Tax season will be here before you know it and it’s never too early to start preparations.
By following the simple tips below and learning about the updates implemented in 2024, you can make the process of filing taxes more manageable and stress-free. Before we begin, there are three big things you’re going to need to do:
before you start
Gather all of your relevant documentation, such as W-2s, 1099s, and receipts.
Use reputable tax software or preparer.
Stay organized and keep track of all filings and payments.
Now that we’re ready, let’s talk about your personal financial situation. Remember that regardless of your tax situation, you will need the following:
– Your total income for the year.
– Your total taxes paid for the year.
– The amount of taxes you would like to be refunded or how much you would like to owe.
what to do if you do not receive all of your W-2s
If you did not receive all of your W-2s, don’t panic. You can request a wage and income transcript from the IRS. This shows you all of your income that was reported to the IRS for the year. The transcript also includes any taxes that were withheld.
what to do if you changed jobs this year
In order to file your taxes correctly after changing jobs this year, there are additional things you’ll need to complete first.
Start by gathering all of your W-2s from your previous employers. Next, calculate your total income and taxes paid for the year. Then you will finally need to file an amended tax return using Form 1040X. Don’t forget you will need to list the years that you are amending at the top of the form.
When filing an amended return, make sure to include the following essential information:
- Your name.
- Social security number.
- Address.
- Employer Identification Number (EIN).
What to Do if You’re Self-Employed
To file your taxes correctly if you are self-employed, there are a few steps you need to take to prepare.
Begin by gathering all of your business-related receipts and expenses for the year. Then, calculate your total income and taxes paid for the year. Finally, you must file an amended tax return using Form 1040X. Don’t forget you will need to list the years that you are amending at the top of the form.
When filing an amended return, make sure to include the following essential information.
- Your name.
- Social security number.
- Address.
- Employer Identification Number (EIN).
what to do if you owe money to the IRS
If you currently owe money to the IRS, don’t worry! There are things you can do to help reduce the amount you will have to pay in taxes to make things less stressful.
You can establish a payment plan with the IRS that allows you to pay your taxes in installments over a period of time. You can also still claim all of your eligible deductions and credits. In addition to this, you could also consider selling some of your assets to generate cash.
what to do if you receive a large tax refund
Received a large tax refund this year? There are further actions you need to undertake to file your taxes correctly.
Start with gathering all of your documentation from the year. Then you will need to file an amended tax return using Form 1040X. Don’t forget you will need to list the years that you are amending at the top of the form.
When filing an amended return, make sure to include the following essential information.
- Your Name.
- Social Security Number.
- Address.
- Employer Identification Number (EIN).
Once you have filed your taxes, be sure it’s sent to the correct IRS address. It can take about 8-12 weeks for the IRS to process some documents so be patient. We advise you to send your return via registered mail for record-keeping purposes.
tax changes in 2024
Now that you know how to approach your taxes this year, you need to be aware of any changes.
It’s common for the IRS to make small changes to tax filing every year. We’ve made sure to stay in the loop and have outlined all the important changes below.
- Some of the key changes that taxpayers can expect for 2024 include the following:
- changes in tax brackets and standard deductions
- The IRS has changed its tax brackets for 2024. The new tax brackets are as follows:
- For married couples filing jointly, the standard deduction will rise to $27,700. A 7% bump from $25,900.
- For single taxpayers and married individuals filing separately, the standard deduction will rise to $13,850. A 6.9% bump from the previous rate of $12,950.
- Heads of households will see their standard deduction rise to $20,800. A 7.2% bump from the previous rate of $19,400.
- The standard deduction is used by people who don’t itemize their taxes, reducing the amount of income you must pay taxes on.
- increased limits for retirement contributions
- A positive change is that In 2024 contributions to 401(k)s have been increased.
- The IRS increased the annual 401(k) contribution limit from $20,500 to $22,500. Individuals with Roth and traditional IRAs have also received an increase of up to $6,500 annually, allowing them to contribute more.
make sure you’re prepared
It’s important to keep in mind that these are not all of the changes that will be taking effect in 2024. There are specific changes that affect only certain individuals and updates are continually implemented by the IRS.
Make sure you’re consulting your qualified tax professional to get accurate information tailored to your unique situation.
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