Category Archives: Taxes

How to Make Next Year’s Tax Season Stress-Free

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Tax season just ended a couple weeks ago, and while preparing for next year’s tax return is probably the last thing you want to think about – it’s important to stay organized and make any adjustments for next year now, while it’s still fresh on your mind. Even though April 15th comes around every year like clockwork, it tends to sneak up and turn into a last-minute scramble for many of us. Here are a few tips on how to prepare for next year’s tax season now, to make things less stressful and more manageable later.

Make a Tax-Related Documents Checklist

An easy way to prepare for tax season is to make a simple checklist of the information and documents you will need to receive before you file. A checklist will help ensure you file accurately and keep an eye on what’s still outstanding.

Below are some examples of documents you might need to file your taxes next year that you can start putting aside this year, depending on your situation:

  • Documents related to childcare or dependent care expenses.
  • Receipts for books, tuition, and other education expenses if you’re a student or teacher.
  • Medical and prescription receipts.
  • Charity donation receipts or proof of payment.

Check out this IRS webpage on common documents and tax forms you might need to file your taxes. It’s important to remember that this isn’t an all-inclusive list and not all listed documents and forms will apply to everyone.

Decide How to Organize Your Tax Records

Are you more of a physical or digital recordkeeper? Choosing a method for organizing your tax-related documents makes it more likely that you will organize documents as you receive them.

A few options for organizing your tax-related documents can be a physical folder, digital folder on your device, or an accordion folder – especially if you have many categories of documents.

Track Income and Expenses Monthly

Tracking income and expenses is especially important if you do side gig or freelance work or own a small business – self-employment income is not the same as income reported on a W-2. Tracking can be done with a spreadsheet, a budgeting app, or something as simple as the notes app on your phone. Setting time aside to track income and expenses monthly can help you avoid surprises when it’s time to file and assist you in planning ahead.

Keep Track of Life Changes That Could Impact Taxes

Don’t forget about any career changes, getting married, or your first-time home purchase come tax time! Aside from changes to legislation, life events are one of the main causes of impacts to your tax outcome. They can affect your refund or how much you may owe the IRS.

Here are some life events that might impact your tax outcome:

  • Getting married
  • Growing your family
  • Starting a new career or experiencing job loss
  • Buying or selling a home
  • Retiring

The IRS has resources that explain the potential tax impact of various life events.

Create a Plan if You’re Expecting a Refund

Having a plan for a tax refund before you receive it is an important and often overlooked aspect of tax season preparation. Without a plan, it’s common for tax refunds to be spent on impulse purchases or go to everyday spending as opposed to long-term financial goals. Having a plan for any funds you get back at tax time will help you know exactly what to do when the refund arrives.

If you want to make the most of your refund by saving, making a large purchase, or planning for your financial future – First Financial is here to help!

Benefits of Preparing Early

There are numerous benefits to preparing for tax season early:

  • Stress Relief: Tax season stress usually comes from feeling unprepared or rushed, especially as the deadline gets closer. Getting started ahead of time can help you file with confidence – and not second-guessing whether you filed all your documents.
  • Avoiding Errors: Rushing through your taxes can lead to errors – such as skipped documents, incorrect numbers, or even missed deductions.
  • More Time to Prepare: Being ready to file early gives you time to plan. Especially in the case of owing money – if you know you usually owe each year, you can start putting aside some money into a savings account all throughout the rest of this year to avoid scrambling at the last-minute next year.

With a few smart habits, you can make sure that tax season doesn’t catch you off guard next year.

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*A First Financial membership is available to anyone who lives, works, worships, volunteers or attends school in Monmouth or Ocean Counties. A $5 deposit in a base savings account is required for credit union membership prior to opening any other account. Other terms & conditions may apply, see credit union for details.

Budget Check Up: Tax Time Is the Right Time

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Every year, about 140 million households file their federal tax returns. For many, the process involves digging through shoe boxes or manila folders full of receipts; gathering mortgage, retirement, and investment account statements; and relying on computer software to take advantage of every tax break the code permits.1

It seems a shame not to make the most of all that effort.

