Taxes are probably the last thing on your mind as the holidays quickly approach. However, the IRS has some quick and helpful tips for those who are anxious to get their yearly tax filing out of the way (or for those who would simply like some advice on how to begin preparing), so read on for some helpful tips.
- Keep Copies of Your Tax Returns Handy
To make this upcoming tax season just a bit smoother, the IRS recommends keeping copies of your prior year’s tax return – along with the appropriate supporting documentation – handy. Not only will it aid you in filing the new return, it will also have the adjusted gross income (AGI) amount that you will need to e-file.
- Make Adjustments to Your Form W-4
If you want to receive a larger refund this year (or pay a smaller tax bill), consider making changes to your Form W-4. If you typically receive a large refund you can get more money withheld each paycheck by claiming additional withholding allowances. If you usually end up paying additional taxes every April, the IRS recommends having more taxes withheld or, at the very least, making quarterly payments to help ease a possible financial burden.
- Expecting Refunds
Most of us typically expect to receive our refunds within 21 days of filing. While the IRS says that is true in most cases, they also caution against relying solely on our refunds for expenses – especially this upcoming tax season. A new law requires the IRS to hold entire refunds until February 15 for any returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). After that date, you can check the status using the Where’s My Refund? tool online or the IRS2Go App.
For additional tips and tricks on how to prepare for this upcoming tax season, visit IRS.gov.