Stress-Free Tax Season Preparation Tips: Get ready for the 2024 tax season – it’s just around the corner! While you’ve got until April to file, there’s no need to wait. Start prepping now, even before late January hits. Doing a few things early can make filing your 2023 tax return way easier.
Let’s dive into simple steps to get you ready for a stress-free tax season!
How to Create an IRS.gov Account
If you haven’t already, creating an IRS online account is a valuable step for managing your tax-related information efficiently. Having an online account allows you to access important details, such as your prior year’s adjusted gross income (AGI), which may be required during this tax season.
Benefits of an IRS Online Account
- Request Tax Transcripts: Easily request transcripts of your tax records.
- Check Outstanding Tax Balance and Schedule Payments: Monitor and manage your outstanding tax balance. and, Schedule tax payments for added convenience.
- View Payment History: Access a comprehensive view of your tax payment history.
- Review Current Payment Plans and Apply for New Ones: Evaluate your existing payment plans. and, Apply for new payment plans as needed.
- View IRS Notices Electronically: Get a preview of IRS notices before they arrive in the mail (Note: Not available for all types of notices).
- Update and Save Bank Account Information: Easily update and securely save your bank account information.
By creating an IRS.gov account, you empower yourself with convenient access to essential tax-related services, making the tax season smoother and more manageable.
Organize Your 2023 Tax Documents and Prepare for Tax Season
If you’re aiming for a stress-free tax season, start by creating an IRS online account to access prior years’ tax documents. However, don’t forget to gather all essential documents for the current tax year, 2023.
This includes records related to significant life changes like welcoming a new family member or tying the knot. Efficiently organizing receipts, from property taxes to mortgage interest, is a smart move. Doing this right after the holidays, before tax season kicks in, can significantly simplify the filing process.
In addition to the standard W-2s and 1099s (anticipated in early 2024), freelancers and self-employed individuals should proactively organize receipts and review accessible bank statements. Being proactive ensures you have a comprehensive set of information, reducing the likelihood of errors and the need for later amendments.
Remember, having all year-end documents at your fingertips is crucial when filing your income tax return. This proactive approach not only streamlines the filing process but also minimizes the risk of errors that might necessitate filing an amended return.
Reviewing IRS Tax Changes for 2023
As tax rules evolve annually, staying informed about any 2023 tax changes is a wise step before filing your tax return in early 2024. Notable adjustments include inflation-driven changes to standard deduction amounts, making them higher for 2023 compared to the previous year.
Additionally, income tax brackets and various contribution limits, such as those for medical and retirement savings accounts, have been adjusted to account for inflation.
Ensuring you’re aware of these changes is crucial for accurate and up-to-date tax filing. Regular reviews of IRS updates empower you to maximize benefits and comply with the latest regulations.
Read More: Tax Changes and Key Amounts for the 2023 Tax Year
Making the Right Tax Preparation Choice for You
As you embark on your tax preparation journey, now is the opportune moment to decide whether to tackle the task yourself or seek professional assistance. The array of options available ensures there’s a suitable method for everyone.
Consider user-friendly software like Intuit’s TurboTax or H&R Block, which can seamlessly guide you through the process. For those with complex tax situations, engaging a tax professional, be it an accountant, enrolled agent, or tax lawyer, might be a prudent choice.
A noteworthy option for those with an Adjusted Gross Income (AGI) of $73,000 or less is the IRS Free File program. This initiative not only provides free federal tax filing but may extend to state income tax returns through partnering services.
In conclusion, take the time to evaluate your comfort level, the complexity of your tax situation, and potential cost considerations. Whether you choose the assistance of technology or opt for the expertise of a professional, the key is to make a well-informed decision that aligns with your individual needs. Secure your financial peace of mind by making the right choice for your unique tax scenario.
Get live Tax and Finance updates, US Business Tax and Bookkeeping, and the latest India & US News and business news on Edueasify.
