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What Do You Need To Prepare For Tax Season?

Tax season can be confusing for many, but here at Coast One Tax Group, we have your back. Getting your tax refund from the IRS has never been easier.

INCOME TAX FILING

If you wish to file taxes online, it’s a simple process. The IRS is set to start accepting federal income tax returns on Jan 24th, and the deadline for filing your federal income tax return is April 15, 2022. Note that this is separate from the state and local tax return deadlines. Be sure to look up your state and local tax laws to determine the deadline for those tax returns.

To file a return, you must:

  • Collect all information and paperwork. This includes a W-2 form from all your employers and receipts for charitable donations if you are itemizing. Also, any earning or interest statements such as a 1099 or 1099-INT form. If you operate a business, you will need to gather receipts for your business expenses and income.
  • Decide your filing status. Being single or married makes a huge difference in the amount of taxes that you may owe.
  • Determine if you want to file online or by mail. Tax preparation apps or software are recommended by the IRS for the most accuracy. Tax returns filed online are generally processed more quickly than paper-filed tax returns.
  • Decide to take the standard deduction or itemize your tax return. If you made significant charitable donations or had large medical expenses, itemizing your tax return may decrease the taxes that you owe.
  • If you owe back taxes, payments are a priority. There are a variety of options for payment plans with the IRS.
  • Submit your tax return by April 15, 2022.
  • It’s generally advised that you keep a copy of your tax return for three years. It can help you prepare and file your next tax return. If you need a copy of a prior tax return, you can fill out and mail Form 4506 to your IRS office along with a $50 payment.

If you are unable to file your return by April 15th, the IRS does offer extensions of up to six months. To receive an extension, you must file Form 4868 with the IRS. This does not, however, give you any extra time to pay your taxes. To stay clear of penalties, you must pay the entire amount owed by April 15th.

tax preparation

ESTIMATING YOUR TAX RETURN

To estimate your tax return, there are several options. Sites like TurboTax and H&R Block offer easy-to-use and quick tax return estimate calculators. Simply answer the questions asked and input your numbers into the calculator. You can always go back to this calculator if anything in your situation that could affect your tax changes. If you do not like the estimated tax due numbers you see, you can always look at alternate scenarios. What if you gave more money to a tax-exempt charity or contributed additional funds to your retirement account?

REFUND STATUS

In general, you will typically receive your tax refund within three weeks of filing if you elect to receive your refund by direct deposit. If you choose to receive a check in the mail, it may take up to two months to receive your refund. You may also check your refund status on IRS website by logging in on IRS.gov and choosing option “Get your Refund Status”.