ST. CROIX INSIGHTS

5 Tips and Tricks for Filing Your 2023 Tax Return

BY BRETT ANDERSON/ST.CROIX ADVISORS, LLC
Latin American couple talking to a financial advisor about an investment - home finances concepts

As we approach the April 15 deadline for filing 2023 individual federal income tax returns, it’s essential to start preparing ahead of time. The IRS has provided some important reminders on steps you can take now to ensure a smooth filing process for your 2023 return.

Here are 5 tips from the IRS that I’d like to highlight for you:

  1. Utilize an IRS Online account: Take advantage of the IRS online platform available at www.irs.gov/account. This tool offers a range of helpful resources for the upcoming 2024 filing season, including access to key data from your latest filed tax return, account transcripts, electronic notices, and the ability to manage payment plans. This centralized hub can streamline your tax preparation process and keep you informed about your tax situation.
  2. Organize and update tax records: Maintaining organized tax records is crucial for accuracy and efficiency when preparing your tax return. Ensure you have gathered all necessary income documents, such as Forms W-2 and 1099-MISC, to avoid delays in processing and potentially uncover overlooked deductions or credits. This includes potential deductions for donation receipts and medical expenses, which can help reduce your taxable income. Remember, most income, including income from the gig economy and digital assets, is taxable and should be accounted for.
  3. Speed up refunds: Opt for direct deposit to receive your tax refund quickly and securely. Providing your bank’s routing and account information ensures a smooth process. Those opting for paper checks may encounter delays or issues such as non-receipt, so direct deposit is highly recommended to expedite your refund.
  4. Bookmark IRS.gov resources: Make IRS.gov your go-to resource for tax-related information and tools. The website offers user-friendly online tools available 24/7 to assist with filing and paying taxes, tracking refunds, and accessing account information. Bookmarking this site will provide easy access to valuable resources throughout the tax season.
  5. Consider consulting a tax professional: Tax professionals, including CPAs, enrolled agents, and attorneys, can provide invaluable assistance in navigating the tax system and ensuring compliance with tax laws. Choosing a reputable preparer who is skilled in tax preparation can help minimize errors and maximize tax benefits. Be sure to follow IRS guidelines for selecting a tax professional to avoid potential pitfalls.

Lastly, keep in mind that you can request an automatic six-month filing extension until October 15, 2024, by submitting Form 4868 if needed. However, remember that this extension applies only to filing and not to paying taxes. It’s important to make a good-faith estimate of your tax liability and pay any expected taxes by the April 15 deadline.

As your trusted financial advisor, I’m here to support you through the tax filing process and ensure you make informed decisions that align with your financial goals. Please don’t hesitate to reach out if you have any questions or need assistance along the way.

 

As we approach the April 15 deadline for filing 2023 individual federal income tax returns, it’s essential to start preparing ahead of time. The IRS has provided some important reminders on steps you can take now to ensure a smooth filing process for your 2023 return.

Here are 5 tips from the IRS that I’d like to highlight for you:

  1. Utilize an IRS Online account: Take advantage of the IRS online platform available at www.irs.gov/account. This tool offers a range of helpful resources for the upcoming 2024 filing season, including access to key data from your latest filed tax return, account transcripts, electronic notices, and the ability to manage payment plans. This centralized hub can streamline your tax preparation process and keep you informed about your tax situation.
  2. Organize and update tax records: Maintaining organized tax records is crucial for accuracy and efficiency when preparing your tax return. Ensure you have gathered all necessary income documents, such as Forms W-2 and 1099-MISC, to avoid delays in processing and potentially uncover overlooked deductions or credits. This includes potential deductions for donation receipts and medical expenses, which can help reduce your taxable income. Remember, most income, including income from the gig economy and digital assets, is taxable and should be accounted for.
  3. Speed up refunds: Opt for direct deposit to receive your tax refund quickly and securely. Providing your bank’s routing and account information ensures a smooth process. Those opting for paper checks may encounter delays or issues such as non-receipt, so direct deposit is highly recommended to expedite your refund.
  4. Bookmark IRS.gov resources: Make IRS.gov your go-to resource for tax-related information and tools. The website offers user-friendly online tools available 24/7 to assist with filing and paying taxes, tracking refunds, and accessing account information. Bookmarking this site will provide easy access to valuable resources throughout the tax season.
  5. Consider consulting a tax professional: Tax professionals, including CPAs, enrolled agents, and attorneys, can provide invaluable assistance in navigating the tax system and ensuring compliance with tax laws. Choosing a reputable preparer who is skilled in tax preparation can help minimize errors and maximize tax benefits. Be sure to follow IRS guidelines for selecting a tax professional to avoid potential pitfalls.

Lastly, keep in mind that you can request an automatic six-month filing extension until October 15, 2024, by submitting Form 4868 if needed. However, remember that this extension applies only to filing and not to paying taxes. It’s important to make a good-faith estimate of your tax liability and pay any expected taxes by the April 15 deadline.

As your trusted financial advisor, I’m here to support you through the tax filing process and ensure you make informed decisions that align with your financial goals. Please don’t hesitate to reach out if you have any questions or need assistance along the way.