Tax season is upon us, so we have compiled a few tips that can help you better prepare for the season ahead. Though Tax Day is a few months away, taking a few preparation steps now can become beneficial for when it eventually arrives. Check out these tax season tips to help you be prepared.
Get Organized
Create a designated space in your home that can collect and store various forms that you will begin to receive at this time of year. Keeping organized can better help you find the documents when you need them. With your 2022 tax documents, such as forms W-2, 1099, 1098, and other forms on hand, you will be able to quickly access them when you are ready to begin filing. Review this tax prep checklist and others ways to get financially organized in the new year.
Decide Who Will File Your Taxes
There are three ways to file your taxes:
- Fill out paper forms yourself
- Use a free or paid tax software that calculates the math and fills out forms for you
- Hire a tax professional to file your taxes
Consider your filing options if you plan to self-file, use software, or hire a professional to file your 2022 taxes. Major life events and changes that occurred in 2022 may complicate your taxes and require a professional or CPA. Significant life changes can include marriage, divorce, and birth, Adoption, or death in the family.
Review and Update Your Beneficiaries
While you’re organizing documents and evaluating your finances and budget in the new year, take some time to review and update your beneficiaries. Name both primary and secondary beneficiaries, if applicable. Here are a few policies to check:
- Life insurance
- Retirement accounts
- Vehicle ownership and real estate property
- Investments and retirement accounts
Beware of Tax Scams and Fraud
IRS scams are often abundant throughout this time of year. Scams can range from criminals impersonating IRS agents, malicious links, phone calls to lure your personal information from you, and more. Many other typos of tax scams all aim to steal your personal information. Check out trending scams for 2022 to better prepare for the season ahead. You can also spot these red flags of tax scams by knowing the signs.
- The IRS will never contact you through social media
- The IRS will never leave you a prerecorded voicemail
- The IRS will not want you to pay with gift cards or prepaid debit cards
- The IRS will not threaten you with an arrest, deportation, or revoking your driver’s license.
Before sending important and personal information, use your best judgment and always go to the source of the website www.IRS.gov.
File before the deadline
Don’t forget to file your taxes before the deadline. Make copies of important documents, if necessary. It’s also wise to make copies of your correspondence and use only the U.S. Postal Service as a form of delivery. The deadline to file your federal income tax is Tuesday, April 18, 2023.
Borrow Smart
If you’ve completed your taxes and owe more than you’ve anticipated, Eastex Credit Union can help! Our personal loans can get you the funds you need with low-interest rates, easy terms, and affordable payment options. Contact us for any of your tax season needs!
