Things to remember when filing 2023 tax returns

These three easy tips will help make tax preparation smoother in 2024.

1. Gather all necessary tax paperwork and records for accuracy to avoid missing a deduction or credit. Taxpayers should have all their important and necessary documents before preparing their return. This will help file a complete and accurate tax return. Errors and omissions slow down tax processing, including refund times.

Before beginning, taxpayers should have:

• Social Security numbers for everyone listed on the tax return.

• Bank account and routing numbers.

• Various tax forms such as W-2s, 1099s, 1098s, and other income documents or records of digital asset transactions.

• Form 1095-A, Health Insurance Marketplace statement.

• Any IRS letters citing an amount received for a certain tax deduction or credit.

2. Remember to report all types of income on the tax return. This is important to avoid receiving a notice or a bill from the IRS. Don’t forget to include income from:

• Goods created and sold on online platforms.

• Investment income.

• Part-time or seasonal work.

• Self-employment or other business activities.

• Services are provided through mobile apps.

3. Filing electronically with direct deposit is the fastest way to receive a refund. Avoid paper returns. Tax software helps individuals avoid mistakes by doing the math. It guides people through each tax return section using a question-and-answer format.

For those waiting for their 2022 tax return to be processed, here's a special tip to ensure the IRS accepts their 2023 tax return for processing. Enter $0 (zero dollars) for last year's adjusted gross income (AGI) on the 2023 tax return. Everyone else should enter their prior year's AGI from last year's return.