Tax season can be daunting, but don’t let it overwhelm you! Last year, we shared tips on what to do with your tax return, and this time we’re focusing on tax season preparation. With some planning and organization, you can make sure that you’re ready when the time comes. Here are a few tips and tricks to help you get equipped for tax season 2023.
Gather your documents
The first step in getting ready for tax season is gathering all of your documents. This includes any income statements, like W-2s or 1099s, as well as any deductions or credits you may be eligible for. Make sure to keep all of these documents in one place so that they are easy to access when needed. Additionally, if you made any donations throughout the year, make sure to save receipts from those as well.
Understand tax changes
It’s important to stay up-to-date on any new tax changes that have been implemented since last year. While most of the standard deductions remain the same, there may be some new credits or incentives available that could lower your overall tax amount. New Jersey has incentives for working individuals and families that could help put more money back in your pocket. The IRS also lists any changes that could affect your tax refund in 2023.
Organize your finances
Once you’ve gathered all of your documents and familiarized yourself with the latest tax changes, it’s time to get organized. Knowing how much money you made throughout the year will help determine what forms need to be filed and how much you need to pay. Take some time now to organize all of your financial information so that filing taxes will be a breeze come Tax Day, which is Tuesday, April 18th this year.
Determine how to file
There are two main ways to file your taxes and what you choose will depend on your income level and comfort with the filing process. If you own property or run a business, it’s likely best to work with a professional. Whereas single individuals with one source of income may find it easier to use tax software.
First Financial members get access to tax season discounts through Love My Credit Union Rewards. Members can save up to $15 on TurboTax federal products, and $25 for new clients on tax services through H&R Block (returning clients will receive Tax Identity Shield for free, a $35 value).*
Tax season doesn’t have to be scary! With a little preparation and organization now, you can make sure that everything runs smoothly come April 18th. If you’ve already filed for this year, follow these steps now so that come tax time next year – you’ll already have everything taken care of in advance. Have more questions? Stop in your local branch to speak with a representative today!
*Limited time offer. Terms, conditions, features, availability, pricing, fees, service and support options subject to change without notice. Intuit TurboTax®and H&R Block are tax preparation software products offered to our members through Love My Credit Union Rewards and are not products of this credit union.