NOV Employees: Navigate Tax Season Like a Pro

NOV employees must recognize the value of proactive tax planning, as strategic contributions to retirement accounts and thorough verification of deductions can significantly reduce tax liabilities and improve long-term financial outcomes. – Michael Corgiat, a representative of The Retirement Group, a division of Wealth Enhancement Group.

NOV employees should leverage tax season as an opportunity to refine their financial strategies by maximizing contributions to retirement accounts, utilizing available tax credits, and staying ahead of state tax changes to ensure a more favorable financial outlook. – Brent Wolf, a representative of The Retirement Group, a division of Wealth Enhancement Group.

In this article, we will discuss:

1. How to optimize your retirement and health-related contributions before the tax deadline.

2. Navigating state tax rules amid the rise of remote work.

3. Leveraging key tax credits and deductions to help reduce your liability.

NOV employees should be especially careful with their tax returns before filing them with the Internal Revenue Service this tax season. Last year, about USD 3,138  per  filer got refunds on average, IRS data showed. This concludes their IRS dealings  for  most, unless more information is requested. Remember the IRS sends written correspondence to prevent common frauds.

1. Optimizing Contributions

Test whether you've contributed to your Health Savings Accounts (HSAs), Roth IRAs, and Traditional IRAs by the federal tax deadline of April 15, 2025 for the 2024 tax year. This includes requests for extensions, though different deadlines may apply to those affected by federal disaster declarations like the California wildfires. The IRS  website  should be updated regularly.

Independent contractors can contribute to a Simplified Employee Pension plan (SEP IRA) through the business tax reporting deadline. Some choose to invest the expected tax refunds in these contributions to avoid stagnation of funds.

2. State Tax Compliance

The rise  of remote work has increased state tax liabilities - especially for workers from states different from their employer's location. Learn about the often complex state tax laws.

3. Leveraging Tax Credits

Tax credits like the  Child Tax Credit  and  Earned Income Tax Credit  lower your  tax liability  directly. Also, education-related credits like the American Opportunity Tax Credit and Lifetime Learning Credit might help with higher education costs. Eligibility for these benefits must be verified.

4. Income and Deductions Verification

NOV employees should investigate all income sources and potential deductions. That includes paying for taxable unemployment benefits and getting all 1099 forms. Some tax obligations may be easier  to  with inflation adjustments  to  and a higher standard deduction in 2024.

State and local taxes, medical costs, mortgage interest, and charitable contributions are big deductions. Those itemizing deductions must be compared  with  the standard deduction. The home office deduction is still available for  self-employed individuals  under certain conditions.

5. Strategic Planning & Filing Extensions.

File for an extension if necessary by April 15 to extend your filing deadline to October 15. Remember this extension does not apply to tax payments due - which must be paid by the original deadline or  to  face penalties.

File early to limit identity theft risks and expedite refunds - and plan for next year. Use your tax return for planning - make informed decisions about state residency and tax withholding adjustments.

The tax maze requires proactive planning to improve your financial condition and minimize tax liabilities. Using contributions fully, understanding state tax consequences, claiming available tax credits, confirming all income and deductions and planning your filing time can improve your financial picture. Talking  to  a tax professional can give you tailored advice on your financial plans.

Those approaching or in retirement should know how Social Security income is taxed. Up to 85% of your Social Security benefits could be taxable based on your income. Timing withdrawals from retirement plans or earnings from part-time work affects your tax bracket and Social Security tax rate. Strategic planning can help minimize taxes on these benefits, as described in the IRS's Benefits Planner:  Planning  Your Taxes Now. The Income Taxes and Your Social Security Benefit

Enjoy tax season with this guide to making informed contributions, understanding state tax compliance, and using tax credits to lower your tax bill. Prepare thoroughly by understanding state taxation, remote work impacts, and timely tax credits. Make sure your various income sources and potential deductions are documented.

Like regular health  check-ups , paying taxes helps you stay on top of your finances and within regulations. Contributing to retirement accounts is preventative financial care - it lowers future tax burdens and supports financial health. Like getting personalized health advice at your annual physical, a thorough tax review positions you for the coming fiscal year.

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Sources:

1. IRA Contribution Deadline - Retirement Daily.   TheStreet , 3 Mar. 2025. Entire article. Author: TheStreet Staff.

2. State and Local Tax Considerations of Remote Work Arrangements.   National Conference of State Legislatures (NCSL) , 15 Sept. 2023, pp. 1-10. Author: NCSL Fiscal Affairs Program.

3. Tax-Saving Moves You Can Make Before Year-End.   Charles Schwab , 10 Oct. 2024. Entire article.
Author: Hayden Adams.

4. Taxes in Retirement: 7 Tax Tips for After You Retire.   TurboTax , 1 Mar. 2025. Entire article.
Author: TurboTax Staff.

5. Managing State and Local Tax Implications of Remote Work.   Carr, Riggs & Ingram CPAs and Advisors , 6 Mar. 2025. Entire article. Author: Vicki Bolskar.