Investor Education | Are You Ready For Tax Season?
Although the federal income tax filing deadline isn’t until April, the 2024 tax season starts is well underway. But you don’t need to wait to start getting ready. There are some things you can do now to help you prepare for filing your 2023 tax return.
If you do not already have an IRS online account, there is no better time than now to create one. With an online account, you can access important information, such as your prior year’s adjusted gross income (AGI), which can be helpful during tax season.
Here are some other things the IRS says you can do with an online account:
1. Request tax transcript documents
2. Request outstanding tax balance as well as schedule payments
3. Check your payment history
4. Reference current payment plans and apply for new ones
5. Review IRS notices before they arrive in the mail
6. Check bank account information
Organize 2023 Tax Documents
While an IRS online account can help you access tax documents for prior years, you’ll still need to gather all your documents for 2024. This might include documents regarding life changes, such as having a new child or getting married. It’s also a good idea to organize receipts for expenses, no matter the size of the expense.
W-2s and 1099s will be required, but if you’re self-employed or work as a freelancer, you might want to organize receipts and review bank statements that you already have access to.
It’s important to have all year-end documents to file your income tax return. Having all the necessary information before you file minimizes the risk of making a mistake and needing to file for an amended return.
Review IRS Tax Changes for 2024
IRS rules can change from year to year. So, it’s a good idea to review any 2024 tax changes before you file your tax return. For example, the standard deduction amounts are inflation-adjusted each year, so they are higher for 2024 than they were last year. Income tax brackets and several contribution limits (including for medical and retirement savings accounts) have also been adjusted for inflation. These are things to keep in mind going into the 2024 tax season.
Consider A Tax Professional
Now is a good time to consider who will prepare your taxes or if you will file them yourself. There are plenty of tax preparation options available, including software that can guide you through the process. You might also choose to hire a tax professional, such as an accountant, enrolled agent, or tax lawyer, especially if your tax situation is complex.
This newsletter/advertisement is produced for our clients, friends and associates through an arrangement with WPI Communications, Inc. for the representatives’ use. Although the editorial content is professionally researched, written and edited, neither our firm nor any of its agents, representatives or associates make any representations regarding the accuracy of the content or its applicability to your situation. The information in this communication is not intended as tax or legal advice. In accordance with IRS Circular 230, the information provided herein may not be relied on for purposes of avoiding any federal tax penalties. Any tax advice contained in the body of this material was not intended or written to be used, and cannot be used, by the recipient for the purpose of 1) avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions, or 2) promoting, marketing or recommending to another party any transaction or matter addressed herein. You are encouraged to seek tax or legal advice from an independent advisor.
Learn More | Contact Our Investment Specialists
Investment Consultant
Tam Hubert, CFP®, CFA
Investment Assistant
Kristi Remus
