Wednesday, November 29, 2017

5 Tax Season Tips You Need To Know Before 2018

It’s never too early to start thinking about tax season.

There are many things to consider for a quick and seamless tax return this year. If you keep these 10 tips in mind, you will be less likely to experience a tax refund delay.


1. The First Day to File Taxes

There have been rumors about the first day to file taxes in 2018. According to some websites out there, the first day you can file taxes in 2018 will be January 21st. However, according to the IRS, an official date hasn’t yet been decided. It is likely to be the third week of January, based on past tax seasons. Be sure to always check the IRS website to see when the official date will be.


2. Check If Your ITIN Will Expire

An ITIN is an Individual Taxpayer Identification Number, which is a tax processing number for the IRS. On December 31st, 2017, any ITINs that haven’t been used for the last three years will expire. On top of those, according to the IRS, they will be expiring ITINs issued before 2013 and have middle digits 70, 71, 72 or 80. If your ITIN is due to expire, send an application to renew it before the end of the year. This will help ensure there won’t be a delay in your tax refund. Note: If you use a Social Security Number for filing taxes, this does not apply to you.



3. Start Gathering Your Documents

You’ll want to ensure you have all necessary documents for your tax return. This includes your previous tax return, W-2, 1099, and any other forms required for taxes. These typically come from your employer and banks in January. Once you receive them, double-check that all your information is correct. Use TurboTax’s preparation checklist to help know which documents you need.

4. EITC and ACTC Refunds Will be Held

For those filing with Earned Income Tax Credit or Additional Child Tax Credit, your refund will be held until late-February. This is required by law. Ensure you aware of this timing when filing these credits and making plans for your return.

5. Choose E-file and use Direct Deposit

Using these options during your tax return will help you get your refund fastest. The IRS states, “Electronically filing a tax return is the most accurate way to prepare and file. Errors delay refunds and the easiest way to avoid them is to e-file.” Along with e-file, direct deposit is the quickest way to receive your refund. It also saves taxpayer money if you choose direct deposit instead of a paper check.



Now that you have the top 5 tips for tax season, start preparing by gathering your documents and applying for a new ITIN before the end of the year. This will make it much easier for you and/or your accountant when it comes time to file your tax return.

For advice on what to do with the extra funds from your return, contact the specialists at Financial One Credit Union. We have partnered with Ameriprise Financial and can help you invest, pay off debts, plan for retirement and manage your money for the future.