5 Tips To Follow Before Filing Your Tax Return
(CBS4) - Tax season is already here, and the Internal Revenue Service says the best way to get your refund quickly is to file early. The agency has these five tried-and-true tips to make sure your return is processed smoothly.
The first recommendation is to use e-file and direct deposit. Electronic filing helps avoid mistakes and direct deposit allows you to get your refund faster.
"You don't have to mail anything in, and nobody has to process it on our end. It simply goes from your computer onto ours, so it's much quicker," said Karen Connelly from the IRS. "We also recommend that people choose direct deposit for any refund that they might be getting as well. The same thing applies: no waiting for a check in the mail."
The second tip is to make sure you have all the necessary documents before preparing your tax return. Something else to remember is that this year you'll want to make sure your Child Tax Credit and stimulus payment information is accurate.
"These two letters basically outline what taxpayers already received. And that's really important when they go to file their taxes to make sure that that information is correct."
Tip #3 is helpful to anyone waiting on a 2020 tax return to be processed. Taxpayers who are waiting can enter $0 for last year's Adjusted Gross Income (AGI) on their 2021 tax return. Anyone who used a non-filer tool to register for an advance third Economic Impact Payment or Child Tax Credit should enter $1. Everyone else should put their prior year's AGI from last year's return. Most tax preparation software will auto-fill this field for you.
The other big recommendation from the IRS: don't call them unless necessary. The agency is dealing with big backlogs due to the pandemic. To avoid any delay, check IRS.gov to see if you can find the answer to your question online. The IRS has plenty of online tools that allow you to check your refund status, pay your taxes, or even get answers to tax questions.
Finally, don't forget you may also be eligible for IRS Free File, which is an option for those who have earned $73,000 or less in 2021. There are eight Free File programs available in both English and Spanish that can help you prepare your taxes.
