Every year, tax season rolls around. And every year, people ask the same question: When should I start getting ready to file? If you live in Orange County, California, the answer might be sooner than you think.
Many people wait until January or February to start thinking about their taxes. But if you’ve ever found yourself rushing to gather paperwork at the last minute, you know that’s not ideal. Whether you’re dealing with personal income taxes, self-employment income, or more complex matters like estate and trust tax in Orange County, starting early can save you a lot of stress.
Here’s a practical guide to help you know when and how to begin preparing your taxes, especially if you want the process to go smoothly.
Don’t Wait Until January: The Benefits of Early Planning
It might seem odd to talk about taxes in the fall, but believe it or not, the best time to start preparing is before the year ends. That’s because tax planning and tax preparation are two different things. Tax preparation happens when you gather documents and file them. Tax planning, on the other hand, happens before December 31st, when you can still make changes that impact how much you owe.
Here’s what you can do in advance:
- Check your income and withholding. If you’ve had a big change this year (like a raise, a second job, or a major life event), you may want to adjust your withholding before the year ends.
- Organize your documents. Don’t wait for W-2s and 1099s. Start pulling together other documents like mortgage interest statements, charitable contributions, and records for deductions now.
- Meet with a tax professional. If you work with a CPA like Donna L. Stern, C.P.A., the earlier you meet, the more options you have. Early meetings can uncover tax-saving strategies that won’t be available in January.
January to April: The Traditional Filing Window
The IRS typically begins accepting tax returns in mid-to-late January. This is when most people start gathering their documents and contacting tax professionals. If you’ve already done your prep work in the fall, this part of the process will be much easier.
For people with straightforward returns, W-2 employees with few deductions, January or February might be the right time to file. But if your finances are more complicated, here’s why you’ll want to start even earlier.
Who Should Start Even Earlier?
Taxpayers with more complex situations should start preparing before the end of the year. This includes:
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Self-Employed Individuals
Freelancers, small business owners, and independent contractors need to track income and expenses all year long. Waiting until tax season to sort receipts and invoices is a recipe for mistakes. Plus, quarterly estimated taxes can sneak up on you if you’re not careful.
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Real Estate Investors
Do you own a rental property or flip houses? Then your taxes likely involve depreciation, capital gains, and a lot of documentation. The sooner you start, the better your chances of catching deductions and avoiding errors.
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Trust and Estate Filers
Filing estate and trust tax in Orange County can be especially complex. These returns have different forms, deadlines, and tax rates than personal returns. It’s essential to coordinate with a CPA who specializes in trusts and estates. Starting early ensures there’s enough time to gather court documents, K-1s, and financial statements.
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Anyone With a Major Life Event
Marriage, divorce, having a child, buying a home, or receiving an inheritance all impact your tax situation. These changes can affect your filing status, deductions, and tax credits.
Avoiding the Last-Minute Rush
Waiting until the last minute puts you at risk of:
- Missing deductions or credits
- Filing errors
- Needing to file an extension
- Delayed refunds
- IRS penalties if you underpay
By starting early, you avoid these problems. You also give your CPA enough time to ask questions, suggest changes, and double-check everything before the deadline hits.
What About Extensions?
Filing for an extension gives you until October 15th to submit your return. But, and this is important, it doesn’t give you more time to pay. If you owe taxes, payment is still due in April. So even if you file for an extension, you need to estimate your liability by April 15th to avoid interest and penalties.
Many people in Orange County file extensions because they’re waiting on documents like K-1s from partnerships or trusts. If this applies to you, communicate with your tax preparer early and often.
Local Factors That Might Affect Orange County Residents
Living in Orange County means dealing with California state taxes, which can be high compared to other states. It’s also common here to have income from multiple sources, real estate, investments, side businesses, which makes taxes more complicated.
If you live in Orange County and have:
- High property taxes
- Multiple sources of income
- A trust or estate in progress
- Investments across different accounts
…you’ll benefit from early tax planning and professional help.
How a Local CPA Can Help
Working with someone who understands the local tax environment makes a big difference. Donna L. Stern, C.P.A. has years of experience serving Orange County residents, especially those dealing with estate and trust tax in Orange County.
Here’s what a local CPA can help you with:
- Identifying deductions specific to California tax law
- Planning around high property taxes or capital gains
- Filing fiduciary returns for trusts and estates
- Navigating self-employment or multi-income households
- Avoiding penalties and audits
What You Can Do Right Now
If you’re not sure where to start, here’s a simple checklist:
- Schedule a meeting with a CPA before the end of the year
- Review your income and estimate your tax bracket
- Start collecting deduction-related documents
- Ask your CPA about any major life changes this year
- Make estimated payments if necessary
- Stay organized by keeping everything in one place
The best way to avoid tax season stress is to start sooner than you think you need to. You don’t have to know all the answers; that’s what your CPA is for. But you do have to be proactive.
Final Thoughts
So, when should you start preparing your taxes in Orange County?
Now. Or at least, well before tax season officially begins. Getting a head start means fewer headaches, less chance of missing out on deductions, and more control over your financial outcome. If you’re dealing with estate and trust tax in Orange County, don’t wait; those filings are time-sensitive and complicated.
Whether you’re self-employed, running a trust, or just trying to get ahead, Donna L. Stern, C.P.A. is here to help. With personalized attention and years of local experience, her office can help you plan smarter, file earlier, and breathe easier.