Taxpayers rejoice! You have until Monday, April 15, 2024 to file federal income taxes. If you’ve already crossed this off your list…congratulations! And if you’re in the company of 25% of Americans who wait until the last minute? Don’t panic. Here are tips to get your ready!
1. Get Organized
Save yourself time by gathering all applicable tax documentation beforehand, including receipts and interest statements. Some common forms include:
a) W-2: Wage and Tax Statement
b) W-4: Employee Withholding Certificate
c) 1040: US Individual Income Tax Return (1040-SR: U.S. Tax Return for Seniors)
d) 1099: Miscellaneous Income
e) 1098: Mortgage Interest Statement (1098-T: Tuition Statement)
2. Double-check Deductions
It’s easy to overlook opportunities for tax deductions, especially if you experienced major life transitions in 2023 such as the purchase of a home or vehicle or the start of a new job. Among the most overlooked tax deductions that can help you pocket more money are contributions to a Health Savings Account (HSA) and contributions to a traditional IRA. (Roth IRA contributions won’t trim your tax bill but does allow you to max out the limits for retirement saving.)
3. Avoid Common Errors
Before filing, make sure you’ve reviewed your personal information such as your social security number, employer identification numbers, calculations, and signature/date to ensure that your return doesn’t have any last-minute mistakes. Minor errors can result in a rejected return and/or a delayed refund.
4. Consider an Extension
If making it before midnight on the 15th is a hurdle, you can request an automatic tax-filing extension. Filing this form gives you until October 15th to submit your tax return. There’s no penalty for filing a late return if you’re receiving a refund, but if you owe tax, late payment by even one day can result in penalties and interest.
If you’re anticipating a refund this season, Making the Most of Your Money is an easy, 10 minute online course provided by our partners at GreenPath Financial. This course provides tips on how to wisely spend your refund – from establishing an emergency fund to saving up for vacation!