Preparing for Tax Season Made Easy
Tax season can feel overwhelming. However, the right information can make the process much easier and less stressful.
The Internal Revenue Service (IRS) will begin accepting and processing 2023 tax returns on Monday, January 29. Before that date, taxpayers can take steps to prepare. The IRS opened its Free File portal on January 12 for eligible taxpayers.
IRS Free File is available to individuals who earned $79,000 or less in 2023. Those who do not qualify can start filing once the IRS officially opens the season on January 29. This year, the federal tax deadline is April 15.
To help taxpayers prepare, The U.S. Sun spoke with tax expert Jennifer Berger, a professional tax preparer with over ten years of experience. She shared practical advice to ensure a smooth filing process.
Helpful Online Tax Resources
Berger recommends using trusted online tools to simplify tax filing. She encourages taxpayers to explore IRS.gov, which offers updated guidance and official IRS announcements.
She also highlights the Interactive Tax Assistant on the IRS website. This tool answers common tax questions and helps users understand complex tax topics. It proves especially useful for taxpayers unfamiliar with specific tax rules.
While many free and low-cost filing options exist online, Berger notes that some situations call for professional help.
“If you want to save money on taxes, understand how decisions affect your tax liability, and feel confident your return is accurate, I strongly recommend working with a reputable tax preparer,” Berger said.
Common Tax Filing Mistakes That Trigger Audits
Berger identifies several common errors that increase the risk of an IRS audit. She outlines five key mistakes taxpayers should avoid.
1. Missing Required Tax Forms
Taxpayers must include all W-2s and other income forms when filing. Do not rely on pay stubs unless you file a paper return after February 28 with a substitute W-2.
2. Choosing the Wrong Filing Status
Married taxpayers must file as Married Filing Jointly or Married Filing Separately. Filing as Head of Household is illegal if you lived with your spouse during the last six months of the year.
You may only claim Head of Household status if:
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You did not live with your spouse during the last six months
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You claim eligible dependents
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You paid more than half the household expenses
Berger notes an increase in audits related to filing status errors.
3. Claiming Ineligible Dependents
Only certain relatives qualify for child-related credits. Eligible dependents include biological children, stepchildren, siblings, nieces, nephews, or grandchildren.
4. Reporting Fake Business Income
Some taxpayers falsely claim businesses or expenses to reduce taxes. Berger warns that the IRS now hires more agents to verify claims related to cash businesses and tax credits.
5. Excessive Itemized Deductions
Large or unusual deductions often raise red flags. Common examples include medical expenses, real estate taxes, charitable donations, and gambling losses.
Smart Tax Planning Throughout the Year
Berger stresses the importance of proactive tax planning. She advises W-2 employees to review their W-4 forms regularly.
Life changes can affect tax withholding. These changes include income increases, second jobs, dependents, or marital status updates. Taxpayers should report these changes to their employers promptly.
She also warns against claiming exempt status on a W-4. Doing so can lead to unpaid taxes, penalties, wage garnishments, or property levies.
Berger recommends using tax-deferred accounts, such as 401(k) plans. These programs can reduce taxes owed or increase refunds significantly. Business owners should also separate personal and business expenses and keep all receipts.