Tax time is here, and we want to help you get your taxes done right the first time. Here are some tips from our Coral Gables tax attorney to help check this item off your to-do list.
While many individuals file their tax return as soon as they have received all the necessary documents, the IRS imposes a deadline of April 15. The deadline to file your 2022 federal tax return is April 18, 2023. We get a few extra days this year because April 15 is a Saturday, and the next business day, April 17, is recognized as Emancipation Day in Washington, D.C.
Other than filing on time, our Coral Gables tax attorney offers these tips for a relatively stress-free tax season.
File For Free If You Can
The IRS’s Free File program allows you to use its guided tax preparation system to file your federal income taxes. This program lets you partner with private-sector tax preparation firms to provide free online tax preparation and filing services to qualified individuals. To participate, you must start at the IRS website, as going directly to the private company website will not qualify you to access the services of the Free File Alliance in the Free File program.
Check Your Deductions
Online software programs are excellent at finding deductions. There may be others that you can look into, however.
IRA Contributions – A smart way to lower your tax bill is to max out your traditional IRA contributions. The contribution limits are $6,000 for those under the age of 50 and $7,000 for those over 50. Making these contributions before the April 18 deadline will lower the amount of taxes you owe.
Health Savings Account – Another way to lower your tax bill is by maxing out your contribution to your HSA account. This money is triple tax-advantaged because the contributions are pre-tax, the earnings are tax-deferred, and withdrawals from this account are tax-free since they are medical expenses. A hefty HSA account is also helpful if you need medical treatments or prescriptions.
Report Unemployment Benefits
Unemployment benefits are taxable income and must be reported when you file your tax return. Even if your unemployment only lasted a short time, any benefits you received must be included in your tax return. Neglecting to report this income can cause your return to be rejected.
Double-Check Your Return
Sometimes minor mistakes can lead to your tax return being rejected. Check these details before clicking “Submit.”
- The spelling of your name
- Your Social Security number
- Your bank account information
- Your employer’s EIN (employer identification number) on your W-2 or 1099
- Check your math if filing a paper return
- Sign and date your return if filing by mail
Track Your Return
Once you have filed your tax return, you can track its status online by creating an account with the IRS. Enter your Social Security number, filing status, and the exact amount on your return to see where your return is in the process. You can access your tax information at any time using this online guide. You can also follow the status of your refund by using the Where’s My Refund? tool.
Casais & Prias Is Your Tax Defense Legal Team
Our Coral Gables tax attorney, Rolando Casais, Jr., is a former IRS agent with extensive experience representing individuals, businesses, and tax preparers on various tax matters. He knows how the IRS works and how to help you deal with them. If you have questions about your tax return or if you have received a letter from the IRS, contact us.