It is THAT time of year ....

 Many of us don't want to talk about this BUT it's ... 

TAX FILING SEASON IS COMING!

I know, I know, this is NOT what you wanted to be thinking about BUT you need to start thinking about taxes now, so that you can maximize your potential refund or decrease your potential balance due to the IRS and/or State Government.  Start by making a list of all of your income and expenses you expect, based on your 2020 tax return.

PROTECT YOUR DATA

Do not be fooled by misleading websites or emails.  Any email from the IRS that includes a website will ONLY end in “.GOV”.  They will never send out an email with a URL that ends in “.COM” or “.NET” or even “.ORG”.

The IRS will also NOT call you directly without first sending a letter and setting up an appointment to talk.  They will NOT require you to make a payment via virtual currency or gift cards.  Nor will they appear at your door requiring payment in cash.  If it feels wrong, it probably is.

SECURE AN ONLINE INDIVIDUAL TAX ACCOUNT

You can Create or Access an already created account at HTTPS://WWW.IRS.GOV/ACCOUNT

Once you have created your account, you will be able to see if there are any tax balances, view any payment plans that have been set up, or make online payments.

You will also be able to see what stimulus payments, advanced payments from Child Tax Credits you have received.  Many of the notices received last filing season related to payments received that were not reflected on the tax returns, and ended up reducing the refunds expected.

UPDATE YOUR RECORDS.

Did you move last year after you filed your 2020 tax return?  To be sure that the IRS will be sending all correspondence to the correct address, you should file Form 8822, Change of Address to update your address with the IRS. 

Did you get married or divorced during 2021?  Make sure that you update your records with the Social Security Administration so as to not delay the processing of your tax return.

THINK ABOUT LIFE EVENTS THAT HAVE OCCURRED

Did you get married?  Did you get divorced?  Did you have a baby?  Did you or a dependent start college?  Did you buy a house?  Did you sell a house? Did you lose a job?  Was there a death in your immediate family? 

All of these things and many more could have an effect on your tax return this year.  Make sure you take these things into account when putting your tax information together so that you don’t miss out on some credits that could increase your refunds this year.

UNEMPLOYMENT COMPENSATION

Many people have been receiving Unemployment Compensation due to loss of jobs.  Most if not all States, due to COVID restriction, required you to file online.  You will need to go online to get the 1099G form that will detail what unemployment you have received and any tax withheld from the compensation.  Make sure you put this on the list required documents you need to gather.

Direct Deposit of YOUR Refund!

I know that many people have resisted having their refund directly deposited to a bank account.  But I am urging you to think about this so that your refund will arrive quicker for your use, since you are not waiting for the "extra steps" of check printing, envelope stuffing, and then the actual mailing.  And I believe it will be safer since you are not dependent on the mail, since many envelops have gotten "lost in the mail" or "stolen" or just majorly delayed.  I know I have had mail take weeks to just go to the next town...yes I should have just taken it to the company - it would have been faster.

And your tax refund is the same ... so just think about it.  Besides, wouldn't you want to have your money back sooner rather than later?  I know I would.