The tax season is just about here and that means it?s already past time to start getting ready to file your return. With that in mind, here are some tried and true tips that you can use to help you get prepared.
First off, start gathering all the important documents you will need to file your taxes. That includes W-2 Forms, 1099 Forms, and any other tax forms you receive. It?s also a good idea to gather pay stubs, receipts, bank statements, and any other paperwork that you will use to file your return. It?s never a bad idea to have a copy of the previous year?s return, as well.
If you have an Individual Taxpayer Identification Number (ITIN) it might also be time to renew it. According to the IRS, any ITIN not used on a tax return in the past three years will expire on Dec. 31, 2017. Similarly, any ITIN with middle digits 70, 71, 72 or 80 will also expire at the end of the year. Anyone with an expiring ITIN who plans to file a return in 2018 will need to renew it using Form W-7.
This is an important step because if it?s not renewed, your refund could be delayed and you could lose important tax benefits.
Here is another thing to be aware of. The IRS cannot issue refunds for any taxpayers that claim the Additional Child tax Credit or Earned Income Credit before mid-February. So even if they file early, these individuals will not see their refund until around February 27, at the earliest.
Lastly, the IRS recommends using e-file in order to get your refund quicker and to use direct deposit as the safest way to receive your refund.
For more IRS tips, click here.
The post Are You Ready for the 2018 Tax Filing Season? first appeared on Advisors to the Ultra-Affluent – Groco.
