The 2024 tax-filing season has begun and the IRS has offered a set of six important tips designed to help taxpayers navigate the process with ease and accuracy. These recommendations aim to minimize errors, expedite refund processing, and ensure taxpayers take full advantage of available deductions and credits.
The IRS encourages taxpayers to utilize these tips, many of which are detailed on the IRS.gov "Let us help you" page.
1. Gather Necessary Documents
Taxpayers are advised to compile all essential paperwork and records before filing. This includes Social Security numbers for everyone listed on the return, bank account and routing numbers, and various tax forms such as W-2s, 1099s, 1098s, and records of digital asset transactions. Additionally, Form 1095-A for health insurance and any IRS letters regarding deductions or credits should be on hand to avoid errors and omissions that could delay processing and refunds.
2. Report All Income
To prevent receiving notices or bills from the IRS, taxpayers must report all income types. This encompasses income from goods sold online, investments, part-time or seasonal work, self-employment, and services paid through mobile apps.
3. File Electronically
The IRS emphasizes the benefits of electronic filing with direct deposit, which is the quickest method to receive refunds. Tax software can help avoid mistakes by performing calculations and guiding users through the tax return process.
4. Utilize Free IRS Resources
Eligible taxpayers can take advantage of IRS Free File, available to individuals and families earning $84,000 or less in 2024. The Direct File program, now available in 25 states, offers a free online filing option directly with the IRS, supporting more income types and credits. For those earning over $84,000, Free File Fillable Forms are available. Additionally, the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs provide free one-on-one tax preparation for qualifying individuals.
5. Consider Tax Filing Options
Taxpayers can choose to file taxes personally, use online services, or hire a professional. The IRS advises careful selection of tax professionals, as most are reputable, but some may file false returns. The IRS provides a Directory of Federal Tax Return Preparers with Credentials and Select Qualifications to assist in choosing a reliable tax pro.
6. Leverage Online IRS Tools
IRS.gov offers a range of online resources to answer tax questions, check refund statuses, and make payments without the need for appointments. Tools such as the Interactive Tax Assistant and the "Let us help you" resources are available 24/7 to support taxpayers throughout the filing process.
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