Tax preparation may be the only time of year when many households gather all their financial information in one place. That makes it a perfect time to take a critical look at how much money is coming in and where it’s all going. In other words, this is a great time to give the household budget a checkup.

Six Step Process

A thorough budget checkup involves six steps.

  1. Creating Some Categories. Start by dividing expenses into useful categories. Some possibilities: home, auto, food, household, debt, clothes, pets, entertainment, and charity. Don’t forget savings and investments. It may also be helpful to create subcategories. Housing, for example, can be divided into mortgage, taxes, insurance, utilities, and maintenance.
  2. Following the Money. Go through all the receipts and statements gathered to prepare your taxes and get a better understanding of where the money went last year. Track everything. Be as specific as possible, and don’t forget to account for the cost of any lattes on the way to the office each day.
  3. Projecting Expenses Forward. Knowing how much was spent per budget category can provide a useful template for projecting future expenses. Go through each category. Are expenses likely to rise in the coming year? If so, by how much? The results of this projection will form the basis of a budget for the coming year.
  4. Determining Expected Income. Add together all sources of income. Make sure to use net income.
  5. Doing the Math. It’s time for the moment of truth. Subtract projected expenses from expected income. If expenses exceed income, it may be necessary to consider changes. Prioritize categories and look to reduce those with the lowest importance until the budget is balanced.
  6. Sticking to It. If it’s not in the budget, don’t spend it. If it’s an emergency, make adjustments elsewhere.

Tax time can provide you with an excellent opportunity. You have a chance to give your household budget a thorough checkup. In taking control of your money, you may find you are able to devote more of it to the pursuit of your financial goals.

Need some help with preparing your future financial plan? Contact First Financial’s Investment & Retirement Center by calling 732.312.1534.  You can also email mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

  1. IRS.gov, 2025

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

Common Tax Errors to Avoid

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Navigating the U.S. tax system can be challenging. How you will file depends on your income and filing status, as well as which tax deductions and credits you can claim. Your taxes are your responsibility, even if someone assists you in filing them.1 As you prepare your taxes, here are some common filing issues that you may be able to manage with a bit of preparation.

Keep in mind that this article is for informational purposes only. It’s not a replacement for real-life advice, so make sure to consult your tax, legal, and accounting professionals before modifying your strategy. Remember, tax rules are constantly changing, and there is no guarantee that the treatment of certain existing rules will remain the same.

Error 1: Overlooked Side Income

Taxpayers must claim any income they’ve received in a tax year. One area that some taxpayers overlook is claiming side money that is in addition to their normal salaries. If you receive income from efforts outside your regular wages or self-employment, then you are obligated to report what you receive.

This money usually isn’t reported on a 1099 or W-2 and can include income from the following sources (and more): 2

  • Hobbies that yield a profit
  • Bartering for services or property
  • Forgone interest from below-market loans
  • Canceled debt, including discounts on mortgage loans
  • Social Security benefits to spouses and dependents (subject to filing status and income)
  • Unemployment compensation

Error 2: Unrealized Tax Breaks

Tax breaks can help you manage the taxes you owe or change your liability, resulting in greater benefits for you. While deductions are one form of a tax break, others include tax credits, exemptions, and certain tools designed to help you manage your tax burden. 3

Error 3: Wrong Filing Status

Your filing status can greatly impact your taxes because it defines your standard deduction and tax brackets. A common reason people choose an incorrect status is that their status has changed during the tax year. Before filing your taxes, be sure that you’ve updated your tax paperwork to reflect any changes to your filing status.

