Tax Filing Tips to Maximize Your Refund and Reduce Stress

Married couples filing together can claim a standard deduction of $25,900 for 2022, up by $800 from last year¹. Singles get a standard deduction of $12,950, a $400 increase¹. Heads of households see their deduction jump by $600 to $19,400¹. With these changes, it’s vital to know about deductions and credits to get the most refund.

Families with three or more kids can get up to $6,935 in Earned Income Tax Credit (EITC)¹. The EITC helps low to moderate-income workers and families¹. The Tax Cuts and Jobs Act of 2017 changed many tax rules, like mortgage interest and deductions¹. The Inflation Reduction Act offers rebates for energy-efficient home upgrades¹.

This guide will help you with tax filing tips to make tax season easier and maybe increase your refund. We’ll cover deadlines, deductions, and how to file accurately and efficiently. We’ll also talk about protecting against identity theft and using IRS resources. By following these tips, you can manage your taxes better and possibly get a bigger refund. Explore our expert-backed advice to make the most of your tax.

Key Takeaways

Understand the changes in standard deductions for married, single, and head of household filers
Leverage the Earned Income Tax Credit (EITC) if you qualify
Be aware of recent tax law changes, including the Tax Cuts and Jobs Act and Inflation Reduction legislation
Explore strategies to reduce tax preparation stress and boost your refund
Utilize IRS resources and seek assistance from qualified tax professionals

Understand Important Tax Deadlines

It’s key to keep up with tax deadlines to dodge penalties and make sure your return is filed on time. The standard tax return filing deadline is April 15th, but this can change if it falls on a weekend or holiday². If you need more time, you can ask for an extension, which moves the deadline to October 15th². But remember, an extension only delays the filing deadline, not the payment deadline. You must pay any taxes owed by April 15th to avoid extra charges².

Tax Return Filing Deadlines

Most people have to file their taxes by April 15, or October 15 if they get an extension². If you work for yourself or as a freelancer, you’ll need to make quarterly tax payments². Businesses like partnerships and S-Corps must file by March 15². Employers must send out W-2 forms by January 31, 2024, and people who turned 73 in 2023 need to take their required minimum distribution by April 1, 2024².

Extension Filing Deadlines

The last day to file Form 1040 for 2023 is April 15, 2024, unless you live in Maine or Massachusetts, then it’s April 17, 2024³. It’s wise to wait for all your tax papers before filing to avoid mistakes³. Quarterly tax payments for 2024 are due on April 15, June 17, September 16, and January 15⁴. The IRS can charge penalties if you don’t pay your taxes on time or in full⁴.

“Missing tax deadlines can result in penalties, interest, and other consequences.”²

Businesses like partnerships, C-Corps, and S-Corps have their own tax deadlines². IRS Publication 509 lists all key tax deadlines².

Deadline	Description
June 17, 2024	Due date for the second quarter 2024 estimated tax payment².
September 16, 2024	Date for the third quarter 2024 estimated tax payment².
December 31, 2024	Deadline for required minimum distributions for individuals aged 73 or older².

Knowing and meeting these tax deadlines can save you from penalties, help you get a bigger refund, and make tax time less stressful². It’s vital to understand the different deadlines that apply to you for good tax planning²³⁴.

Leverage Available Tax Deductions

Getting ready for tax season? Boost your refund by making the most of your tax deductions. Tax deductions can cut down your taxable income, giving you a bigger refund or a smaller tax bill. Think about charitable donations and disaster losses as ways to save.

Charitable Contributions

Don’t forget about your charitable donations. Keep records of your gifts, especially if they’re over $250. These donations can help lower your taxes.⁵

Disaster Losses

Did a disaster hit you hard? You might be able to deduct those losses. Remember, the deduction is less if you got insurance money or if you can still use part of what was lost.⁵

Using these deductions can lower what you owe in taxes. It’s smart to get help from a tax expert to make sure you’re using all the deductions you can.⁵

https://www.youtube.com/watch?v=xhm1f-8oYCQ

Navigating Tax Deductions This Year: Your Guide to Maximizing Your Tax Refund! (https://www.youtube.com/watch?v=xhm1f-8oYCQ)

“Maximizing your tax deductions is a key strategy to boost your refund and reduce your overall tax burden.”

Deduction	Description	Eligibility
Charitable Contributions	Donations to qualified charitable organizations	Itemized deductions, subject to income limitations
Disaster Losses	Losses from federally declared disasters	Itemized deductions, reduced by insurance and salvage value
Business Expenses	Ordinary and necessary expenses for operating a business	Deductible as business expenses
Medical Expenses	Qualified medical expenses exceeding 7.5% of adjusted gross income	Itemized deductions

Keep good records of your donations and disaster losses.
Get advice from a tax pro to make sure you’re using all deductions and credits.
Keep up with tax law changes that could affect your deductions.

