Happy Groundhog Day!
It’s here – tax season opened on January 27th for individual filers in the United States. Here is information about what to know before you file to get you in the “mood”!
The IRS has created a page called Get Ready to File Your Taxes reminding us that tax planning is for everyone. Planning ahead can help you file an accurate return and avoid delays that can slow your tax refund.
Image by Markus Winkler from Pixabay
What’s new and what to consider the next time you file
Taxpayers may receive a Form 1099-K
Changes that may affect your tax refund
Avoid refund delays and understand refund timing
CNBC.com put together what to know before you file information to help prepare you for filing this year. The IRS expects more than 140 million individual tax returns for tax year 2024 to be filed ahead of the April 15 federal deadline.
Many taxpayers qualify for free filing options
If you’re eager to file your taxes for free, there are several options for your 2024 filing, according to financial experts.
This season, more than 30 million taxpayers may be eligible for Direct File, the IRS’ free tax filing program, according to the U.S. Department of the Treasury.
Direct File has expanded to 25 states and “will cover more tax situations than last year,” former IRS Commissioner Danny Werfel told reporters during a press call in early January. Another option, IRS Free File, offers free guided tax prep software if your adjusted gross income, or AGI, was $84,000 or less in 2024.
An estimated 70% of taxpayers qualify for IRS Free File, but only a fraction of eligible filers use it, according to Tim Hugo, executive director of the Free File Alliance.
Many filers also qualify for more guidance via Volunteer Income Tax Assistance, or VITA, a free IRS-run program. You’re generally eligible with an AGI of $67,000 or less.
Tax relief for natural disaster victims
While the federal tax deadline is April 15 for most filers, some tax filers, including California wildfire victims, have extensions to file returns and pay taxes owed. The IRS provides a detailed breakdown of IRS tax relief by date.
Congress in December also extended tax relief for certain victims affected by federally declared natural disasters from 2020 to early 2025. As a result, some filers could qualify for a bigger tax break for losses. Missing forms could delay your return
While it may be tempting to file your return quickly, it is important to gather the necessary tax forms first, according to certified public accountant Brian Long, senior tax advisor at Wealth Enhancement in Minneapolis. Otherwise, the IRS systems could flag your return for missing or inaccurate information, which could delay processing.
However, you can use your “prior-year tax return as a checklist” for accuracy, Long added. While many tax forms arrive in January, others may come between mid-February and March or later, experts say.
Support
The situations in LA and DC have been a difficult start to 2025 for many. I encourage you to support each other during these tough times.
Support can be shown in many ways, including emotional support, practical assistance, and encouragement. Count me in, for practical support and lots of encouragement. I know situations are different and that’s one area where my experience is strong.
If it’s your time to confer, I’m here should you want to discuss your situation. Send me an Email or Message if you have any questions. For additional information about my work check out @ The Living Planner or @ The Living Planner.
If you’re up for planning your life’s administrative side, my book is a resource. The Living Planner What to Prepare Now While You Are Living © Check it out HERE.
Quote for the week, We rise by lifting others: A famous quote by Robert Ingersoll says it all for me this week.
We’re in this together❣️ Lynn
#PlanfortheUnplanned #Can’tPredictCanPrepare