As a contractor, successfully e-filing your taxes can feel like crossing the finish line after a marathon. But in reality, it marks the beginning of another important phase: planning for the next tax year. Contractors operate with unique financial dynamics, from irregular income to complex deductions. Proper post-tax-season planning can make the following year smoother, more compliant, and less stressful. In this blog, we break down what contractors should do after e-filing to set themselves up for success.
1. Confirm That Your E-Filing Was Accepted
The very first step after submitting your taxes electronically is to confirm that the IRS and your state tax authority accepted your return. E-filing platforms typically provide a confirmation within 24 to 48 hours. If you used a tax preparer, they should inform you of the acceptance.
Action Item: Check your email or tax software dashboard for the confirmation notice. Save it for your records.
2. Store Tax Documents Securely
Once your return has been accepted, gather all related documentation—W-2s, 1099s, receipts, mileage logs, and deduction records—and store them in a secure, organized location.
Contractors are often audited more frequently than traditional employees due to their self-employed status. Having complete and well-organized documentation is your first line of defense.
Action Item: Use cloud-based document storage or a physical filing system with clearly labeled folders. Keep documents for at least seven years.
3. Review Your Tax Return
After the pressure of filing is over, take time to review your tax return in detail. Understanding what went well (and what didn’t) can help you identify opportunities to improve next year’s filing.
Look for:
- Any underpayment penalties or large tax bills
- Missed deductions or credits
- Unusual income categories or errors
Action Item: Schedule a meeting with your tax professional or bookkeeper to walk through your return and identify areas for improvement.
4. Adjust Your Estimated Tax Payments
As a contractor, you’re typically responsible for paying estimated taxes quarterly. If you owed more or received a large refund, it may be time to adjust those payments.
Action Item:
- Review IRS Form 1040-ES to recalculate your estimated payments.
- Use your most recent return as a guide.
- Work with a tax professional to project income and deductions for the year.
Paying the correct estimated taxes throughout the year helps avoid penalties and prevents surprises at tax time.
5. Reassess Your Business Structure
Was your business taxed as a sole proprietorship, LLC, or S Corporation? Your business structure has a big impact on how you pay taxes. After filing, it’s a good time to reassess whether your current structure is still the most advantageous.
Action Item:
- Consult a tax advisor to analyze whether switching to an S Corp could save you money.
- Consider the costs of payroll services, compliance, and state-level fees versus the potential tax savings.
6. Improve Your Bookkeeping System
Clean, accurate books make tax time much easier—and they’re crucial for making smart business decisions. If you had trouble pulling reports or finding receipts this tax season, it’s time to upgrade your system.
Action Item:
- Implement cloud-based accounting software like QuickBooks or Xero.
- Hire a professional bookkeeper, such as Aladdin Bookkeeping: Bookkeeping for Contractors who specializes in working with contractors.
- Establish monthly or quarterly reviews to stay on top of your finances.
7. Track Mileage and Expenses in Real Time
One of the most common areas where contractors lose deductions is poor tracking of business mileage and expenses. Now is the time to set up tools and systems that capture this data automatically.
Action Item:
- Use apps like MileIQ or QuickBooks Self-Employed for mileage tracking.
- Set up automatic expense imports and tagging in your bookkeeping software.
- Keep a digital or physical log of receipts, sorted by category.
8. Maximize Retirement Contributions
Contractors have access to several powerful retirement plans that also offer tax benefits, such as SEP IRAs, Solo 401(k)s, and SIMPLE IRAs. After filing is the perfect time to assess how much you can contribute this year.
Action Item:
- Review contribution limits and deadlines.
- Consult with a financial advisor to choose the right plan.
- Set up automatic monthly contributions to avoid scrambling at year-end.
9. Plan for Equipment and Vehicle Depreciation
If you purchased equipment or a vehicle for your business, you may be eligible to deduct the depreciation. Understanding how this works can help you plan future purchases for optimal tax benefit.
Action Item:
- Work with your accountant to create a depreciation schedule.
- Keep detailed records of purchase dates and costs.
- Consider timing future purchases to align with tax strategies.
10. Review Business Insurance and Liability Coverage
Now that your financial year is clear, it’s wise to review your risk management plans. Are you adequately insured for the type of contracting work you do? Did anything change in your operations that requires an update?
Action Item:
- Review policies for general liability, professional liability, commercial auto, and workers’ comp.
- Speak to an insurance broker familiar with contractors.
- Ensure that your coverage aligns with your current scope of work and revenue.
11. Update Your Financial Goals
Post-tax season is a strategic time to reflect on your financial goals. Whether you want to grow your contracting business, buy a home, or reduce debt, aligning your financial systems and tax strategies with those goals is key.
Action Item:
- Set SMART financial goals (Specific, Measurable, Achievable, Relevant, Time-bound).
- Create a budget that incorporates tax planning.
- Work with a bookkeeper or financial planner to stay on track.
12. Prepare for Next Year’s Tax Season—Now
Start compiling a checklist for next year’s tax filing while this year’s experience is still fresh in your mind. Think of what was difficult or unclear and find ways to streamline it.
Action Item:
- Create a digital checklist or calendar of tax deadlines.
- Set quarterly reminders to organize documents and assess financial performance.
- Create a dedicated email folder or cloud drive for tax-related correspondence.
13. Build a Relationship With a Tax Professional
Having a knowledgeable tax professional on your side throughout the year—not just during tax season—can make a huge difference in your business’s financial health.
Action Item:
- Schedule quarterly check-ins with your tax pro.
- Ask them about new tax law changes affecting contractors.
- Use their insights to adjust your tax strategy in real-time.
14. Know What to Do if You Owe Taxes
If you ended up owing taxes and don’t have the funds to pay in full, don’t panic. The IRS offers payment plans and options that can keep you in good standing.
Action Item:
- Log in to the IRS website to apply for a payment plan.
- Avoid ignoring the bill, which can lead to more penalties and interest.
- Work with a tax resolution specialist if needed.
15. Celebrate Your Progress—Then Stay Disciplined
Finally, give yourself credit. Taxes are no small feat, especially as a contractor managing everything from job sites to spreadsheets. Celebrate completing this year’s taxes—but commit to better systems and planning going forward.
Action Item:
- Treat yourself to a reward, then set a recurring monthly calendar reminder to review your finances.
- Keep a running list of tax questions or concerns to address throughout the year.
Final Thoughts: “After E-Filing What to Do” Is the Key to Contractor Success
The period after e filing is not just about crossing something off your to-do list—it’s your launchpad for a more profitable, organized, and stress-free year. Implementing even a few of the strategies above can help you make better decisions, capture more deductions, and face next year’s taxes with confidence.
If you’re ready to build a year-round tax strategy and take control of your contracting finances, our bookkeeping firm specializes in helping contractors like you. From monthly reconciliations to quarterly tax reviews, we’re here to help.
Ready to get started? Contact us today and turn tax season into just another part of a thriving business strategy.
