Get ready for tax season by starting your planning early. Waiting until April to tackle your taxes can lead to missed opportunities for savings. With proactive management, you can significantly reduce your tax obligations.

So, how can you lessen what you owe to the IRS? Here are five of our top strategies to ease your tax burden before the season arrives.

1. Optimize Your Business Deductions

If you're an Uber driver or rent out your home on Airbnb, you're considered a small business owner. Congratulations! The IRS views independent contractors similarly to businesses, especially after the Tax Cuts and Jobs Act. While many employee deductions were removed, the costs incurred while doing your job remain fully deductible.

Your tax planning should include maximizing these deductions while enhancing your business's value. Unlike employees, independent contractors don't receive benefits like health insurance or workers' compensation, but you can save on taxes by managing these expenses yourself.

Tracking your expenses throughout the year can be time-consuming, but this diligence can lead to significant savings. Did you buy a new phone to streamline customer orders? Upgrading your laptop or purchasing new tires for work-related driving are also deductible expenses.

Business owners, including independent contractors, should aim to file tax returns without owing money. It's best to reinvest in your business through qualified expenses to maximize tax savings well before tax season.

If you're an Airbnb host and found yourself owing taxes last year, consider deducting renovation costs that enhance your property for guests.

The great part? If you later decide to stop hosting, you still benefit from those improvements. That's a win-win!

2. Make Charitable Contributions

Another effective method to lower your tax burden is by donating to charity. Anyone can write off charitable donations, regardless of age or income level. Retirees can also take advantage of qualified charitable distributions to lessen their adjusted gross income (AGI).

After reaching age 70 1/2, you must begin taking required minimum distributions (RMDs) from retirement accounts like 401(k)s and IRAs. However, you can direct some of these RMDs to your chosen charity, effectively lowering your taxable income. (In 2021, you can redirect up to $100,000)

3. Invest in Solar Energy

Have you thought about going solar? If your home allows it, switching to solar energy can help cut your tax bill. Under current IRS rules, you can claim a 26% tax credit by installing solar systems before the end of 2022. This credit decreases to 22% in 2023 and may expire in 2024 unless renewed by Congress. If solar energy has been on your mind, now is the time to act!

4. Review Your Medical Expenses

Good news for those burdened by high medical bills: you can now deduct medical expenses that exceed 7.5% of your adjusted gross income. This is a change from the previous threshold of 10%. This adjustment is helpful for those facing substantial healthcare costs. While sorting through receipts, don't forget to consider less common deductions, such as travel expenses for medical treatment. Keep receipts for hotel stays or flights related to care.

5. Stay on Top of Your Filing Responsibilities

This may seem straightforward, but it's crucial: always meet your tax deadlines. The IRS imposes penalties for missing deadlines, which can add up quickly but are avoidable. Incorporate timely filing as part of your tax strategy. Setting calendar reminders and automating payments can help ensure you never miss important deadlines.