Taxes 101: How to File with Confidence This Tax Season
For many Texans, tax season brings questions, paperwork, and more than a little stress. But filing your taxes doesn’t have to feel overwhelming or confusing.
In our recent TexTalk Webinar, “Taxes 101 – Understanding, Preparing, and Filing with Confidence”, we partnered with the tax professionals at Lawson & Company CPAs to break down recent tax law changes, answer common tax questions, and share practical strategies to help taxpayers feel more confident and prepared.
Here’s what every taxpayer should know heading into tax season.
What Has Changed in the Tax Landscape?
Recent tax law updates may impact how you file and how much you owe. Some of the most notable changes include:
Higher Standard Deductions
For many taxpayers, the standard deduction continues to be the most beneficial option, reducing taxable income without the need to itemize. These amounts have increased and are adjusted for inflation.
New Senior Deductions (Ages 65+)
Taxpayers age 65 and older may qualify for an additional deduction that stacks on top of the standard deduction, potentially lowering taxable income even further.
Temporary Deductions for Tips and Overtime
Certain workers who earn tips or overtime may be able to deduct a portion of that income—provided proper records are kept. Pay stubs and employer documentation are especially important.
Expanded Child Tax Credit
Families may qualify for a higher child tax credit, with a refundable portion available depending on income and eligibility.
Understanding which deductions and credits apply to your situation can make a meaningful difference when filing.
Common Tax Questions, Answered
Is Social Security Taxable?
It depends on your total income. For some taxpayers, Social Security benefits may not be taxable at all. For others, a portion may be included in taxable income based on IRS income thresholds.
Does Filing an Extension Increase Audit Risk?
No. Filing an extension simply gives you more time to file—it does not increase your chances of being audited.
Is it Better to Get a Refund or Break Even?
This comes down to personal preference. A refund means you paid more during the year than you owed, while breaking even means your withholding was closely aligned with your tax liability. Neither option is inherently better—it’s about what works best for your financial goals.
How Long Should I Keep Tax Records
A good rule of thumb is to keep supporting documents for at least seven years. Your actual filed tax returns should be kept indefinitely, as they’re often needed for future financial planning or loan applications.
Common Tax Mistakes to Avoid
Relying on Social Media or AI For Tax Advice
While online tools can be helpful, tax advice is highly individualized. Strategies that work for one person may not apply to another and could result in penalties if used incorrectly.
Not Updating Withholding After Life Changes
Marriage, children, job changes, or additional income can all affect how much tax you owe. Reviewing withholding after major life changes can help avoid surprises.
Forgetting About Side Income
Income reported on a 1099—no matter how small—is reported to the IRS. Properly reporting both income and related expenses is essential.
Assuming a Refund Means Everything is Correct
Even if you receive a refund, it’s important to review your return and understand the basics of how your taxes were calculated.
Strategies that May Help Reduce Taxes
Depending on your situation, proactive planning can help reduce taxable income over time. Common strategies discussed during the webinar included:
- Contributing to retirement accounts such as IRAs or 401(k)s
- Using tax‑advantaged accounts like HSAs
- Planning charitable giving strategically
- Coordinating tax planning with investment decisions
- Reviewing income timing and deductions year to year
For those with more complex finances—such as business owners or individuals with investment income—working with a qualified tax professional can help uncover additional planning opportunities.
Self-filing vs. Working with a Tax Professional
Online tax software can work well for straightforward returns. However, once your situation includes investments, side income, business ownership, or retirement planning, professional guidance may help ensure accuracy and uncover opportunities you might otherwise miss.
File with Confidence
Taxes may always come with a learning curve, but understanding the basics—and knowing when to ask for help—can make the process far less stressful.
Whether you’re filing on your own or working with a professional, Texans Credit Union is here to support your broader financial journey, every step of the way.
The content shared in this blog from the webinar should not be considered as financial, investment, or tax advice. Before making any investment or financial decisions, seek advice from professionals like personal financial advisors, tax advisors, or other experts who can provide guidance tailored to your specific financial situation. Insurance products are not insured by the NCUA and are not a deposit, product or other obligation of, or guaranteed by Texans Credit Union. Insured by NCUA. Equal Housing Opportunity. NMLS #530654.
