By Healthy Humans Hendry-Glades
With April upon us, so is one of life’s uncertainties - tax season.
While not exactly a season of celebration, filing your federal taxes with the IRS doesn’t have to be overwhelming. Whether you’re a seasoned filer or a first-timer, having the right information at your fingertips can make the process much smoother. Here are some key tips to help you confidently breeze through tax season.
Determine if You Need to File Taxes
That answer depends on several factors, including your income, filing status, age and whether anyone can claim you as a dependent. However, even if you’re not required to file, it may still be worth considering, especially if you qualify for assistance such as the Earned Income Tax Credit or the Child Tax Credit.
Even if you don’t owe taxes, you could still receive a refund. Use the IRS EITC Assistant Tool to check your eligibility
Keep Your Eye on Tax Deadlines
Knowing when taxes are due is critical to avoiding penalties. Most individuals must file their 2024 tax returns by April 15, 2025. If you need more time, you can request an extension, but keep in mind that the extension only gives you more time to file – your tax payment, if any, is still due on April 15.
Also, while it may be too late this year, filing early to avoid delays or potential fraud is a smart move. The IRS started accepting returns on January 27, and filing early can help protect your refund from identity theft – it’s harder for someone to steal your refund if you file first.
Know How Your Taxes are Calculated
Understanding how the IRS calculates your tax liability can help alleviate confusion. Taxes in the U.S. are progressive, meaning higher income is taxed at higher rates. But don’t worry, just because you may be in a higher tax bracket doesn’t mean you pay that rate on your entire income. Instead, your income is divided into chunks, each taxed at different rates.
Decide How to File Your Taxes
There are three main ways to file your taxes:
- Use Tax Software: Many online tax services guide you through the filing process, asking questions based on your situation. Based on the complexity of the return, there may be a fee.
- Hire a Tax Professional: If your taxes are complicated or if you want added security, working with a tax preparer or accountant can save you time and stress.
There are also several options for receiving a refund, if you are due. The fastest method is direct deposit, where the IRS transfers your refund directly into your bank account. If you do not select a direct deposit, the IRS will mail you a refund check, which may take longer.
You can track the status of your refund online through the IRS “Where’s My Refund?” tool. Typically, if you file electronically and request direct deposit, you can expect your refund in about three weeks. However, if you mailed your tax return, it may take longer to process. Also, if your return requires any corrections, it could delay your refund, so it’s important to file accurately.
Gather the Right Documents
Regardless of whether you file yourself or hire a tax professional, you’ll need to collect various documents beforehand. See the checklist below:
- Social Security numbers for yourself, spouse and any dependents
- W-2 forms from your employer(s)
- 1099 forms for any other income
- Proof of retirement account contributions, property taxes, mortgage interest and charitable donations
- Last year’s federal and state returns, if applicable
- 1095A form if you received health insurance from the Health Insurance Marketplace
What if You Owe?
If you owe money, there are multiple ways to pay, including credit card, electronic payments or cash. If you’re unable to pay in full, you might qualify for an IRS payment plan, allowing you to pay over time.
Filing for FREE with United Way’s VITA Program
If your household income is less than $66,000 annually, you may qualify for the United Way Volunteer Income Tax Assistance (VITA) program, which offers free tax filing services. Through the United Way of Lee, Hendry and Glades, VITA is available at over 30 locations throughout Southwest Florida, including in Clewiston, LaBelle and Moore Haven, and each return is skillfully prepared by IRS-certified volunteers who are trained to identify all eligible credits, including the Earned Income Tax Credit and Child Tax Credit.
This program is designed to help individuals and families in our community keep more of their hard-earned money, and each return is carefully reviewed to ensure accuracy. For more details, visit the United Way VITA program or call 239.433.3900.
Tax season doesn’t have to be stressful. With the right preparation and resources, you can approach it with confidence and peace of mind.
