Since we all know what the other certainty in life is (death), maybe we shouldn’t be all that upset about the onset of tax season, right? And while it may seem that the tax code gets more complicated every year, the good news is there are more tools now than ever before to streamline the process of tax preparation and make sure you complete your return correctly. Here are a few tax hacks to dial down the pain.
Tax Software
You’ve probably heard of Turbo Tax. It’s the market leader in tax prep software, but it’s not the only option. If your adjusted gross income is $66,000 or less (which is the case for the overwhelming majority of filers), you may qualify for free software to file your federal return. Go to the IRS website’s Free File page to learn more. Different companies have different eligibility criteria to get the freebie, so you’ll be asked to answer a few questions to match you with the right commercial tax software. And remember, not all of the IRS’ partner companies offer free state tax returns, so be sure to check those details before proceeding.
IRS Mobile App
Some filers may also qualify for free tax preparation assistance, and you can use the IRS mobile app (IRS2GO) to find IRS Volunteer Income Tax Assistance (VITA) and the Tax Counseling for the Elderly (TCE) sites. You can also use the app to subscribe to tax tips from the IRS, follow the IRS on social media, and connect to other online tools from the IRS. And once your return is filed, if you have a refund due, the app will let you check your refund status simply by entering your Social Security number, filing status, and the refund amount you’re expecting. It’s a basic app, but useful
Report Everything (yes, everything)
Finally, few things trigger an audit faster than failing to report all of the income that’s been reported to the government under your Social Security number. You’re not likely to forget income noted on the W-2 you get from your employer, but be sure to also include other sources of income throughout the year, like interest income from your savings and crypto accounts, dividends on stocks, freelance work, unemployment compensation, scholarships, and prize winnings such as gambling and lottery winnings.
Think Ahead
You’ve got nine months left to the end of this year – so no time like the present to plan ahead. If you are lucky enough to get a refund this year, consider using some of this to pay down debt or put funds aside to cover potential tax liabilities next tax season. Your Credit Union’s free Tax Saver account makes this easy and rewarding. Learn more.
