Tick-tock, tick-tock… A new tax filing season is upon us, fear not, it’s just another one! We’re entering 2025 and with it, as you know, the deadline for filing your tax documents is open until April 15th. The Internal Revenue Service (IRS) is advising taxpayers to start taking action now before last-minute stress sets in. So, while we still have time, let’s get organized to make everything much easier, thus ensuring that your refund is faster too! Let’s get started!
Why start now when it’s only January?
As the saying goes… “an ounce of prevention is worth a pound of cure”, so now imagine that the deadline is approaching and you just realize that you are missing data, or documents, you don’t know how much you have to pay, or worse, you realize that someone has filed a return using your information. What a nightmare, right?! So, it’s better to start now and go little by little completing all the information they ask for. Plus, the sooner you file, the sooner your tax refunds will arrive this year too!
Where do I start?
The IRS has created a section (which you can access by clicking here) in which they give you practical tips to help you in your task as a taxpayer. One of the first things you can do is create an IRS online account, since you can access many IRS services without even getting up from the couch! So, this will be one of the first steps you can take to simplify your process.
What can I do with one of these accounts?
- Review your most recent return so that everything is in order
- Obtain transcripts of your income and wages (useful if you need information from previous years)
- Request an Identity Protection PIN (IP PIN).
- Pay taxes directly from your account (or set up payments if you have outstanding debts)
- And best of all: you will receive electronic notifications, which means that you will not have to wait for a letter from the IRS to find out something important!
What is an IP PIN and why do you need it?
This number, the IP PIN, is a six-digit code that serves to protect your tax return (even more).
If you don’t have your IP PIN yet, you can register online through your IRS account, although you can also do it in person at any office.
What’s new this year?
Yes, the IRS will now accept Forms 1040, 1040-NR, and 1040-SS, even if the dependent is already listed on another previously filed return. The key to this is to make sure you include a valid IP PIN. This will streamline the process for duplicate returns.
Any other advice?
Don’t leave everything to the last minute… You can start by gathering your W-2 forms, 1099 forms, proof of expenses that may be deductible, or any documents related to income and investments. Having everything you need on hand from the beginning of the process will make everything go much faster!
Don’t lose track of IRS notifications, you know that they tend to change every so often and it’s crucial to stay informed.
Finally, ask for help if you think the process is complex or you have questions, there are many tax advisors or software prepared to make everything much easier for you, and, although it may be an investment, we assure you that it will be worth it!
So, with everything you already know, tax season is less scary, don’t let anything catch you by surprise and start getting organized now!