Tax Prep Tips Every Individual Should Know Before Filing

As spring arrives, it’s time to think about warm weather, blooming flowers, and your taxes. Whether you’ve filed for years or it’s your first time, getting a head start can make things easier.

In Tennessee, tax season begins in January and runs through mid-April, so getting your paperwork together early can help you avoid last-minute headaches.

Tax time can feel overwhelming, but it’s also a great opportunity to check your finances and plan for the year ahead. Preparing your taxes doesn’t have to be complicated. With the right steps and a little organization, you can get through it without the stress.

What to Know About Income Taxes

Income taxes are a big part of life in the U.S., and understanding how they work can save you a lot of stress when tax season rolls around. These taxes help fund essential public services like schools, roads, emergency services, and more, making them vital for community well-being.

The federal income tax system is progressive, which means your tax rate increases as your income does. Simply put, the more you earn, the higher the percentage of your income you’ll pay in taxes. For example, if you’re in a higher tax bracket, you won’t pay that higher rate on your entire income—only the income that falls within that bracket.

State Income Taxes: Tennessee’s Exception

If you’re living in Tennessee, you’re in a bit of a tax break: the state doesn’t collect a state income tax on wages or salaries. So, as a Tennessee resident, you don’t have to worry about a state income tax deduction from your paycheck, which is a nice bonus.

However, while you’re off the hook for state income tax, that doesn’t mean you’re free from other taxes. You’ll still need to pay your federal taxes (which can vary depending on your income and filing status) and potentially local taxes, depending on where you live or work.

Some cities or counties may impose taxes on top of federal and state requirements, so it’s a good idea to check with your local government or use a tax preparation service to confirm your obligations.

Smart Tax Prep Tips

Starting early makes everything smoother. Here’s how to get organized:

Gather Your Paperwork
Start by gathering your W-2s, 1099s, investment statements, and any other records showing your income. If you have a mortgage, student loans, or charitable donations, grab those documents, too. Keeping everything in one place—like a folder or a safe digital file—will save you time.

Look Back at Last Year
Check your tax return from last year. It’s a great reminder of what you needed then and might need again. You might spot deductions you forgot or notice changes, like a new job, a side business, or different family circumstances.

Use Technology
Tax software has come a long way. Programs like TurboTax and H&R Block can walk you through the filing process step-by-step. Many also check for errors and suggest deductions you might miss on your own. Filing electronically through these tools also speeds up refunds, especially if you use direct deposit.

Mistakes to Watch Out For

Even small mistakes can cause big problems at tax time. Here are a few common ones you can avoid:

Forgetting Income
If you had a side hustle, sold items online, or did freelance work, you still need to report that income. Leaving it off your return could trigger IRS questions later.

Missing Deductions or Credits
Tennessee residents sometimes overlook federal deductions for student loan interest, educator expenses, and medical costs. The Child Tax Credit and the Earned Income Tax Credit are also important to check for.

Typos
Double-check your Social Security number, address, and bank information. A simple error can delay your refund or cause other issues.

Easy Ways to Keep Financial Documents Organized

Getting organized isn’t just helpful at tax time — it makes managing your money easier all year.

• Create a system: Use a labeled folder or a simple filing cabinet. Keep W-2s, 1099s, receipts, donation records, and any tax-related mail together.
• Go digital: Apps like Evernote or Dropbox allow you to scan and save documents securely. If you prefer using your phone, apps like Expensify make tracking receipts easy.
• Update regularly: Add new documents as they come in. This saves you from a big scramble in March or April.

Last-Minute Tax Prep Checklist

Feeling a little rushed? Here’s a quick list to help you stay on track:
Gather all W-2s, 1099s, and other income forms.

• Organize receipts for deductible expenses.
• Verify that your personal information is correct.
• Double-check for eligible deductions and credits.
• Choose a tax filing method (software, tax pro, or DIY).
• File electronically and use direct deposit for faster refunds.
• Save copies of your return and supporting documents.

Following this checklist helps make sure you don’t miss anything important before you hit submit.

Citizens Bank Can Help You Get Tax-Ready in Nashville

Tax season doesn’t have to be a hassle. Citizens Bank in Nashville is here to make it easier. Our personal banking services can help you stay organized, save smarter, and plan for a better financial future.
Need help setting up a savings account for next year’s taxes? Want to make sure you’re getting the most from your banking tools? Our local team can walk you through it.
Visit your nearest Citizens Bank branch in Nashville or give us a call. We’re ready to help you feel confident this tax season and the remainder of the year!

Plan Smarter for Tax Time with Citizens Bank’s Personal Banking Services

Tax season doesn’t have to be stressful. At Citizens Bank in Nashville, we’re here to help you stay organized and make smarter financial moves. If you need advice on managing your personal banking or want tips to simplify your tax prep, our team is ready to support you.

Stop by one of our branches or give us a call today — let’s make this tax season your smoothest one yet!