Tax deductions can really cut down what you owe in taxes.
Think about charitable giving and disaster losses for deductions.
Get expert advice to use all the deductions and credits you can.

By knowing and using tax deductions, you could pay less in taxes and get a bigger refund. Talk to a tax pro to make sure you’re getting all the tax breaks you deserve⁵.

Protect Against Identity Theft

Tax season is a key time for identity thieves to strike. To keep your info safe, make sure your online accounts are secure and watch out for phishing scams⁶. Identity theft in tax season happens when thieves use your Social Security number on fake tax returns⁷. This can lead to more than one return filed with your number.

Secure Online Accounts

Make sure your online accounts, like your IRS Online Account, have strong passwords and two-factor authentication⁶. The IRS won’t contact you by email or social media for personal info⁷. They suggest using security software and strong passwords to fight identity theft.

Recognize Phishing Scams

Watch out for phishing scams that might be phone calls, emails, texts, or social media messages from fake IRS sources⁶. Scam calls might threaten arrest or deportation for not paying taxes⁶. If you think the IRS is contacting you, check with the Treasury Inspector General for Tax Administration⁶. Remember, the IRS always starts with a letter in the mail, so be cautious of unexpected messages.

It’s key to protect against identity theft, online account security, and phishing scams during tax season. By being proactive and spotting fake attempts, you can avoid tax fraud and other financial issues⁶⁷.

“The best defense against identity theft is to be proactive in protecting your personal information and remain vigilant in monitoring your financial accounts and credit reports.”

Tip	Description
Secure Online Accounts	Use strong passwords and two-factor authentication for all your online accounts, including your IRS Online Account.
Recognize Phishing Scams	Be wary of unsolicited phone calls, emails, text messages, or social media posts claiming to be from the IRS. The IRS’s first contact is always through a mailed letter.
Monitor Credit Reports	Check your credit reports regularly to identify any suspicious activity or unauthorized accounts opened in your name.
Secure Personal Documents	Keep your Social Security card and other important documents in a safe place to prevent them from being stolen and used for identity theft.

By following these steps, you can protect yourself from identity theft, keep your online account secure, and spot phishing scams during tax season⁶⁸⁷.

Tax Filing Tips

As you get ready for the 2024 tax season, remember a few key points. If you get updated tax forms like corrected 1099s or Schedules K-1 after filing, you might need to amend your return⁹. But, you don’t have to amend if the change is small, like less than $100 in income or $25 in withholding⁹.

Also, watch out for new due dates for info forms. They might not match the tax return deadline⁹. By keeping up with the latest and using resources, you can make filing taxes easier and might even get a bigger refund. Experian’s tax filing tips offer great advice for the 2024 season.

Exploring Tax Deductions

Charitable contributions can be deducted, subject to certain limits⁹.
Taxpayers who incurred disaster-related losses may be eligible for deductions⁹.

Tax Deduction	Eligibility	Maximum Amount
Charitable Contributions	Subject to limits	Varies
Disaster Losses	Incurred disaster-related losses	Varies

Remember, it’s crucial to keep accurate records and consult with a tax professional to ensure you’re claiming all eligible deductions.

“The key to a successful tax filing season is being proactive, utilizing available resources, and staying organized throughout the process.” –¹⁰

By following these tips, you can make tax preparation easier, increase your refund, and lower stress during the 2024 tax season⁹.

Renew Expiring Individual Taxpayer Identification Numbers (ITINs)

If you use an Individual Taxpayer Identification Number (ITIN) for taxes, make sure it’s current. ITINs expire if not used on a tax return every three years¹¹. ITINs from before 2013 also need to be renewed regularly¹². Not renewing your ITIN can cause delays in processing your tax return and deny tax credits or deductions¹¹.

To renew your ITIN, fill out the latest Form W-7¹¹. You’ll also need to provide original or certified copies of your ID documents, as photocopies won’t be accepted¹¹. For questions about renewing your ITIN, call the IRS at 800-829-1040 within the U.S. or 267-941-1000 from abroad¹¹.

Only apply for or renew an ITIN if you’re claimed on a tax return or file your own¹¹. Renewed ITINs keep the same number and you’ll get a Notice CP565 when it’s renewed¹¹. If you file a tax return with an expired ITIN, you might lose tax credits or deductions, and a math error could happen¹¹.

Keep up with your ITIN renewal for a smooth tax return process and to get the most tax credits and deductions¹¹. The IRS is ready to help with any questions or concerns about renewing your ITIN¹¹.

