Top Tips To Navigate Tax Season

The federal tax deadline is fast approaching, and if you haven’t already filed your taxes, it’s time to do so. We’re here to help make this process as hassle-free as possible. Follow these tips to navigate this tax season with ease:

Tip 1: Collect All Tax Documents

The first thing to do when preparing your tax return is to gather all the forms you’ll need. These include receipts, W-2s, canceled checks, 1099s, and other income documents. You will need to fill out a series of forms when you file your taxes. You can complete and print these forms from the IRS website, order them by phone or pick them up in person at locations like libraries and post offices.

Tip 2: Easily File Online

The IRS offers taxpayers many tools to file their taxes online. If you meet certain specific income requirements, you may qualify for free tax return preparation. You can also receive your refund faster by enrolling in the direct deposit program.

Tip 3: Report the Benefits You’ve Received

Millions of people received unemployment benefits because they were out of work due to the pandemic. These benefits must be included in your federal tax return. But the Economic Impact Payments, otherwise known as stimulus checks, aren’t taxable. So you don’t need to report this as part of your income.

Tip 4: Claim the Credits You’re Eligible For.

Filers preparing their 2021 tax returns can claim different credits. Read about the different kinds of tax breaks that could reduce the amount of money you need to pay in taxes.

– If you did not receive an Economic Impact Payment that was due to you, the IRS may issue a Recovery Rebate Credit on your 2021 federal tax return.

– In the American Rescue Plan of 2021, eligible families received advance payments on their Child Tax Credit. You can claim the full 2021 Child Tax Credit if you received no payments in advance. If you did, compare your total amount to what you’re actually entitled to receive.

– If you have children and low to moderate income, you may be able to claim the Earned Income Tax Credit (EITC). Even if you do not owe any taxes or are not required to file a return, you still have to file in order to be eligible.