Tax Season Resources and Tips for IAM Members

Tax season can be scary for many. Papers pile up, forms look confusing, and the fear of missing something important adds to the stress. With a little planning and organization, you can turn this season from a headache to a breeze.

Gather Your Documents:

The key to a stress-free filing experience is having all your stuff in order. Start by collecting important papers like:

• W-2s: These forms contain your yearly earnings and any taxes taken out. You can usually obtain them from your employer by the end of January.
• 1099s: These forms report income from things like freelance work, investments, or interest payments.
• Receipts: Keep any receipts for things you can deduct, like donations, medical bills, or work-related expenses.
• Other papers: Depending on your situation, you might need things like retirement plan statements, mortgage papers, or proof of childcare costs.

Know Your ‘Deductions’ and ‘Credits’:

Taxes aren’t just about what you owe. You can also claim things to lower how much you owe.

• Deductions: These lower your taxable income, meaning you’ll owe less in taxes. Think of it like subtracting expenses from your overall income. Common deductions include mortgage interest, charitable donations, state and local taxes paid, and some medical expenses.
• Credits: These act like dollar-for-dollar reductions on your tax bill. Imagine getting money back directly! Common credits include the Earned Income Tax Credit (EITC), child tax credits, and the retirement savings credit.

Choose How You Want to File:

There are three main ways to file your taxes:

• Do it yourself. Websites and apps make filing on your own easier, but you’ll need some tax knowledge and comfort with the program.
• Use a tax preparer. They handle everything for you, offering guidance and making sure it’s accurate. This can be helpful for complicated situations or if you want expert advice.
• Use IRS Free File. The IRS offers free online filing for people and families with lower incomes. This is a great option if you qualify and want to DIY with some extra support.

Embrace Online Options:

Technology can make filing your taxes a breeze! Consider using:

• Tax software. These programs guide you through filing, do the math for you, and even let you file electronically.
• IRS website. They offer forms, instructions, and tools to answer your tax questions.
• Tax apps. These apps can help you track expenses, take pictures of receipts, and access tax info on the go.

File Electronically and Early:

Filing electronically is faster, safer, and allows the IRS to process your return quicker. It also reduces the chance of mistakes compared to paper filing. Filing early gives you more time to gather documents, fix any issues, and avoid last-minute rushes. The deadline to file federal taxes is usually April 15th, but filing early is recommended to avoid delays or penalties

Things to Remember:

• Stay updated on any tax law changes as they can impact your filing.
• Keep copies of your tax documents for at least three years after filing.
• Pay any taxes owed by the deadline to avoid penalties and interest charges.

The information provided in this article is for general informational purposes only and should not be construed as tax advice. Please consult with a qualified tax professional for personalized guidance.