Five Steps You Can Take Now to Prepare for Tax Season
Adapted from The IRS
Disclaimer: This blog post addresses tax information from the IRS. For personalized tax guidance, consult with a tax professional.
Tax season is right around the corner. And while it’s not the most enjoyable activity in the world for most people, there are steps you can take now to make it a little less painful when the time comes to file your taxes.
- View your account information online
- Visit www.irs.gov and use your online account to securely access all the latest information about your tax account. You’ll be able to view the amounts of the Economic Impact Payments you received, view five years of payment history, and more!
- Gather and organize your tax records
- Staying organized throughout the year can help in relieving some of the stress around tax season. Start gathering essential documents like W-2s, 1099-INT, 1099-MISC, Letter 6419 (2021 Total Advance Child Tax Credit Payments), Letter 6475 (Economic Impact Payment), and more. For a more detailed list, click here.
- Check your Individual Tax Identification Number (ITIN)
NOTE: an ITIN only needs to be renewed if it has expired and is needed on a US federal tax return.
- Make sure you’ve withheld enough tax
- If you owed taxes or received a large refund last year, consider adjusting your withholding. This can help you avoid a tax bill and/or let you keep more money per paycheck.
Note: Major life changes like getting married/divorced and/or having a baby may mean you need to/want to change your withholding.
- Get banked to speed tax refunds with direct deposit
- Did you know? The fastest way to get a tax refund is by filing electronically and choosing direct deposit!
Fun Fact: 8 out of 10 taxpayers get their refunds through direct deposit.
One of the best things you can do for the upcoming tax season is to be prepared! Click here to view more information on reconciling advance Child Tax Credit payments (NEW this year), information on claiming a recovery rebate credit (if you didn’t qualify for the third Economic Impact Payment or didn’t receive the full amount), and more information on how to avoid refund delays and timing!