ITIN Expiration and Renewal	Details
Expiring ITINs	ITINs with middle digits “70” to “88”, and “90” to “99” (assigned before 2013) are considered expired if not included on a U.S. federal tax return for tax years 2020, 2021, and 2022. They will expire on December 31, 2023¹².
Tax Return Requirement	All Form W-7 applications, including renewals, must include a U.S. federal tax return unless exempted¹².
Child and Dependent Care Credit (CDCC)	An ITIN can be assigned to an alien dependent for CDCC if they qualify a taxpayer for the credit (claimed on Form 2441)¹².
Online Account Access	ITIN holders can now access their IRS online account, providing various services such as balance due, payment history, and tax records¹².
Identity Verification	As part of the registration process, ITIN holders need to verify their identity through a video chat process and provide specific documents¹².
Change of Address	Maintaining an updated address with the IRS is crucial to receive notifications about ITIN and return of supporting documentation¹².
Allowable Tax Benefits	The discussion of allowable tax benefits has been expanded, detailed further in the Instructions for Form W-7 PDF¹².
Excluded Workers Fund Payments	New York state residents seeking ITINs can access the state’s Excluded Workers Fund payments¹².
ITIN Purpose	An ITIN is issued by the IRS to assist in tax compliance and processing for individuals not eligible for a Social Security number, solely for federal tax reporting purposes¹².
ITIN Eligibility	The need for an ITIN arises for individuals without an SSN who have U.S. tax obligations and fall into specific categories listed¹².
Name Change Process	Individuals with an ITIN requiring a legal name change must follow a specific process and submit relevant documentation for approval¹².

Utilize IRS Online Resources

The IRS has many online tools to help with filing taxes. One key tool is the Interactive Tax Assistant. It answers many tax law questions, making sure you file and pay right¹³.

Interactive Tax Assistant

The Interactive Tax Assistant helps with tax law questions. It asks questions and gives advice on deductions, credits, and filing. This tool can ease stress and help you use all tax benefits you’re eligible for¹³.

Expiring ITIN Information

The IRS website has info on ITINs that are about to expire. It tells you which ones need renewal and how to do it. Knowing about ITIN expiration helps avoid delays in filing taxes¹³.

Using the IRS’s online tools makes filing taxes easier and less stressful. Check the IRS website for lots of information and tools to help with your taxes¹³.

“The IRS website is a valuable resource for taxpayers, providing a wide range of tools and information to help make the tax filing process more manageable.”

Understand Private Debt Collection Procedures

Taxpayers with federal tax debts might see their bills given to private collection agencies (PCAs) by the IRS¹⁴. It’s key to know that any payments should go straight to the U.S. Treasury, not the PCA¹⁴.

The IRS has teamed up with four PCAs: CBE, ConServe, Performant, and Pioneer¹⁴. These agencies can earn up to 25% of what they collect from taxpayers¹⁴. Remember, tax debts can be collected on for up to 10 years, giving time for payment plans¹⁴.

The IRS checks on PCAs to make sure they follow the rules and don’t bother taxpayers too much¹⁴. But, those with low incomes might find it hard to make payment plans with PCAs, especially if they earn less than 250% of the poverty level¹⁴.

If you owe taxes, think about talking to the IRS about a payment plan or a temporary delay in collection¹⁴. These might be better than dealing with a private collector. You can also report PCA issues to the Treasury Inspector General for Tax Administration (TIGTA) hotline at 1-800-366-4484¹⁴.

Knowing how private debt collection works and your rights can help you handle it better and avoid extra stress or financial trouble¹⁵. Getting advice from a tax expert can also clear up confusion and help with PCA-related tax issues¹⁵.

The Fair Debt Collection Practices Act (FDCPA) sets limits on how debt collectors can talk to people, what they must tell you, and what they can’t do¹⁶. It’s important for taxpayers to know their rights under the FDCPA when dealing with PCAs¹⁶.

Choose a Qualified Tax Preparer

Filing your taxes requires a qualified and trustworthy tax preparer. Start by checking their credentials and making sure they have an IRS Preparer Tax Identification Number (PTIN). This is a must-have by law¹⁷. Paid tax return preparers need a PTIN to work on most tax returns¹⁸.

Verify Credentials

Look for tax preparers with certifications like Certified Public Accountant (CPA), Enrolled Agent (EA), or licensed attorney¹⁸. These pros have a high level of education and skills. They can also talk to the IRS on your behalf about audits, payments, and more¹⁸. Being part of groups like the American Institute of Certified Public Accountants (AICPA) and the National Association of Tax Professionals (NATP) shows they’re qualified¹⁸.

