This tax season, like every year, will bring new and different complexities. You might wonder about new tax breaks and credits and how they can be rewarding, challenging, or both! Some of the best advice one can give you right away? Always file electronically. This is one of the best things to do to get your return promptly. But what else can you do to lock in a fast return? We have all the tips you need to keep in mind.
If you require tax services in Birmingham, look no further than Sovereign CPA Group LLC. Contact us online or call (205) 402-4245 and let us assist you.
Gather and Organize Tax Records
Having all your documents and records in one place before filing makes it that much easier for you to get it done quickly! It also helps avoid errors that could lead to processing or refund delays. Important forms include:
- Forms W-2 from employer(s)
- Forms 1099 (including 1099-K, 1099-MISC, and 1099-INT)
- Other income documents
Start As Soon As Possible
As professionals will remind you every year, never wait until the last minute to file your taxes. Should your return be flagged for review, this almost certainly means your return will be delayed, and no one wants that. If you want to avoid any trouble, the best thing to do is to go to a professional for the best guidance.
Ensure Its Accuracy
Inaccuracies are common triggers when IRS audits are issued. Even after you file, the IRS matches the information provided on your tax return with W-2 forms from your employer. This also includes 1099 forms from clients, banks, or investment companies and payment data from the government. If your tax return differs from what is on file, it could be flagged.
Claim Child Tax Credits
Parents could be eligible for child tax credits ranging from $3,000 to $3,600 per child. You can claim these credits on your tax return using Schedule 8812. As you would with any other tax return, double-check for accuracy. The IRS could also flag your return if there are any inaccuracies.
Plan for an Extension if You Need One
If you will not be able to submit your tax information by the typical April deadline, it is crucial that you request an extension as soon as possible. Extensions can move the deadline up to October 17. But that does not mean waiting any longer to pay the taxes you owe. The IRS still expects you to make a good faith estimate if you want to avoid penalties or interest.
File Electronically, Choose Direct Deposit
Filing electronically is one of the easiest methods, following working with a professional. You can use many tools online to file your taxes, ensuring you will get your return as soon as possible. When you do file online, make sure to choose direct deposit!
Don’t Forget Unemployment Benefits
Unemployment benefits you received in 2022 are taxable, so remember to report this income on your return. You might owe additional tax if you did not have taxes withheld from your benefit payments. Working with a professional is one of the best ways to get these issues sorted out.
Make Sure Side Work is Accounted For
Whatever gig you landed aside from your day job should still be accounted for when doing your taxes! Whether you were working for a delivery app, renting out a parking space, or anything of the sort, you must report your income and pay taxes on it. For more information regarding side money you can visit the IRS’ Gig Economy Tax Center.
Get Your Taxes Done Fast with The Pros at Sovereign
Tax season is nearly here, and one of the best things you can do to save time is to work with a professional. Contact our Birmingham office online or call (205) 402-4245 and learn more about our services and how we can help you this tax season.