During this time of the year, a lot of us take a moment to look back on the challenges, achievements, and lessons that the past twelve months have brought us. Reflecting on our experiences can give valuable insights for us to be wiser and prepare for the new challenges to come.
The end of the year also marks the time to gear up and be ready for the upcoming tax season. It is best to create a tax plan to avoid filing inaccuracies or delays in your tax refund.
Luckily, the Internal Revenue Service (IRS) has outlined the following steps for a smoother tax filing in 2024.
Create or Access Your IRS Online Account
With an IRS Online Account, taxpayers can access their records such as taxes owed, recently filed tax return, adjusted gross income, and transcripts. You can also make payments, apply for payment plans, and view your tax payment history.
IRS has also made a recent enhancement to the portal allowing taxpayers to view, approve, and electronically sign power of attorney authorizations from their tax professional.
Gather, Organize, and Update Tax Records
One can never go wrong with an organized tax record. The IRS urges taxpayers to maintain a record-keeping system to facilitate preparation of return, avoid delays in processing refunds, and help find overlooked deductions or credits.
Before filing your tax return, ensure that all necessary tax records are complete, such as Forms W-2, 1099 information forms, and other income documents.
Also, you must ensure that your personal records are updated. Inform the IRS for changes in address and inform Social Security Administration for changes in your legal name.
Catch the Last Quarterly Tax Payment for 2023
The 4th and last quarterly payment for estimated taxes is due January 16, 2024.
The self-employed and small business owners are required to make estimated tax payments since they have no employers to withhold taxes for them. The estimated tax payments are in accordance with the government’s pay-as-you-go system for taxes, meaning taxes should be paid when income is earned or received.
If you are a W2 employee, make sure that your withheld taxes will be enough to cover your tax liability and if you think you will fall short from what you will owe or you received other income that were not subject to withholding tax, consider making additional tax payment and catch the last quarterly tax deadline for estimated taxes to avoid underpayment penalties and interests.
Furthermore, you must remember that certain life changes or events can affect your tax liabilities such as getting married or divorce, welcoming a child, transitioning to being self-employed, starting your own business, or accepting side works.
Fortunately, the IRS provided the Tax Withholding Estimator as a tool to help taxpayers estimate their tax liability. But, if you are still unsure with your tax figures, it is better to consider hiring a Tax professional.
Get Faster Tax Refunds using Direct Deposit
The fastest way to receive your tax refund is to electronically file your return and have the IRS deposit your tax refund for free via Direct Deposit. It is a faster and safer way to receive tax refunds than using paper checks. It is secure, easy to use, contactless, and it eliminates the chances of paper checks being uncashed, stolen, misplaced, or destroyed.
Understand Refund Timing
The IRS advises taxpayers to not rely on a certain date for tax refunds, especially when making major purchases or paying bills to avoid disruption of one’s cash flow.
Although the IRS can issue more than 90% of the refunds in less than 21 days, there are several factors that can affect the timing of your tax refunds such as your method of filing, the complexity of one’s return, incorrect account information, unpaid taxes, or child support.
Choose the Right Tax Professional
Tax season can be overwhelming and if you choose the wrong tax preparer, it can hurt you financially every tax year. But with 1099 Accountant by your side, the process can be smoother and more rewarding.
We are highly experienced, skilled, and knowledgeable when it comes to filing income tax returns, ensuring compliance, avoiding penalties, and maximizing tax savings for you.
Prioritize finding someone who aligns with your specific tax situation and needs. Remember that we, at 1099 Accountant, are not only there to ease the tax season but also to provide recommendations and strategic plans that can add value to your 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