The five tax filing statuses are:

  • Single: Taxpayers who aren’t married, are divorced, or are legally separated (as state law dictates).
  • Married Filing Jointly: Taxpayers who are married and will file a combined joint return. Widow(er)s can typically file a joint return within the first tax year of losing their spouse.
  • Married Filing Separately: Taxpayers who are married and choose to file separate tax returns, which may or may not decrease their tax liabilities.
  • Head of Household: Taxpayers who are typically single and pay at least half of all home expenses for themselves and a qualified person.
  • Qualifying Widow(er) with a Dependent Child: Taxpayers whose spouse has died within the past two years and who have a dependent child, assuming other qualifications are met.4

Error 4: Incorrectly Claimed Dependents

Taxpayers can claim dependents for whom they are financially responsible during a tax year. The IRS defines a dependent as a “qualifying child” or “qualifying relative.” Taxpayers can no longer claim personal exemptions for each dependent, and they can miss out on other tax benefits by incorrectly claiming or forgetting a dependent. Be aware that if you have a blended family in which you share children with another taxpayer, you could end up accidentally claiming children when only one parent would be able to do so.5,6

Error 5: Not Having Proof of Purchases

Your paperwork is crucial for filing taxes correctly and includes everything from your pay slips to receipts. Beyond helping you file taxes, your documents also serve as proof of the claims you make on your return. Should the IRS find any errors or choose to audit you, you’ll need these records to back up the numbers.

A partial list of items to have on hand for verifying your financial records includes receipts, mileage, documents on life events, and medical and expense records for home improvements.7

Error 6: Not Accounting for Income

Your or your family’s income is the key determinant of how much you’ll pay in federal taxes. The IRS will tax you at a rate depending on the total you report.

In Conclusion

Filing your taxes can be a complex responsibility, and accidental errors can be easy to make. By being diligent, carefully strategizing, and keeping tight records, you can improve your ability to file taxes in a timely fashion while attempting to follow all of the federal and state guidelines. Even if you’re choosing to work with a tax professional, you are responsible for making sure you correctly file your financial details.

Remember, if you have any questions about your financial life, we’re here to help you navigate this complicated landscape. We always welcome collaborating with your tax professionals to align the strategies you take across your financial priorities. You can call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results. Consult your financial professional before making any investment decision. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your financial professional for further information. These are the views of FMG Suite, LLC, and not necessarily those of

the named representative, broker/dealer, or investment advisor and should not be construed as investment advice. Neither the named representative nor the named broker/dealer nor the investment advisor gives tax or legal advice.

Sources: 1-7 IRS.gov, 2024

Preparing for Tax Season

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Preparing for tax season can feel overwhelming, but it doesn’t have to be. With the right planning and advice, you can make the process smoother and maximize your returns. At First Financial, we’re here to guide you every step of the way, whether you’re filing as an individual, a couple, or a small business owner. Plus, take advantage of exclusive member discounts to make this tax season your most successful.

1. Preparing as an Individual

Filing your taxes as an individual doesn’t have to be overwhelming. Start by gathering all necessary tax documents, such as W-2s, 1099s, and other relevant income statements. Double check that you’ve received all forms for your accounts – including savings, investments, and retirement. Utilize tools like First Financial’s online banking to access financial statements and other important documents. Consider tracking charitable donations, student loan interest, or medical expenses to maximize your deductions.

2. Preparing as a Married Couple Filing Jointly

For married couples filing jointly, communication is key. Sit down with your spouse to review all income sources, deductions, and credits you might qualify for. Common credits for joint filers include the Earned Income Tax Credit (EITC) and if you have children, the Child Tax Credit.

Discuss future financial planning as a team. Maximizing retirement contributions or taking advantage of education-related tax breaks could save you money now while setting you up for success down the road. Filing jointly often provides higher income thresholds for deductions, so do your research and take full advantage of these benefits.

3. Preparing as a Small Business Owner

Small business owners have unique tax considerations. Begin by organizing all receipts, invoices, and business-related expenses from the year. Key deductions include office supplies, travel expenses, and even home office deductions. Use accounting software or work with a tax professional to ensure accuracy.

If you’re self-employed, don’t forget to account for estimated quarterly tax payments made throughout the year. Staying organized and proactive can help you avoid penalties and make the filing process smoother. Organize documents throughout the year in a labeled file binder or cabinet so everything can be easily found when filing.

