There is one common situation I see every tax season, and making this change would simplify your tax situation.
Number of Financial Accounts
Minimizing the number of financial accounts you have, when possible, will not only simplify your tax situation, but will also help to simplify your finances. Actions to take include closing out or consolidating small bank accounts, combining retirement accounts, and having less brokerage accounts.
Other financial accounts or investments sometimes include partnerships that generate a K-1. Often, these investments generate a very small amount of income or loss, however, they tend to complicate the tax return and are often received after the original tax due date. If it makes sense to do so, then sell these investments to simplify matters, and the resulting tax impact is usually very minimal.
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