Take the measly 15 minutes to do a few crucial things and you'll keep more of your own money at tax time.
I remember the first time I filed my taxes like it was yesterday. I poured myself a glass of my favorite cabernet, uncrumpled all my receipts... and totally freaked out. It was a huge headache, and not just because that glass had turned into a bottle by the time I was done. Looking back, I shouldn't have beaten myself up about it, because taxes are complicated. It makes us put them off, then rush through them and never look back. That's going to change, starting now. Take the measly 15 minutes to do these crucial things, and start looking forward to mid-April.
1. Move Some Funds into an IRA
You need an individual retirement account, because it's an investment that grows without your having to pay taxes on the interest or other earnings. If you don't have one, you can open one with Fidelity, TD Ameritrade, or other banks, and you can handle it yourself online or have someone help you. Here's the brilliance of it during tax time: You can put money into an IRA up until the tax-filing deadline in mid-April but save on last year's taxes, the paperwork you're working on now. Say you put $7,000 into a traditional IRA today but designate it as a prior-year contribution (it's easy, I promise). The IRS will subtract that money from your overall taxable income. That means you pay less in taxes, if you're in the 22 percent tax bracket, for instance, you'll save around $1,540, just for putting money aside for your future. I love it when stuff works out like this!
2. Make a Choice About Itemizing
You've probably heard of the standard deduction, and I will grant you, it's way easier to check that box than it is to go through receipts and itemize your deductions. What either deduction does is reduce the overall amount you'll be taxed on, so you want that number to be as high as humanly possible, right? For a lot of folks, the amount the government allows you, roughly $15,000 for single people and $30,000 for married couples in 2026, sounds just fine. And it is, if you rent your place or don't have a lot of medical expenses or charitable donations. But for homeowners especially, listing everything, like how much you paid in mortgage interest, state income tax, and charitable gifts, might save you more. So, did you save statements and receipts? Yes? Add them up and see if the number is higher than the standard deduction. If you didn't, do it next year! The key is to think this through, that's how you keep more of your money.
3. Check Your Return Yourself
There are a lot of ways to get your taxes done. On paper (sorry, but ugh), using software that walks you through it, or with an accountant. I've used TurboTax, and I think TaxAct is good too; the price varies depending on how complicated your taxes are, and you pay separately to file state taxes. But however you do it, your taxes deserve a thorough look-over by Y-O-U. Are the basics, like your income and Social Security number, correct? Is your refund similar to what you've gotten in the past, and if not, do you know why? In the end, you are responsible for your return, and government studies have found that most paid preparers make errors on the returns they file. This year, be one of the super-savvy women who get it right!
An IRA is where tax savings meet retirement building. For more, read Roth IRA vs. 401(k): which is right for you? and explore First-Time Investors.