Exclusive Member Discounts

First Financial is here to help you file your taxes early with exclusive, member-only offers on tax services.

  • TurboTax: Save 20% and file confidently from the comfort of your home. TurboTax guarantees the maximum refund and provides access to tax experts to assist or file for you.
  • H&R Block: Save up to $25 with an H&R Block expert. Get the largest possible refund or your money back, with expert help available in person or remotely.
  • PLUS: After filing through one of the above ways, enter the Love My Credit Union Rewards Tax Time Sweepstakes for a chance to win $10,000 after 4/15/25. Don’t miss the opportunity to also win a monthly prize of $1,000 throughout tax season!*

General Tips for a Successful Tax Season

  • Check All Accounts for Tax Statements: Ensure you’ve received all necessary tax forms – including those for bank accounts, mortgage interest statements, investments, and retirement accounts.
  • Organize Your Documents Early: Staying organized helps streamline the filing process and reduces stress.
  • Plan Financially with Your Partner: Open conversations about maximizing deductions and credits can help everyone save.
  • File Early: Avoid the last-minute rush and reduce the risk of identity theft by submitting your taxes early.

Maximize Your Tax Season with First Financial

At First Financial, we’re committed to helping you make the most of tax season with exclusive member discounts and financial resources. Don’t forget to subscribe to our First Scoop Blog for ongoing financial advice and strategies to keep your finances on track.

*TurboTax Offer: Visit http://turbotax.intuit.com/ for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2024. Discount applies to TurboTax federal products only. Actual prices are determined at the time of print or e-file and are subject to change without notice. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. H&R Block Offer: H&R Block Offer: void if sold, purchased, or transferred and where prohibited. No cash value valid at participating U.S. offices only A new client is an individual who did not use H&R Block or Block Advisors office services to prepare their 2024 tax return. Discount valid only with or for preparation of an original 2024 personal Income tax return. Coupon must be presented prior to completion of initial tax interview. Discount may not be combined with any other offer or promotion. Expires October 15, 2025. OBTP# 13696-BR ®2024 HRB Tax Group, Inc. All tax situations are different. Not everyone gets a refund. See hrblock.com/guarantees for complete details. ©2024 Love My Credit Union Rewards Sweepstakes: NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 18 years or older who are members or employees of a U.S. credit union. Ends 4/15/25. To enter and for Official Rules, including odds and prize descriptions, visit https://taxservices.lovemycreditunion.org. Void where prohibited.

Year End Tax Planning Tips

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A main reason people get so anxious around tax time is that they’ve delayed so many important things: Like organizing their paperwork. Contacting their accountant. And taking advantage of opportunities that could lessen their tax burden.

While you’re on your own for tackling the first two, we can help you with the last point – taking advantage of opportunities that could lessen your tax burden. In fact, there are a number of things you can do that could potentially reduce next year’s tax obligations. Let’s take a look.

First, let’s look to losses. If you think your investments will produce capital gains – whether short or long-term – you can offset these with capital losses.

For assets that you hold less than a year, any gains – considered short-term – these are taxed at ordinary rates from 10% to 37%. You can offset these with short-term losses.

For assets that you hold longer than a year – considered long-term – any gains are taxed at a top rate of 20%, which you can reduce by … you guessed it … long-term capital losses.

Now, if your losses are greater than your gains, good news: You can deduct up to $3,000 in capital losses against your ordinary income on that year’s tax return and carry forward any unused losses to future years.

Because of this, you might want to avoid short-term gains, since these are taxed at higher rates. To do so, if you believe you will have a short-term gain for the year, try to either offset it with a short-term loss or consider holding the asset for at least a year, when they will become long-term assets and taxed at a lower rate.

This requires that you review your portfolio regularly and estimate your gains and losses. Most capital gains and losses are triggered when you sell the asset, offering you control over the event. However, others — mutual funds, for instance — are difficult to predict as they are made up of a number of assets. If you find assets that have performed poorly, consider using them to offset your gains, as it will reduce your capital gains tax.