Billing Practices

Watch out for tax preparers who don’t want to see your past tax return or won’t explain their fees. Make sure you know what they charge and how they keep your financial info safe¹⁸. A 2023 survey found the average cost for a nonitemized Form 1040 in 2024 is $251. For an itemized Form 1040, it’s $298¹⁸.

A great tax preparer will review your records and ask about your income, deductions, and credits. They should sign the return with their PTIN¹⁷. Stay away from preparers who suggest shady deductions or credits. Checking a preparer’s background and credentials helps you find a pro who will get you the best refund and reduce your stress¹⁷.

Criteria	Importance
PTIN (Preparer Tax Identification Number)	Required by law for paid tax return preparers
CPA, EA, or Attorney Designation	Indicates higher level of expertise and education
Professional Memberships	Can help identify experienced and qualified preparers
Billing Practices	Ensure transparency and secure handling of financial information

“Choosing the right tax preparer can make a significant difference in maximizing your refund and reducing stress during tax season.”

Conclusion

Following the tax filing tips in this article can help you get a bigger tax refund, lower stress, and make tax season easier¹⁹. It’s important to know the deadlines, use deductions, and keep your identity safe²⁰. Using IRS online tools and picking a skilled tax preparer can help you understand tax filing better. With the right steps, you could increase your refund and get the most out of tax season.

The standard deduction for single people and those filing separately is $13,850 in 2023, a $900 increase from last year¹⁹. For married couples filing together, it’s $27,700, $1,800 more than before¹⁹. Also, it goes up for seniors 65 and older, with couples over 65 getting $30,700¹⁹.

Using tax deductions and IRS resources can help you get a bigger refund and make filing easier¹⁹²⁰. Keep your records right and work with a qualified tax preparer for a worry-free tax season.

FAQ

What are the important tax filing deadlines to be aware of?

The standard tax return filing deadline is April 15th, but it can change if it falls on a weekend or holiday. If you need more time, you can ask for an extension, which moves the deadline to October 15th. But remember, an extension only delays the filing deadline, not the payment deadline. You must pay any taxes owed by April 15th to avoid extra charges.

How can I maximize my tax deductions?

Consider charitable donations as a key deduction. Keep detailed records of your donations, especially if they’re over 0. If you’ve lost money due to a disaster, you might deduct those losses. The deduction amount is reduced by insurance payments or salvage value, and you could even get a net operating loss if your losses are more than your income.

How can I protect myself from identity theft during tax season?

Protect your info by securing your online accounts with strong passwords and two-factor authentication. Watch out for phishing scams, which can come via phone, email, text, or social media. Remember, the IRS always contacts you by mail first, so be cautious of unexpected calls or messages.

What should I do if I receive updated tax forms after filing my return?

If you get updated tax forms like corrected 1099s or Schedules K-1 after filing, you might need to file an amended return. But you don’t have to amend if the changes are small, like less than 0 in income or in withholding.

How can I renew my expiring Individual Taxpayer Identification Number (ITIN)?

Make sure your ITIN is current if you use it for taxes. ITINs expire if not used on a tax return in three years. ITINs issued before 2013 also need to be renewed. Not renewing your ITIN can cause delays in processing your tax return and deny tax credits or deductions.

What online resources does the IRS offer to help with tax filing?

The IRS has many online tools to help with taxes. The Interactive Tax Assistant answers many tax questions. The IRS website also has info on expiring ITINs, including which ones need renewal and how to do it.

How does the IRS’s use of private debt collectors work?

The IRS uses private debt collectors for some tax bills. If your bill goes to a collector, you’ll get letters from both the IRS and the agency. Always pay to the U.S. Treasury, not the collector. If you owe taxes, talk to the IRS about payment plans or delays before dealing with collectors.

What should I look for when choosing a tax preparer?

When picking a tax preparer, look for a qualified professional. Ask for referrals and check their credentials and for complaints. They should have an IRS PTIN and explain their fees and protect your info. Avoid preparers who don’t review your past returns, don’t explain their fees, or suggest shady deductions or credits.

Source Links

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How to Help Prevent Tax-Related ID Theft | Equifax® – https://www.equifax.com/personal/education/identity-theft/articles/-/learn/prevent-tax-related-id-theft/
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Navigating the private debt collection program – https://www.thetaxadviser.com/issues/2019/jan/navigating-private-debt-collection-program.html
IRS Private Debt Collection Agencies: What You Need To Know – https://polstontax.com/blog/irs-private-debt-collection-agencies-what-you-need-to-know/
Debt Collection FAQs – https://consumer.ftc.gov/articles/debt-collection-faqs
Topic no. 254, How to choose a tax return preparer – https://www.irs.gov/taxtopics/tc254
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