February 14, 2024

With just a few months left before the tax filing deadline, the Internal Revenue Service (IRS) issued reminders and checklists to help taxpayers when preparing their 2023 tax returns.  

Among those that stand out are the following reminders:  

Report all types of income on the tax return.  

The IRS reminds taxpayers to report income from all sources to avoid receiving IRS notice or bill. They highlighted the following types of income that should be included in the return: 

  • Goods created and sold on online platforms. 
  • Investment income. 
  • Part-time or seasonal work. 
  • Self-employment or other business activities. 
  • Services provided through mobile apps. 

The reminder can be interpreted as a cautionary warning to those in the gig economy such as independent contractors and freelancers to report all their earned income as the IRS’ list focuses on the income from self-employment, side income, and seasonal works. 

Remember that taxpayers must include all reportable income on their returns including tips and other income that may not actually cause you to owe taxes yet but is required to be reported. 

Gather tax documents and records for accuracy to avoid missing a deduction or credit. 

Completing all the necessary documents and information will help taxpayers file an accurate return. This will not only facilitate the tax preparation process, but more importantly it can avoid errors and omissions that can cause a missed deduction or credit.  

The IRS made a checklist of what filers should have before preparing a tax return. 

  • Social Security numbers for everyone listed on the tax return. 
  • Bank account and routing numbers. 
  • Various tax forms such as W-2s, 1099s, 1098s and other income documents or records of digital asset transactions. 
  • Form 1095-A, Health Insurance Marketplace statement. 
  • Any IRS letters citing an amount received for a certain tax deduction or credit. 

Filing electronically with direct deposit is still the fastest way to receive a refund. 

Tax software helps avoid mistakes by guiding filers through each section with a question-and-answer format. Electronically filing your return and having the IRS deposit your tax refund for free via direct deposit is the fastest way to receive your tax refund. 

IRS Tip: For those waiting for their 2022 tax return to be processed, make sure to enter $0 (zero dollars) for last year’s adjusted gross income (AGI) on the 2023 tax return to ensure that your 2023 tax return is accepted by the IRS for processing. Everyone else should enter their prior year’s AGI from last year’s return. 

Choose tax professional carefully. 

The IRS reminds taxpayers to be keen when choosing a tax professional. They warn the public of dishonest tax return preparers who will file false income tax returns. Some taxpayers are financially burdened every year simply because they chose the wrong tax preparers.  

Remember that all the information on the income tax return is the taxpayer’s responsibility regardless of who prepared it. 

Find a tax professional that you can trust with your most personal information. At 1099 Accountant, we are highly knowledgeable in tax laws, with vast experiences in different niche markets, and we provide personalized tax strategies and plans for our clients that add value to their overall financial health. 

 Want to learn more? 

You may want to consult and work with 1099 Accountant – We offer online bookkeeping, online advisory services and online tax and accounting services. We offer reasonable rates. We only work with independent contractors, freelancers, and one-person business. We work with locum tenens from California to New York City and everywhere in between. Yes, even Hawaii! 

Contact us toll-free (855)529-1099 or make an appointment for a free consultation. Contact Us


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