The Internal Revenue Service today provided a checklist of reminders for consumers as they get ready to submit their 2022 tax returns, in order to assist taxpayers as they navigate the start of tax filing season.
These quick actions will simplify tax preparation in 2023, from gathering documentation to completing a tax return:
1. Compile tax records and papers and check for correctness to ensure that no deductions or credits are overlooked.
Before preparing their return, taxpayers should have access to all of their pertinent paperwork. This aids taxpayers in submitting an accurate and comprehensive tax return. Errors and omissions cause delays in tax processing, including refund timeframes.
Taxpayers require the following information before they start:
- Social Security numbers for each person whose name appears on the tax return,
- the routing number for a bank
- a variety of tax papers, such as W-2s, 1099s, 1098s, and other income documents or records of transactions involving digital assets,
- Form 1095-A, the Health Insurance Marketplace statement, and any letters from the IRS mentioning money earned for a specific tax break or credit are examples of these documents.
2. Don’t forget to include every source of income on your tax return.
A notification or charge from the IRS won’t be issued if you do this. Do not forget to include revenue from:
- online platforms that generate and sell products,
- Investment earnings,
- Seasonal or part-time employment,
- Owning a business or engaging in other entrepreneurial endeavours, and Mobile app services.
- To prevent refund processing delays, file electronically with direct deposit.
3. Eliminate paper returns. Calculated using tax software, errors are prevented.
Utilizing a question-and-answer structure, it leads users through each area of their tax return.
Here’s a specific advice to help folks who are waiting for the IRS to process their 2021 tax returns to make sure the IRS accepts their 2022 tax returns. The adjusted gross income (AGI) for the prior year must be entered as $0 (zero dollars) on the 2022 tax return. The AGI for everyone else’s preceding year should be entered from the 2017 return.
4. Those who qualify for tax relief can get free assistance while filing online. Those who qualify as taxpayers could also be eligible to get free assistance.
To file a tax return on paper, IRS Free File offers a free online option. Everyone who earned $73,000 or less in 2022 is eligible for the IRS Free File programme.
As part of a 21-year collaboration with the IRS, top tax software vendors offer IRS Free File, which makes their online products accessible for free. There are seven English-language items and one in Spanish this year. Users must go via the IRS website to obtain these services.
The IRS’s Free File Fillable Forms can be used by anyone who earn more over $73,000. These are the IRS paper forms’ digital counterparts. People who are confident with tax preparation should use this package.
Through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programmes, qualified taxpayers can also get free one-on-one assistance with filing their taxes anywhere around the country.
5. Take cautious while picking a tax expert.
The majority of tax return preparers treat their clients with respect, are trustworthy, and offer top-notch service. False income tax returns are filed by dishonest tax return preparers, albeit they do exist. The IRS provides extra information on selecting a tax professional on IRS.gov, including a Directory of Federal Tax Return Preparers with Credentials and Selected Qualifications.
6. To avoid holding on the phone for long periods of time, research the IRS online first.
The IRS advises using IRS.gov to find tax information, track a refund, and make payments rather than calling in to a call centre. Online tools and resources are available around-the-clock, so there is no wait or requirement for an appointment. In particular, the Let Us Help You tools and the Interactive Tax Assistant from the IRS are useful.
The IRS also recommends that people keep up with crucial tax information online by:
- Keeping up with the newest tax subjects and notifications requires following the IRS’ official social media channels and email subscription lists.
- Using the IRS2Go mobile app, IRS YouTube videos, or the IRS’s social media accounts on Twitter, Facebook, LinkedIn, and Instagram will keep you up to speed on any changes to the tax code, fraud alerts, initiatives, goods, and services.
(Source: This article was originally published by irs.gov: IR-2023-17 on January 31st, 2023.)