Get ready to file your taxes
Here are 5 tips to help you file your taxes without any problems
- Create your account at IRS.gov/account
By using an online account, you can:
- View your tax owed, payments, and payment plans
- Make payments and apply for payment plans
- Access your tax records
- Sign power of attorney authorizations electronically from your tax professional
- Manage your communication preferences from the IRS
- Gather and organize your tax records
Organized tax records make preparing a complete and accurate tax return easier. It helps you avoid errors that lead to delays that slow your refund and may also help you find overlooked deductions or credits.
Wait to file until you have your tax records including:
- Forms W-2 from your employer(s)
- Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions
- Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy
- Form 1099-INT if you were paid interest
- Other income documents and records of digital asset transactions
- Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
- IRS or other agency letters
- CP01A Notice with your new Identity Protection PIN
Notify the IRS if your address changes and notify the Social Security Administration of a legal name change.
Remember, most income is taxable. This includes: unemployment income, interest received, income from the gig economy, and digital assets.
- Check your Individual Tax Identification Number (ITIN)
An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return. If you do not renew an expiring or expired ITIN, the IRS can still accept your tax return, but it may delay processing it or delay tax credits owed to you, such as the Child Tax Credit and the American Opportunity Tax Credit, which can impact when you get your tax refund.
If your ITIN wasn’t included on a U.S. federal tax return at least once for tax years 2020, 2021, and 2022, your ITIN will expire on December 31, 2023.
- Make sure you’ve withheld enough tax
Consider adjusting your withholding if you owed taxes or received a large refund when you filed. Changing your withholding can help you avoid a tax bill or let you keep more money each payday. Credit amounts may change each year, so visit IRS.gov and use the Interactive Tax Assistant to identify whether you qualify for any tax credits that may call for a withholding adjustment. Life changes – getting married or divorced, welcoming a child, or taking on a second job – may also mean changing withholding.
Use the Tax Withholding Estimator to help you determine the right amount of tax to have withheld from your paycheck. This tool on IRS.gov will help determine if you need to adjust your withholding and submit a new Form W-4 to your employer.
Consider estimated tax payments. If you receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income you should make quarterly estimated tax payments. For estimated tax purposes, the year is divided into four payment periods, with the last payment due in mid-January.
- Get banked to speed tax refunds with direct deposit
The fastest way for you to get your tax refund is by filing electronically and choosing direct deposit. Direct deposit gives you access to your refund faster than a paper check. Get your routing and account number by signing into your online banking account or contacting your bank.
Prepaid debit cards or mobile apps may allow direct deposit of tax refunds. They must have routing and account numbers associated with them that can be entered on your tax return.
Direct deposit also avoids the possibility that a refund check could be lost or stolen or returned to the IRS as undeliverable.
The earlier you file your tax return, the more likely you are to avoid tax-related identity theft, a crime that has been on the rise. Also, if you ever take out a loan or have financial problems, having filed your taxes can be the difference between getting the certifications and support you need or not. If you need help with your tax return, at My Accounting Now we have a team of accounting specialists, call us at 786-228-8689 or send us an email at info@myaccountingnow.com