having a projection of your potential income tax ahead of time gives you a little more breathing room. So ask your tax professional or accountant to do a projection for you ahead of time. 
The second tip here is to find ways to reduce your tax liability by reducing your taxable income. So you can defer your tax liability or eliminate it entirely when you make qualifying contributions to financial vehicles, such as retirement accounts or plans, a health savings account, a Flexible Spending Account, HSA or FSA, and/or a 529 plan for educational expenses. 
And the third tip here is to take advantage of current gift and estate tax rates. There are tax exemptions that allow you to gift money to an individual tax free. A lot of people don't know this, but you can currently transfer $16,000 to an individual without any gift tax implication, and you don't have to be related. A couple can also collectively gift up to $32,000 to an individual this year, and you're free to make gifts year after year to multiple people. 
And then the fourth tip here is to consider charitable giving. Your tax deductible donations can reduce your taxable income, which is one tangible benefit of charitable giving. Not to mention it feels good, right? And to claim those donations, you'll need to itemize your deductions at tax time. So note that you only get a tax deduction for the year in which you make the gift. 
And then the last tip here is to work closely with a financial professional. Especially if your taxes are complicated, a financial professional can help you to see how different aspects of your finances-- for example, taxes, investments, and charitable giving-- can work together to help you work toward your goals. 
So share your vision, and take full advantage of their expertise. With a little preparation, you can be more strategic about your taxes year round. Now, let's start to wrap up with some key takeaways. And if you need help with goal setting and achieving, we can help you. 
I want to give you another behavioral science principle to help you this tax season to hit your goals, and this is called pre-commitment. This is a strategy where an individual voluntarily commits to choices or obligations in order to advance to achieve long term goals and avoid undesirable behaviors along the way. 
Essentially, a person commits to a specific action now to ensure they follow through later when faced with potential temptations or distractions, and this is a way to overcome impulsivity-- spending, for example-- and procrastination by limiting options in the future. So pay yourself first. Set up automatic transfers to your savings account as soon as you get paid, ensuring that you prioritize saving before spending on other expenses. 
Also, consider using budgeting tools to track your income and your expenses regularly throughout the year. And you can use a budgeting app-- there's plenty of great ones out there-- or a spreadsheet to help you identify areas where you might be able to cut back your expenses. 
And then also reduce your friction. Try to use automation, such as automatically moving a percentage of your paycheck, paying bills, things like that, or moving part of your bonus or tax refund directly into a savings account to avoid the stress and buy you some time to prioritize your decision making. 
Now, as coaches, we love to share tools and resources to help you save part of your upcoming tax refund or annual bonus, and I'm really excited to share that this is something that is now available to you, because research shows that 30% of people who plan ahead are more likely to reach their goals. And U.S. Bank has a digital tool that makes it easy to create a savings plan and stick to it. 
You simply select how much you want to save, and you'll be sent a reminder when the tax refund or bonus arrives, prompting you to complete the process. We've got some screenshots here on screen for you. But it's really as simple as 1, 2, 3, and so I suggest that you try it. 
Now, if you're at another financial institution, you can still use reminders to help you stick to your savings plan. And if you need assistance creating a goal and setting a timeline and planning some actions around any of the material that we've covered today, I want to encourage you to visit our goals coaching website and set up a time to speak with a coach about your individual goals and dreams. Let me tell you how to get started. 
We currently have six coaches on our team, and at the top of the slide here, you'll see a QR code that you can scan with your phone so you can set your first appointment or go to our website at www.usbank.com/coaching and meet our six coaches. We each have our own unique background, but we are all committed to helping you make meaningful progress towards your goals. 
So please go to our site, read our bios, and consider scheduling with one of us to get started. As I mentioned earlier, our coaching is a free service, and all sessions with the coach are 100% confidential. Also, you don't have to be a customer of U.S. Bank yet if you want to work with a coach. 
As coaches, we are trained in behavioral science and goal achievement, and we know what it takes to strengthen good habits and replace the less than helpful ones. We also have access to a variety of subject matter experts, which you can make use of, who can offer you valuable insights around various financial components, services, or tools that might help. And so whether your goal is financial, professional, or personal, we can help, and I hope that you'll consider us. 
And with that, I want to thank you so much for taking the time to watch this video today. I hope that you got something that was helpful for you. And again, you can rewind if you missed a resource and you want to go back and jot that down. I know that taxes can be very complex, but by learning how to prepare, being organized, and setting a goal to stay on track, you can make your tax season less stressful every year. 
So I hope that something I've shared here today will be helpful to you. Thank you again for joining me, and take good care. Have a great year.