I’m a Money Coach: 3 Moves Millennials Should Make Before Filing Their Taxes
It’s no secret that millennials have navigated a volatile financial landscape over the years. Now, their unique position in life — balancing student debt and side hustles while often caring for both kids and aging parents — can make routine financial tasks, including filing taxes, even more complex.
This generation could use a break — and some guidance on strategic moves that can help them save money during tax season.
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MoneyLion is here to deliver that much-needed break. To give millennials clarity on what they should do during tax time to set themselves up for lasting financial success, we spoke with Cody Schuiteboer, president and CEO of Best Interest Financial.
1. Gather All Your Forms Well in Advance
Schuiteboer knows millennials are busy. Still, he says they need to slow down and get all their essential tax forms — such as W-2s, 1099s, as well as receipts for charitable donations or payments related to a home office or other business expenses — well before they do their taxes.
He’s seen firsthand that disorganization comes with a real price tag.
“I once worked with a young man who was trying to find his receipts in April, which took him several days and prevented him from saving almost $2,000 in deductions,” he said.
It's a real-life example of how being proactive and organized can directly translate into tax savings.
2. Contribute to a Retirement Fund
Retirement might not be uppermost in millennials’ minds, but they should be regularly contributing to retirement funds — not only for their future selves, but to help reduce taxable income now.
Schuiteboer says that the largest mistake he sees among millennials is failing to contribute to an IRA or 401(k) before the tax filing deadline. Those contributions can lower taxable income, but only if they’re made in time.
“I've had many clients realize in February that they could lower their income significantly with an extra contribution, but the money was already spent,” he said. “It is a huge loss, especially considering how easy it is to save money by simply contributing $7,000 to a traditional IRA or $23,500 to a 401(k).”
He also points to wins when clients act early. Last year, he helped a 32-year-old woman cut her federal tax bill by about $1,500 after she increased her retirement contributions before filing.
3. Claim the Right Deductions and Credits
Figuring out which deductions and credits you qualify for can be time-consuming, but Schuiteboer says it’s well worth the effort.
“I helped a 28-year-old woman, a teacher, file a tax return and realized that she forgot to claim the educator expense deduction,” he said. “As a result, she lost $300 on her taxes.”
He adds that millennials should pay special attention to credits and deductions tied to income and education, including the Earned Income Tax Credit and the student loan interest deduction, if eligible.
The Bottom Line
Millennials have dealt with their fair share of financial stress, but filing taxes doesn’t have to be yet another hurdle. With a bit of planning, tax season can actually become an opportunity to save money and reinforce positive habits, like staying organized and investing in retirement.
With the right money moves, millennials may finally be able to catch a break during tax season.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal, or tax advice.
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