With tax season only a few months away, it is crucial to make sure you are ready to process your tax returns in the spring. These following tips will help you to prepare for the upcoming tax season!
Collect Relevant Documents and Forms
Our first suggestion would be to gather all relevant documents. These forms include W-2 from employers, 1099 from banks and other payers, and forms 1095-A from those claiming the Premium Tax Credit. This is an important step to take to give yourself ample time to contact the payer to correct any possible errors. It is also important to keep a copy of your previous year’s tax return and supporting documents, as it will help in completing the following year’s tax returns.
Renew Expiring Individual Tax Payer Identification Number
If you have an Individual Tax Payer Identification Number (ITIN), you may have to renew it before the end of the year. If an ITIN has not been used on a tax return in the past three years or if it has middle digits 70, 71, 72 or 80 it will expire on December 31, 2017. It is important to look into this early on to avoid any delays. Additionally, taxpayers who fail to renew an ITIN may be ineligible for certain tax credits.
Go With an e-file Option For a Faster Refund
Electronically filling a tax return is the most efficient way to go because it will help catch any errors, and as a result, you will be able to avoid any refund delays. Some e-file options include: IRS Free File, Volunteer Income Tax Assistance and Tax Counseling for the Elderly Programs, Commercial tax preparation software, or tax professional.
Use Direct Deposit
The fastest way to receive your refund is with direct deposit because it will go directly into your bank account. Direct deposit ensures that you do not have to worry about your refund check getting lost or stolen.