As time passes, tick-tock… A new tax filing season has begun; do not worry, this is just another one! We’re entering 2025, and as you’re aware, the deadline for filing your tax documents remains open until April 15th.
The Internal Revenue Service (IRS) advises taxpayers to begin taking action now, before last-minute stress sets in. So, while we still have time, let’s get organized to make everything much easier, ensuring that your refund arrives faster! Let’s get started.
Why start now when it’s only January?
As the saying goes, “an ounce of prevention is worth a pound of cure.” Imagine a deadline approaching and you realize you’re missing data or documents, don’t know how much you have to pay, or worse, someone has filed a return using your information.
What a nightmare, right? So, it’s best to get started right away and gradually fill out all of the information they request. Plus, the sooner you file, the faster your tax refunds will arrive this year!
Where do I start?
The IRS has created a section (which you can access by clicking here) where they provide practical tips to assist you with your duties as a taxpayer.
One of the first things you can do is set up an IRS online account, which allows you to access many IRS services without leaving your couch! So, this is one of the first steps you can take to streamline your workflow.
What can I do with one of these accounts?
- Review your most recent return so that everything is in order
- Obtain transcripts of your income and wages (useful if you need information from previous years)
- Request an Identity Protection PIN (IP PIN).
- Pay taxes directly from your account (or set up payments if you have outstanding debts)
- And best of all: you will receive electronic notifications, which means that you will not have to wait for a letter from the IRS to find out something important!
What is an IP PIN and why do you need it?
The IP PIN is a six-digit code that protects your tax return (and more).
If you do not yet have your IP PIN, you can register online through your IRS account, or in person at any office.
What’s new this year?
Yes, the IRS will now accept Forms 1040, 1040-NR, and 1040-SS, even if the dependent is already listed on a previous return. The key to this is to include a valid IP PIN. This will make the process of filing duplicate returns more efficient.
Any other advice?
Don’t leave things to the last minute. Begin by gathering your W-2 forms, 1099 forms, proof of potentially deductible expenses, and any other income and investment-related documents.
Having everything you need on hand from the start will speed up the process significantly!
Don’t lose track of IRS notifications; you know they change on a regular basis, so stay up to date.
Finally, ask for help. If you believe the process is complicated or have questions, there are many tax advisors or software available to make things much easier for you, and while it may require an investment, we guarantee that it will be worthwhile!
So, now that you know everything, tax season is less scary; don’t let anything surprise you and start getting organized right away!
Also See :- The new requirements to process Social Security in the United States
