Tax season in Fort Worth can feel overwhelming for busy professionals and small business owners. Whether you run a plumbing business, manage HVAC crews, work in real estate, or handle insurance accounts, your CPA is there to make sure your taxes are accurate and that you pay no more than you legally owe. But often the things that get overlooked are the details that matter most. Being open and thorough with your CPA can make tax time smoother and even help you save money.
Below are five important things people forget to tell their CPA before or during tax season.
One of the first things many taxpayers overlook is life events that affect filing status and eligibility for credits. Things like getting married, divorced, having a child, or adopting can affect your filing status, the number of dependents you claim, and access to credits such as the child tax credit. Letting your CPA know about these changes gives them the context they need to accurately calculate your tax liability and find credits you qualify for. Experts recommend reviewing life events at the start of the year so nothing important gets missed.
Even if you do not think a personal change has tax consequences, it is better to share it and let your CPA decide. A new marriage, for example, could change your filing status in a way that saves you money.
It is easy to gather your W-2 forms and think that covers everything, but many taxpayers forget about other income streams. If you earned income from freelancing, side gigs, rental properties, investment dividends or interest, or received 1099 forms for miscellaneous income, this is important for your CPA to know. The IRS matches the income reported on your return with what employers and financial institutions report, so missing an income stream could lead to problems later.
Providing a complete list of all income sources ensures your CPA can report everything accurately and possibly identify opportunities to reduce taxable income with legitimate deductions.
Starting a business or side hustle is an exciting step, but it also carries tax implications. Whether it is a lawn care service you started on weekends or an expanded bookkeeping service, these activities can create business deductions, self-employment tax obligations, and quarterly estimated tax payments. CPAs emphasize the importance of sharing this information early so you avoid mixing personal and business finances and maximize deductions like business expenses.
CPA preparedness means they can help you choose the appropriate structure, such as sole proprietorship or LLC, and guide you on how to track income and expenses correctly throughout the year.
Deductions and credits are powerful tools for lowering your tax bill, but many people overlook them because they did not prepare documentation in advance. Common deductions include charitable contributions with receipts, home office expenses, retirement contributions, mortgage interest, education costs, and business expenses. The IRS regularly highlights that inaccuracies in credits and deductions are among the most common mistakes taxpayers make.
Bringing organized records of all potential deductions lets your CPA evaluate every opportunity to lower your tax burden. It also protects you if the IRS questions a deduction later.
Last year’s tax return is one of the best tools your CPA can use to prepare your current return. It shows carryovers like capital losses or credits that may reduce your current year tax. Many people forget to provide these prior returns or any IRS or state notices they received after filing. If you received an IRS notice, even if you think it was resolved, your CPA needs to see it. These notices often contain information about adjustments or corrections that need to carry over into the current year’s filing.
Keeping a folder of your past returns and any official tax correspondence makes your meetings with your CPA much more productive.
Tax season does not need to be stressful or confusing. The key to a smooth and successful tax filing experience is clear communication and good records. By sharing important life changes, all income sources, business activities, comprehensive deductions, and prior tax documents with your CPA, you empower them to prepare your return accurately and potentially save you money.
If you would like help gathering your tax information or want to make sure you are taking advantage of every available deduction, contact the team at Adam Traywick, CPA, for a personalized consultation. We are happy to help Fort Worth professionals and business owners tackle tax season with confidence.
