These three easy tips will help make tax preparation smoother in 2024.
1. Gather all necessary tax paperwork and records for accuracy to avoid missing a deduction or credit. Taxpayers should have all their important and necessary documents before preparing their return. This will help file a complete and accurate tax return. Errors and omissions slow down tax processing, including refund times.
Before beginning, taxpayers should have:
Social Security numbers for everyone listed on the tax return.
Bank account and routing numbers.
Various tax forms such as W-2s, 1099s, 1098s, and other income documents or records of digital asset transactions.
Form 1095-A, Health Insurance Marketplace statement.
Any IRS letters citing an amount received for a certain tax deduction or credit.
2. Remember to report all types of income on the tax return. This is important to avoid receiving a notice or a bill from the IRS. Don’t forget to include income from:
Goods created and sold on online platforms.
Investment income.
Part-time or seasonal work.
Self-employment or other business activities.
Services are provided through mobile apps.
3. Filing electronically with direct deposit is the fastest way to receive a refund. Avoid paper returns. Tax software helps individuals avoid mistakes by doing the math. It guides people through each tax return section using a question-and-answer format.
For those waiting for their 2022 tax return to be processed, here's a special tip to ensure the IRS accepts their 2023 tax return for processing. Enter $0 (zero dollars) for last year's adjusted gross income (AGI) on the 2023 tax return. Everyone else should enter their prior year's AGI from last year's return.
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