The Internal Revenue Service (IRS) highly advises planning for the upcoming tax season throughout the year rather than filing in a haste. This allows you to file a more accurate tax return and, if eligible, receive your tax refund without delays caused by typos and inaccuracies.
First and foremost, the IRS recommends opening an account. Once you have an Internal Revenue Service account, you will have access to all tax-related information you may require.
This is especially crucial if you are between the ages of 18 and 24, and you have never filed a tax return since you were not required to do so. This online account allows you to request an IP PIN, access notices, prior return details, and much more.
IRS recommends gathering tax records
Keep a waterproof box and a folder for all tax records you receive throughout the year. This way, you’ll have all of your tax records arranged when the 2025 tax season begins.
Having all of your documentation available may also make it easier to determine whether you are eligible for any tax credits or deductions. Don’t file your 2024 tax return until:
- You have Forms W-2 ready (get them from your employer).
- Forms 1099 from banks or agencies (e.g. dividends, pension, annuity, retirement plan distributions, or unemployment compensation).
- IRS or agency letters
- CP01A Notice
- Form 1095-A
- Digital asset transaction documents
- Form 1099-K, 1099-MISC, W-2 or other income statement if you belong to the gig economy
IRS insists on checking ITIN
Has your ITIN expired? Should you renew it or obtain a new one? Keep in mind that if your ITIN has expired, the IRS can still accept your tax return; however, it will take longer to complete, so your tax refund may take longer, keeping you waiting for your check.
For example, if you have claimed the Child Tax Credit or the American Opportunity Tax Credit, you may not want to wait any longer. Other considerations include tax withholding.
Paying adequate but not excessive taxes will be critical to get a reasonable amount. If you received a large refund or had to pay a lot, you may need to utilize the IRS Interactive Tax Assistant to alter your withholding. Last but not least, become banked to expedite tax refund payments via direct deposits.
Also See:- Future of the child tax credit: changes can we expect from the Trump administration