An Internal Revenue Service 2023 1040 tax form and instructions are shown on Jan. 26, 2024. For many people filing U.S. tax returns — especially those doing it for their first time — it can seem like a daunting task.
AP Photo/Peter Morgan
NEW YORK — Tax season began Monday and for many people filing U.S. tax returns — especially those doing it for their first time — it can be a daunting task that’s often left to the last minute. But if you want to avoid the stress of the looming deadline, start getting organized as soon as possible.
Whether you do your taxes yourself, go to a tax clinic or hire a professional, navigating the tax system can be complicated and stressful. Courtney Alev, a consumer financial advocate for Credit Karma, recommends you go easy on yourself.
“Take a breath. Take some time, set out an hour, or go through it over the weekend. You’ll hopefully see that it’s a lot simpler than you think,” Alev said.
If you find the process too confusing, there are plenty of free resources to help you get through it.
Here are some things you need to know:
When is the deadline to file taxes?
Taxpayers have until April 15 to submit their returns from 2023.
What do I need to file my tax return?
While the required documents might depend on your individual case, here is a general list of what everyone needs:
• Social Security number
• W-2 forms, if you are employed
• 1099-G, if you are unemployed
• 1099 forms, if you are self-employed
• Savings and investment records
• Any eligible deduction, such as educational expenses, medical bills, charitable donations, etc.
• Tax credits, such as child tax credit, retirement savings contributions credit, etc.
To find a more detailed document list, visit the IRS website.
Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, recommends gathering all of your documents in one place before you start your tax return and also having your documents from last year if your financial situation has drastically changed.
O’Saben also recommends taxpayers create an identity protection PIN number with the IRS to guard against identity theft. Once you create a number, the IRS will require it to file your tax return.
How do I file my taxes?
You can either file your taxes online or on paper. However, there is a great time difference between the two options. Paper filing can take up to six months for the IRS to process, while electronic filing cuts it down to three weeks.
What resources are out there?
For those who make $79,000 or less per year, the IRS offers free guided tax preparation that does the math for you. If you have questions while working on your tax forms, the IRS also offers an interactive tax assistant tool that can provide answers based on your information.
Beyond the popular companies such as TurboTax and H&R Block, taxpayers can also hire licensed professionals, such as certified public accountants. The IRS offers a directory of tax preparers across the United States.
The IRS also funds two types of programs that offer free tax help: VITA and the Tax Counseling for the Elderly program (TCE). People who earn $64,000 or less a year, have disabilities or are limited English speakers, qualify for the VITA program. Those who are 60 or older, qualify for the TCE program. The IRS has a site for locating organizations hosting VITA and TCE clinics.
How can I avoid mistakes in my tax return?
Many people fear getting in trouble with the IRS if they make a mistake. Here’s how to avoid some of the most common ones:
• Double check your name on your Social Security card.
• Search for tax statements when you have opted out of paper mail.
• Make sure you report all of your income.
If you had more than one job in 2023, you need the W-2 forms of each.
What about the child income credit?
Earlier this month, Congress announced a bipartisan agreement to enhance the current child tax credit. Currently, the tax credit is $2,000 per child, but only $1,600 is refundable. The bill would incrementally increase the maximum refundable child tax credit to $1,800 for 2023 tax returns, $1,900 for the following year and $2,000 for 2025 tax returns.
If this agreement goes through, around 16 million children in low-income families would benefit from this child tax credit expansion, according to the Center on Budget and Policy Priorities. Lawmakers are hoping to move this bill as soon as possible.
How can I avoid scams?
Tax season is prime time for tax scams, said O’Saben. These scams can come via phone, text, email and social media. The IRS uses none of those means to contact taxpayers.
Sometimes scams are even operated by tax preparers so it’s important to ask lots of questions. If a tax preparer says you will get a refund that is larger than what you’ve received in previous years, for example, that may be a red flag, O’Saben said.
If you can’t see what your tax preparer is working on, get a copy of the tax return and ask questions about each of the entries.
How long should I keep copies of my tax returns?
It’s always good practice to keep a record of your tax returns, just in case the IRS audits you for an item you reported years ago. O’Saben recommend keeping copies of your tax return documents for up to seven years.
