Tax season often comes with extra paperwork, important deadlines, and a few decisions along the way. Even when your financial situation hasn’t changed, preparing ahead of time can make the process smoother and less stressful.
The tips below are designed to help you stay organized, avoid common mistakes, and approach filing with more confidence.
- Get Organized Before You Start
- Before you open tax software or schedule time with a professional, gather your documents in one place. This may include:
- W-2s or 1099s
- Mortgage interest statements
- Student loan interest statements
- Investment or savings account tax forms
- Records of charitable donations
- Having everything ready can save time and help prevent errors that may delay your refund.
- Know the Key Deadlines
- Most people know the tax filing deadline, but it’s easy to overlook others.
- Filing deadline: Typically April 15
- Estimated tax payments (if applicable): Quarterly
- Extensions: An extension gives you more time to file, not more time to pay
- Missing deadlines can lead to penalties and interest, so it’s worth marking important dates on your calendar.
- Double-Check Your Personal Information
- Simple mistakes can slow things down. Before submitting your return, confirm:
- Social Security numbers are correct
- Names match official records
- Bank account and routing numbers are accurate if you’re getting a refund
- These small details can make a big difference in how quickly your return is processed.
- Understand Credits vs. Deductions
- Credits and deductions both reduce your tax bill, but they work differently.
- Deductions reduce the amount of income that is taxed
- Credits reduce your tax bill dollar for dollar
- Common credits include child-related credits and education credits. Understanding the difference can help you make informed choices when filing.
- Be Careful with “Too Good to Be True” Promises
- During tax season, scams increase. Be cautious of:
- Emails or texts claiming to be from the IRS
- Promises of unusually large refunds
- Requests for personal or banking information
- The IRS does not initiate contact through email, text, or social media. If something feels off, take a step back before responding.
- Choose the Right Filing Method for You
- There’s no one-size-fits-all approach to filing taxes.
- Online tax software may work well for simple returns
- A tax professional can be helpful for more complex situations, such as self-employment, investments, or major life changes
- Have a Plan for Your Refund
- If you’re expecting a refund, think ahead about how you’ll use it. Options may include:
- Building or adding to an emergency fund
- Paying down high-interest debt
- Saving for a short-term goal
- Making a principal payment on a loan
- A refund can be a great opportunity to strengthen your financial footing.
- Review Your Withholding for the Year Ahead
- Withholding is the amount of federal income tax taken out of your paycheck and sent to the IRS throughout the year. This helps cover your tax bill gradually, rather than paying it all at once when you file.
- If you owed more than expected, or received a much larger refund than planned, it may be a sign your withholding is a little off. Reviewing it now can help reduce surprises next tax season and keep your take-home pay better aligned with what you actually owe.
- Keep Copies of Everything
- Once your return is filed, save copies of:
- Your tax return
- Supporting documents
- Confirmation of filing
- Keeping records makes future filings easier and helps if questions ever come up.
- Ask Questions When You’re Unsure
- If you’re unsure about something, ask a trusted professional or seek reliable resources. Taking the time to understand your situation can help you feel more confident and in control.
