For many Americans, particularly those filing for the first time, filing tax returns can be a daunting task that is frequently put off until the last minute. But if you want to avoid the stress of the looming deadline, you should begin organizing immediately.
Regardless of whether you do your own taxes, visit a tax clinic, or hire a professional, navigating the tax system can be difficult and stressful. Courtney Alev, a Credit Karma consumer advocate, advises you to be gentle with yourself.
Is It Required To File My Tax Return?
While the required documents may vary depending on your specific situation, the following is a general list of what everyone must have:
- Social Security number
- W-2 forms, if employed 1099-G forms, if unemployed
1099 forms, if you are a self-employed individual - Records of savings and investments
- Any allowable deduction, such as tuition, medical expenses, and charitable contributions.
- Tax credits, including the child tax credit and the retirement savings contributions credit, among others.
Visit the IRS’s website for a comprehensive document list. 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. For those with an annual income of $73,000 or less, the IRS offers free guided tax preparation with automatic math.
If you have questions while completing your forms, the IRS provides an interactive tax assistant that can provide answers based on the information you provide.
Additionally, the IRS funds two programs that provide free tax assistance: VITA and the Tax Counseling for the Elderly program (TCE). People with an annual income of $60,000 or less, disabilities, or limited English proficiency are eligible for the VITA program. Those aged 60 and older are eligible for the TCE program. The Internal Revenue Service has a website for locating organizations that host VITA and TCE clinics.
There are tax clinics across the nation that can assist you in resolving your issues. Typically, these clinics also offer services in Spanish, Chinese, and Vietnamese, among others.
Read more: Social Security Payments may be given to children as well; Here’s how!
How To Prevent Mistakes When Filing?
Numerous individuals fear getting in trouble with the IRS if they make an error. Here are some ways to avoid the most common ones:
- Double-check your name on your Social Security card.
- Search for statements if you have elected not to receive paper mail.
- Ensure that all of your income is reported.
In addition, if your business uses PayPal or Venmo as a service, you must include this information on your tax return. In 2022, the use of these services must be reported if they accounted for 200 calendar transactions.
Read more: Mortgage interest rates decline prompting 5% surge in refinancing applications
