Tax season is underway. Here are some tips to navigate it

NEW YORK (AP) — Tax season is here in the United States, and for many people, it’s tax season. Submission of tax return It’s a daunting task and often left until the last moment. But if you want to avoid the stress of looming deadlines, start organizing as soon as possible.

Whether you file your taxes yourself, go to a tax clinic, or hire a professional, you can take advantage of the tax system. complex and stressful. Courtney Alev, consumer finance advocate at Credit Karma, recommends going easy on yourself.

“Breathe. Take a moment, work on it for an hour, repeat it over the weekend, and I think you’ll find it’s a lot easier than you think,” Alev said.

If the process seems too complicated, there are plenty of free resources to help you get through it.

Here’s what you need to know:

When is the tax filing deadline?

Taxpayers have until April 15 to file their 2023 returns.

What do I need to file my tax return?

The required documents may vary depending on your individual case, but here is a general list of what everyone will need:

-social security number

—W-2 form (if employed)

—1099-G, if unemployed

—1099 form if self-employed

— Savings and investment records

— Qualified deductions for education expenses, medical expenses, charitable donations, etc.

—Tax credits such as the child tax credit and the retirement savings contribution credit.

To find a more detailed list of documents, please visit: IRS website.

Tom Oseven, director of tax content and government relations at the National Association of Tax Professionals, says he collects all of his documents in one place before starting his tax return, and if his financial situation has changed significantly, he also includes documents from last year. We recommend that you prepare one. .

Mr Oseven also advised taxpayers: Personal information protection PIN number Work with the IRS to prevent identity theft. Once you create a number, the IRS will require it to file your tax return.

How do I file my taxes?

You can submit your file in one of the following ways: online or paper tax. However, there is a large time difference between the two options. IRS paper filings can take up to six months to process, but electronic filings cut that down to three weeks.

What resources are available?

The IRS is piloting a program that allows you to file your federal taxes online for free. direct file. The program is currently available in 12 states, including California and New York. W-2employee wage and tax statements.

Apart from direct filing, the IRS provides the following services: Free tax preparation guide It will do the math for you. People with an annual income of $79,000 or less are eligible. If you have questions while completing your tax form, the IRS also provides the following questions: interactive tax assistant A tool that can provide answers based on your information.

In addition to popular companies such as turbo tax H&R Block also allows taxpayers to hire qualified professionals such as CPAs. The IRS provides: Taxpayer Directory all over America.

of The IRS also funds two types of programs Services that provide free tax assistance include: VITA and the Tax Counseling Program for Seniors (TCE). Individuals with an annual income of less than $64,000, who have a disability, or who speak limited English are eligible to participate in the VITA program. People over the age of 60 are eligible to participate in her TCE program. The IRS has a site To find organizations that host VITA and TCE clinics.

If you have tax issues, here are some questions you may have: Clinics nationwide It will help you solve these problems. Generally, these tax clinics also offer services in other languages ​​such as Spanish, Chinese, and Vietnamese.

How can I avoid mistakes on my tax return?

Many people fear getting into trouble with the IRS if they make a mistake. Here’s how to avoid the most common ones:

— Double-check the name on your Social Security card.

When Oseven works with clients, he always asks them to bring their Social Security card to double-check their number and legal name. These may change upon marriage.

“They may have changed the name, but Social Security didn’t change it,” Oseven said. “If your social security number does not match the first four letters of your last name, your return will be rejected and processing will be delayed.”

—Find your tax statement if you have opted out of paper mailings.

Many people want to opt out of snail mail, but opting out may also include tax documents.

“Just because you haven’t received anything in the mail doesn’t mean there aren’t informational documents that you need to be aware of and report accordingly,” Oseven said.

—Be sure to report all income.

If you had more than one job in 2023, you’ll need a W-2 form for each.

What about the child income tax deduction?

At the beginning of this year, Congress announces bipartisan agreement Strengthen the current child tax credit. Currently, the tax credit is $2,000 per child, but he will only be reimbursed $1,600. The bill would gradually increase the maximum refundable child tax credit to $1,800 on 2023 tax returns, $1,900 on next year’s tax returns, and $2,000 on 2025 tax returns. Masu.

If the deal goes through, about 16 million children from low-income households would benefit from the child tax credit expansion, according to the Center on Budget and Policy Priorities. Lawmakers hope to pass this bill as soon as possible.

What should I do if I make a mistake?

Mistakes happen, and the IRS takes a different approach depending on each case. Generally, if you make a mistake or leave something out on your tax records, the IRS will audit you, Alev said. An audit means the IRS will request additional documentation.

“Generally, they are very understanding and willing to work with people. You won’t get arrested if you fill in the wrong field,” Alev said.

What happens if I don’t apply for years?

you You can file your taxes late And even if you were supposed to get a refund, you might still get it. If you haven’t filed a return in years and owe the IRS money, you may face penalties, but the IRS will work with you to manage your payment plan.

How can I avoid scams?

Tax season is golden time tax fraudsaid Oseven. These scams can occur via phone calls, text messages, emails, and social media. The IRS will not use any of these methods to contact taxpayers.

In some cases, fraud can be perpetrated by your tax accountant, so it’s important to ask questions. For example, if your tax professional tells you you’ll get a larger refund than you received in previous years, that could be a red flag, Oseven said.

If you’re not sure what your tax professional is working on, get a copy of your tax return and ask questions about each entry.

How long should I keep copies of my tax return?

It’s a good idea to keep a record of your tax returns in case the IRS audits items you reported years ago. Oseven recommends keeping copies of your tax returns for up to seven years.

How do I apply for a tax extension?

If you run out of time to file your tax return, you can file your tax return. expansion. However, it’s important to note that the extension is only for filing taxes, not paying them. If you owe taxes, you must pay the estimated amount on time to avoid paying penalties and interest. If you’re expecting a refund, you can still get your money when you file your tax return.

If you file for an extension, you will have until October 15th to file your taxes. You can apply for an extension through your tax software or your preferred preparer. IRS Free File via tools or email.

What happens if I file my taxes late?

If you fail to file an extension after the tax deadline, you may be subject to several penalties.If the deadline has passed, you may receive it Non-declaration penalty. According to the IRS, the penalty is 5% of the unpaid tax for each month your tax return is late.

If you owe taxes and do not pay by the tax deadline, non-payment of fines. Interest is also charged on both the taxes and penalties owed. If you need a refund, there will be no penalty and you will receive the amount of tax owed. If you have special circumstances that prevent you from filing or paying your taxes on time, you may be able to: Remove or reduce penalties.

If you owe too much tax, you can file a claim. payment plan. A payment plan allows you to pay it back over time.