Introduction 

As a new season comes along, it is time to dive into the intricacies of tax filing. Tax laws and regulations are constantly changing, and technology keeps bringing simpler ways to go through the tax process. 

Whether you’re used to filing taxes or you’re the kind of person whose brain jumbles up at the sight of numbers, this guide will walk you through everything you need to know about tax season 2024. 

Stay up to date with the Current Tax Laws 

It is important to stay up to date with the current tax laws as they may impact tax rates, deductions, and even filing deadlines. Familiarizing yourself with these changes can prevent unintentional tax fraud and increase your potential for higher refunds. 

Currently, several alterations have been made to deductions, credits, income tax brackets, and retirement account contribution limits. 

Consulting with a tax professional will ensure you don’t encounter any issues during your tax filings.   

Get Your Documents 

Filing your taxes is a strenuous process that involves many moving parts. Hence, it is essential to gather all the documents you will need to complete the procedure. It might even be helpful to create a checklist to ensure you are not missing out on any essential document before you begin the process. 

The documents you will need to file your taxes are:

1. Income Documents

• W-2 Form: provided to employees from employers. 
• 1099 Forms: reporting various types of income such as interest and dividend income, income from freelance or gig work, unemployment benefits, retirement accounts, etc. 
• K-1 Forms: for trust beneficiaries, partnerships, shareholders, etc. 
• Other income received like alimony, gambling winnings, etc. 

2. Deductions and Credit Documents 

• Health Savings Accounts (HSA) contributions 
• Receipts such as property taxes, medical expenses, charity donations, business expenses, mortgage interests, etc. 
• Retirement account contributions 

Other Important Documents

• Social Security Number 
• Tax Identification Number 
• Bank Account Information 
• Estimated tax payment records. 
• Previous year’s tax return 

Choose your Preferred Filing Method 

There are many methods to choose from when you want to file your tax returns. Consider factors like your tax situation, the cost, your convenience, and preference, while ensuring accuracy and timeliness. 

• Paper Filing: This method involves taxpayers obtaining the appropriate forms and mailing them to the IRS or relevant state tax agencies. Taxpayers can get the forms from libraries, government agencies, or their local IRS offices. Additionally, taxpayers can include taxes owed in their mail. 
• Electronic Filing: Some taxpayers may prefer this method because it is convenient and provides many advantages. It involves using tax preparation software and authorized tax e-filers to file taxes. These electronic platforms help users and make the tax process seamless. 
• Professional Services: Taxpayers may find the process daunting and may require the services of professionals to file their taxes. Certified public accountants (CPAs) and other enrolled agents can help individuals and businesses with their taxes, ensuring they are compliant and accurate. 

Deductions and Credits 

Before filing your taxes, go through all your documents to see how you can take advantage of tax savings opportunities from your deductions and credits. This may lower your taxable income and increase your savings. Keep your records intact all year to see where you’re eligible. 

Some deductions like property taxes, mortgages, student loan interests, charity donations, etc. can reduce your tax payments. Also, credits like Child Tax Credit, Saver’s Credit, and Education Credits can increase your savings.

Procure Professional Services

Seeking the services of qualified tax professionals will save you so much time and stress, especially in cases of complicated financial situations. These professionals have the expertise and knowledge to offer strategic planning that will eliminate errors and increase tax savings processes. They will provide you with specific advice tailored to your unique circumstances and even offer representation in your dealings with the IRS. 

Conclusion 

The only way to succeed in this tax season is by understanding the intricacies of the tax process, preparing properly, and staying informed about the changing tax laws. 

By paying close attention to detail and following your checklist diligently, you will be able to file your tax return and enhance your potential returns. 

And if you need any help, you can always contact us at Okeh & Associates for professional help.