Tax season is upon us. While everyone’s financial situation is different, there are some basic guidelines to get you started.
This is the quickest way to get your tax refund. There are many online platforms that make filing your taxes safe and easy. You’ll need your account number and your bank routing number for a direct deposit.
The Internal Revenue Service (IRS) will need to know who is filing and who is covered under your tax return. Be sure to have your social security number and date of birth ready for you and other members in your household including your spouse and dependents.
This includes all sources of income, not just from a job. Other examples of income are investment income, IRS or pension distributions, Social Security benefits, unemployment or others you might not think of right away, like jury duty or gambling winnings.
These adjustments can lower the amount of your taxable income and potentially increase your tax refund. Adjustments could be IRA contributions, energy credits, student loan interest or Medical Savings Account (MSA) contributions.
Itemized Tax Deductions and Credits
There are also several deductions and credits from the government to lower your taxes. Some examples of these include childcare costs, education costs and charitable donations.
Taxes Already Paid
Make sure you have documents for any taxes you’ve already paid so you don’t overpay. This could be state and local income tax, real estate tax or personal property taxes.
For other helpful information and important dates, visit the IRS website for more.