Every year about a month after we hear the song "It's the Most Wonderful Time of The Year", it turns into what many would consider the worst time of the year. It's time to file those individual and business tax returns once again! This doesn't need to be as painful of a process as maybe it has been in the past, earlier this week the IRS released some tips to make 2024 tax filing smoother than in the past:
- Gather Required Documents: Ensure you have all necessary paperwork, including Social Security numbers, bank account details, tax forms (W-2, 1099, 1098), health insurance info (Form 1095-A), and any IRS letters regarding tax credits or deductions.
- Report All Income: Accurately report all income types, including online sales, investment earnings, part-time jobs, self-employment, and payments through mobile apps to avoid IRS notices or bills.
- E-file and Direct Deposit: Filing electronically is the fastest way to receive your refund and reduces errors. Tax software guides you through the process.
- Free Resources: IRS Free File is available for those earning $84,000 or less. Direct File allows taxpayers to file directly with the IRS for free in 25 states. There are also free filing options for people making $67,000 or less, seniors, and those with disabilities through Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
- Choose Filing Method: Depending on comfort level, you can file personally, use online services, or hire a tax professional. Be cautious of dishonest preparers.
- Use IRS Online Tools: The IRS website offers 24/7 access to resources like the Interactive Tax Assistant and refund status checks.
As always, you can reach out to your personal tax professional and they should be able to help make this a relatively pain free process. For more information or tips I have attached the IRS website with tips and tricks as well as how to stay updated below.