Estimate the whole year
Gather recent pay statements and expected business, investment, or retirement income. Compare projected tax with withholding and estimated payments. Include a spouse’s income when relevant instead of reviewing each paycheck in isolation.
Check opportunities and deadlines
Review retirement contributions, qualifying deductions, and credit eligibility. Some actions must be completed by year-end; others have different deadlines. Confirm the rules for the tax year before scheduling payments or moving money.
Organize the story behind the numbers
List major changes such as a new job, child, home sale, inheritance, or business. Keep confirmations for tax payments and charitable gifts. Flag missing forms early and give your preparer the context as well as the documents.
A practical example
A salaried employee begins freelance work halfway through the year. A year-end review can identify income with no withholding and allow a discussion of estimated payments or a withholding adjustment.
What to gather
- Recent pay statements and income estimates
- Tax payment confirmations
- Retirement and charitable contribution records
- Notes on major household or financial changes
Official references
General educational information, not individualized tax, legal, or investment advice. Federal rules are summarized; state rules and your circumstances may differ. Check the rules for your tax year before acting.