Are you thinking about your taxes?

Talk Taxes PDF

Even though we are barely into the new year and have nearly 60 days until taxes are due, now is the perfect time to start thinking about them. Completing as much of your tax preparation and filing as early as possible is beneficial. The more complicated your taxes, the sooner you should begin this journey. It's also important to consider prudent tax planning moves now instead of waiting until after April 15th. Too often, we see tax filing as a burden, but if we have done the proper planning, we often don't encounter as many issues as we imagine.

Are there any advantages to filing your taxes early?
Filing your taxes early comes with several advantages. To start with, you will have easier access to experts, as tax professionals are less busy and more available to answer your questions and quickly file your return. Additionally, filing early reduces the risk of tax filing fraud. Once your social security number has a return filed, fraudsters cannot use stolen identities to file a false return. Moreover, you are likely to receive your refund earlier, as returns filed earlier in the tax season are processed faster. Another significant benefit is the reduction of stress associated with an approaching deadline. Even if you owe taxes, you can file early and pay by the filing deadline.

Is there a time that you should work with a tax professional instead of doing it yourself?
If you have complicated returns, own a small business, or are a self-employed gig worker, working with a tax professional can be highly beneficial. They have a deep understanding of tax laws and can help you avoid overpaying taxes. Additionally, if you experience unique situations in a year, such as receiving an inheritance or having a new source of income, a tax professional can provide valuable guidance. Generally, the expertise and assistance of a tax professional is worth the fee you may need to pay.

Are there any other tax moves to make every year besides just filing your taxes?
You should always review your exemptions and deductions with your employer and adjust them based on your most current tax burden. By aiming to get a small refund or owe a small amount, you can avoid surprises at tax time and have more money available throughout the year. Additionally, consider estimated taxes if you have gig or small business income, and seek advice when needed. If you have older children, decide whether it is more beneficial for them to file as head of household rather than being claimed as a dependent. This might be more advantageous for them than for you to continue claiming them on your taxes.

Where can people get help filing taxes?
The IRS and the Government offer several different services such as the Volunteer Income Tax Assistance (VITA) program for eligible individuals or the Tax Counseling for the Elderly (TCE). AARP members might be eligible for the AARP Tax Foundation Tax-Aide service. For low-income filers, the IRS offers the IRS Free File program, which is an online service. Military members can get help from MilTax, a program offered by the Department of Defense. If none of those are available to you, consider working with a verified tax or online service. Your local financial institution might be offering a partnership that will have discounted rates for their members/customers. Just always be certain you are working with a legitimate company.