It’s hard to believe, but it’s nearing that time of year again when each of us must take the painstaking care to make sure we’ve given Uncle Sam his dues and meticulously catalogued our financial history for the last calendar year.
Whether you’re someone who wants to finish early or you wait until the last second, preparation is key and IRS.gov has some great resources and reminders that are applicable regardless of which service or format you use to file.
The following is pulled from the article “Get ready to file your taxes” at irs.gov. The article will be linked at the bottom of the page in the “Further reading” section.
- Create or access your account information at IRS.gov/account.
Use your online account to securely access the latest information available about your federal tax account and see information from your most recently filed tax return.
- Gather and organize your tax records.
Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to delays that slow your refund and may also help you find overlooked deductions or credits. Wait to file until you have your tax records including Form W2 from your employer; Form 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions; and Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy. There may be additional forms that are applicable to your tax filing.
Remember: you need to notify the IRS if your address changes and notify the Social Security Administration of any name changes. Remember that most income is taxable including unemployment income, interest received, income from the gig economy and digital assets.
- Double check your ITIN (Individual Tax Identification Number).
An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return. If you do not renew an expiring or expired ITIN, the IRS can still accept your tax return, but it may delay processing it or delay tax credits owed to you, such as the Child Tax Credit and the American Opportunity Tax Credit, which can impact when you get your tax refund. If your ITIN wasn’t included on a U.S. federal tax return at least once for tax years 2021, 2022 and 2023, your ITIN expired on Dec. 31, 2024.
- Get an identity protection personal identification number (IP PIN).
An IP PIN is a six-digit number that prevents someone else from filing a federal tax return using your Social Security number or ITIN. It’s a vital tool for ensuring the safety of your personal and financial information. The best way to sign up for an IP PIN is through your IRS Online Account. If you are unable to create an Online Account, alternative methods are available, such as in-person authentication at a Taxpayer Assistance Center. More information is available on how to sign up at tinyurl.com/44cw26eh.
- Make sure you’ve withheld enough tax.
Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also mean changing withholding.
Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer.
- Consider estimated tax payments.
If you receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income you should make quarterly estimated tax payments. For estimated tax purposes, the year is divided into four payment periods, with the last payment due in mid-January.
- Get banked to speed tax refunds with direct deposits.
The fastest way for you to get your tax refund is by filing electronically and choosing direct deposit. Direct deposit gives you access to your refund faster than a paper check. Get your routing and account number by signing into your online banking account or contacting your bank. Don’t have a bank account? Learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool. If you are a veteran, see the Veterans Benefits Banking Program (VBBP) for access to financial services at participating banks. Prepaid debit cards or mobile apps may allow direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on your tax return. Check with the mobile app provider or financial institution to confirm which numbers to use. Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable.
Filing your taxes doesn’t have to be scary. There are enough resources and tools available and qualified professionals a phone call away that, with the right preparation, you can sail smoothly through tax season. Check out the links below for some further reading:
www.irs.gov/individuals/get-ready-to-file-your-taxes
www.consumerfinance.gov/consumer-tools/guide-to-filing-your-taxes/
Intuit TurboTax: tinyurl.com/2h5w56yz