Keep in mind that it’s beneficial to elect a loss before a gain, because you can carry over unused losses to future years, whereas capital gains are taxed in the year that they occur.

As tax laws change often and are complex, consider speaking with a tax professional to help you manage your tax burden. You can call or email the financial professionals in the First Financial Investment & Retirement Center at 732-312-1534, mary.laferriere@lpl.com or maureen.mcgreevy@lpl.com

 Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. First Financial Federal Credit Union (FFFCU) and First Financial Investment & Retirement Center are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using First Financial Investment & Retirement Center, and may also be employees of FFFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of FFFCU or First Financial Investment & Retirement Center.

Securities and insurance offered through LPL or its affiliates are:

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal.

LPL Financial does not offer tax advice or services.

This material was prepared by LPL Financial, LLC

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Things to Do ASAP in Preparation for Tax Season

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It’s only January, but April 15th (AKA: Tax Day) will be here before you know it. One of the smartest things you can do is begin to prepare everything you’ll need to file sooner rather than later. Here are a few places to start.

Get Your Personal Information Prepared: If the personal information on your tax forms isn’t correct, it can be a nightmare. Be sure you know your Social Security Number and that it appears correctly on your forms, and if applicable – your spouse and children’s Social Security Numbers as well. It’s also a good idea to keep last year’s return nearby in case you need it for reference and to ensure everything matches up.

Organize All Your Documents in One Place: Be sure you have access to all of this year’s income documents that you will need to file your return, and keep them in one spot (a file folder labeled for this tax season or a digital folder on your computer where all the documents are scanned in together). Documents you’ll need are your W-2, and any other sources of income like rental income, dividends, or unemployment. If you’re a homeowner with a mortgage, you’ll also want to have your mortgage interest statement available.

Keep Your Receipts: If you’re a small business owner or self-employed, you’ll need to file a Schedule C with all of your business expenses. Be sure you have kept your business receipts and expenses from the past year, and that you store them all together in a place where you can easily locate them to file this year.

Decide How You’ll File: Now is the time to choose between doing your taxes on your own or if you’d rather pay a professional. Decide now, because as it gets closer to April 15th – tax professionals may get backed up and not be available to file your return on time. If your taxes aren’t overly complicated and you decide to file on your own through TurboTax or H&R Block, First Financial members can save money as well as enter this year’s grand prize sweepstakes once you file!*

Need More Time? File an extension. If you don’t think you’ll have everything ready by April 15th, you can file for an extension with the IRS for October 15th. However, if you owe – you most likely will still need to pay what you’ll owe by the April 15th deadline. Learn more and complete the IRS tax extension form here.

Getting ready for tax season early will simplify the process as it draws closer to Tax Day. For more financial tips and resources, subscribe to our blog or monthly member e-newsletters.

*TurboTax Offer: Visit turbotax.intuit.com for TurboTax product guarantees and other important information. Limited time offer for TurboTax 2023. Savings are on TurboTax federal products only. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit, TurboTax and TurboTax Online, among others, are registered trademarks and/or service marks of Intuit Inc. in the United States and other countries. Other parties’ trademarks or service marks are the property of their respective owners. H&R Block Offer Void if sold, purchased, or transferred and where prohibited. No cash value. Valid at participating U.S. offices only. A new client is an individual who did not use H&R Block or Block Advisors office services to prepare their 2023 tax return. Discount valid only with or for preparation of an original 2023 personal income tax return. Coupon must be presented prior to completion of initial tax interview. Discount may not be combined with any other offer or promotion. Expires October 15, 2024. OBTP#13696-BR ©2023 HRB Tax Group, Inc. NO PURCHASE NECESSARY. Legal residents of the 50 United States (D.C.) 18 years or older who are members or employees of a U.S. credit union. Ends 4/15/24. To enter and for Official Rules, including odds and prize descriptions, visit https://taxservices.lovemycreditunion.org. Void where prohibited.