Prepping For Tax Season

Prepping For Tax Season

Prepping For Tax Season

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If the thought of tax season sends chills up your spine, you’re not alone. Research shows that nearly 25% of taxpayers worry about making mistakes while doing their taxes. And this lack of confidence turns into procrastination, leading to more anxiety. According to a survey by IPX 1031, about one-third of Americans put off doing their taxes until the last minute. The final day to file your taxes this year is April 15, so you have plenty of time to file. To help ease your tax-time worries, we’ve put together a quick guide for tax season prep.

Organize/Gather Your Tax Documents

Before you file your taxes, you must gather the necessary forms and documents. Here’s a list of standard documents you may need:
  • A copy of last year’s tax return: This helps you understand what deductions and credits you took last year. It also reminds you of any information you may need to file on your 2022 tax return.
  • W-2 forms: A W-2 lists the details of the income you received last year. If you were employed full or part-time, your employer would supply you with a W-2.
  • 1099 forms: If you are self-employed, your clients will send you individual 1099 forms that detail how much you were paid.
  • Form 1098: If you’re a homeowner, this form includes information about the mortgage interest you paid during the year.
  • Form 1098-E: This form is a student loan statement that details how much interest you’ve paid.

Decide If You’ll DIY or Use a Tax Preparer

If you had any significant changes in your life—maybe you got married or divorced—your tax situation will be a little complicated. So, in this case, it’s best to hire a CPA or tax professional.
But if your tax situation is straightforward—for example, if you’re a single filer who receives a W-2— it will be easier (and cheaper) to file using tax software.

Don’t Be Afraid to File an Extension

Tax season can be busy, so it’s understandable if you need to file an extension. This provides you with an additional six months to file your taxes. To do this, you will need to complete IRS Form 4868. But remember that even though you file an extension, you will still need to pay taxes to avoid interest and penalties.

Crush Tax Season With CreditBox

The tips we’ve highlighted today will help you stay ready for whatever tax season throws at you. But sometimes, you may get stuck with an unexpected tax bill. If you don’t have the money to pay it, consider taking a personal loan. 
CreditBox offers flexible loan options that allow you to make predictable monthly payments. Discover what aninstallment loan has to offer and apply today.
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