When filing US tax returns, many people, especially first-timers, put it off until the last minute because they find it intimidating.
But if you don’t want to worry about missing the deadline, you should start making preparations as soon as possible.
Things To Remember When Filing Tax Return
The tax system can be difficult and stressful to navigate regardless of whether you do your taxes yourself, visit a tax clinic, or hire a professional. There are many free resources available to help you through the process if you find it too daunting.
From 2022 onward, the deadline for filing tax returns is April 18th. While the specific paperwork you’ll need will vary based on your situation, everyone needs at least the following.
- 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
The IRS allows taxpayers to deduct a wide variety of costs from their annual tax returns.
Credits against taxes are paid for various reasons; for example, having children or saving for retirement.
Visit the IRS website for a comprehensive list of required paperwork.
Before beginning your tax return, the National Association of Tax Professionals advises that you gather all of your documents in one location, as well as last year’s documents if your financial situation has drastically changed.
Volunteer Income Tax Assistance (VITA) program site coordinator Theresa Grover from Northeast Wisconsin Technical College suggests taxpayers get an identity protection PIN number from the IRS. Thereafter, you’ll need that number when filing your taxes with the IRS.
Where To File Taxes?
Either online or on paper, you can file your taxes. Nevertheless, there is a substantial time difference between the two alternatives. The IRS can process paper returns in up to six months, whereas electronic returns are processed in three weeks.
Always request Social Security cards when working to verify their number and legal name, which can change if they get married.
Search for tax statements if you have elected not to receive paper mail. If you choose to opt out of snail mail, your tax documents may also be sent electronically. Ensure that all of your income is reported.
Read more: US economy: What to expect this year amid record-high inflation?
