5 Tips to Make Filing Your 2023 Taxes Simpler
Filing your taxes can feel like a big task to take on each year, but there are steps you can take to make the process easier. Here are a few to help get you started.
Note: This post features businesses participating in our Local Business Partner Program
It’s the start of the new year which means it’s time for tax season. Filing your taxes can feel like a big task to take on each year, but there are steps you can take to make the process easier. Here are a few to help get you started.
Take note of important dates.
The deadline to file taxes is April 18 but if you see yourself falling short of the date, plan on filing for an extension. This extension will allow you to move your deadline to October 16 but remember, you shouldn’t wait too long to pay back what you owe, as you’ll accrue interest and possibly penalties.
Determine if you’ll file your taxes or work with a tax preparer
There are several ways to tackle your taxes: you can fill out the IRS forms needed (IRS Form 1040 or 1040-SR) and send them via mail, file your taxes using a tax professional or use online tax software like TurboTax to get them done. If your adjusted gross income (AGI) was $73,000 or less, then you may qualify to do your taxes online for free using the IRS Free File Provider.
If your tax situation is more complex, you own a business or have a few side jobs or if you’re looking to understand the process better for future filings, seeking professional guidance can help. Checking PLUS account holders have access to exclusive discounts for tax services at several local locations:
- Axemia Bookkeeping & Tax Services$25 off the first appointment
- DP Williams LLC
- Reduced base rate to Checking PLUS members.
- Elizabeth A. Lopez, CPA, PC5% discount off of the basic tax preparation fee for an individual tax return
- The Fremont GroupOne month of free consulting services and a free two-day initial consultation.
Compile all of your tax information
Whether you’re filing yourself or having someone help you, you’ll need your tax information handy to get started. You’ll want to gather your proof of income, tax-deductible expenses, and other information to help you attain any tax credits. Here are just a few items you’ll need:
- Social Security numbers (for you, your spouse, children and any other dependents, if any)
- W-2 forms (if you have more than one job, you’ll have more than one W-2)
- 1099 forms (a record that a business or person that is not your employer has paid you)
- Retirement account contributions (IRAs, Roth IRAs)
- Property taxes and mortgage interest
- State and local taxes paid
- Educational expenses
- Medical bills that were not reimbursed to you
- Last year’s federal and state tax returns
- Charitable donations
Familiarize Yourself with Rules on Credits and Deductions
Tax deductions and credits can dramatically lower your tax payment or, in the case of a refund, boost it. In addition to adding a unique provision for charitable deductions, the American Rescue Plan Act temporarily raised several tax benefits. Check the qualifying criteria and deduction limits to see what's available because many programs are expiring now. Below are a few tax credits to consider:
- Child tax credit
- Earned income tax credit
- Premium tax credit
- Clean energy vehicle credit
- Donations to charity
Don’t forget about your gig/side work.
Did you drive for a rideshare service or deliver food for a popular app? If you answered yes, you’ll need to report any money earned for those side gigs and pay taxes on it. The IRS provides more information to help make managing your gig work taxes easier with the Gig Economy Tax Center. You can create an account online, allowing you to find forms, keep records, deduct expenses, and file and pay taxes for your gig work.
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*A $4.95 monthly fee applies when you enroll for Checking PLUS. You may cancel at any time by contacting the credit union by phone at 520-794-8341, through secure email form, or in person at any Hughes branch location.