Happy New Year!
I don't know about you, but 2024 has a prosperous feel to it. I'm feeling more optimistic (cautiously, of course) at the beginning of this year than I have in the last couple of years. January is a fun month for us, as we're preparing for tax filing season. We're just about ready to kick things off, and I wanted to provide a few pointers to help get you organized this year. Whether you self-prepare your tax returns or work with a tax professional, these tips are helpful for all.
1. Consider creating an online account at IRS.GOV
The IRS has been working hard to improve its taxpayer experience, and creating the Online Account System for Individuals, Businesses, and Tax Professionals has been one of their top improvements.
By creating an Online Account at IRS.GOV, you will have access to the following and more:
- All previously filed tax returns under your Social Security Number
- View any notices and letters from the IRS
- Make Payments to the IRS
- View your account status if you have a balance due to the IRS
Learn more about Your Online Account here.
2. Review your Previous Year's Tax Return
- Navigate through your tax return to see what items you should expect for 2023. Use our 1040 Document Checklist to keep track of what documents you should expect for 2023.
- Look for any carryover items from 2022 that you want to make sure are included on your tax return in 2023.
- some examples include carryover losses and carryover 529 plan contributions at the state level.
- Look for any mistakes - they happen! And you may be eligible for an amendment.
3. Create a Designated Folder for Tax Documents
- Have a manila folder at home for any paper tax documents you receive in the mail
- Create a "Tax Year 2023" Folder on your computer
- Download any tax forms you receive electronically and save them directly into this folder
- Scan and save your paper copy tax documents into this folder as well
- Create a Word document or have a notepad to start tracking items. Here are some examples:
- Include any notes on tax-related events that happened during the year
- List out dates and dollar amounts for any estimated tax payments
4. Make sure you've paid enough in taxes
You might think there is nothing worse than owing the IRS or your State Department of Revenue when you file your taxes. But actually, interest and penalties are worse, especially in a year when interest rates are higher than they have been for a long time. Do a little bit of planning to see if you need to pay a little more now to help reduce any unnecessary underpayment penalties or interest. And as a reminder, if you pay quarterly estimated tax payments, your final payment for 2023 is due January 16, 2024.
Best Practices for Clients Working With Resilient Wealth Planning
1. Register and access our Secure Client Portal via TaxDome.
3. Sign up for an Online Account @ IRS.gov.
4. Add us as a contact to your email so you're not missing any of our email blasts.
5. Start getting organized now! Use our 1040 Checklist to get things started
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