Tax Tips for 2024

Jan 31, 2024 | Taxes

The 2024 tax filing deadline is approaching faster than you may think! Try not to let the burden of taxes dampen your spirits; we’ve got your back! While taxes may be inevitable, the associated stress and hassle don’t have to be for you. In this blog post we’ll help equip you with valuable tips to breeze through this tax season.

Filing Deadlines

The deadline to file your 2023 tax returns is April 15, 2024. Taxpayers living in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day holidays. October 15, 2024, is the due date for extension filers.

Reportable Income

Remember that all income, including from part-time work, sides jobs, retirement account distributions, investments, or the sale of goods is taxable. In addition to W-2s, you may receive 1099 statements and K-1s for reportable income.

A new 1099 statement, Form 1099-K, is issued to anyone who accepts payments from credit cards or third-party payment networks such as PayPal and Venmo. If you used a payment app or online marketplace and received over $20,000 from over 200 transactions, you will receive a 1099-K with income reported to the IRS. You shouldn’t receive a Form 1099-K for personal payments like money received as a gift or repayment of shared expenses which is not taxable. In the future, note those payments as “personal.”

Avoid Scams

Beware of tax scams. It is important to remember that the IRS never initiates contact with taxpayers by email, text messages, or social media to request personal or financial information.

Get Organized

1. Create a dedicated folder: set up a folder and/or folder on your computer for all your tax-related documents. Keep it easily accessible for stress-free organization and safely locked away.

2. Gather your documents: Keep an eye out for W-2, 1099, and other tax statements arriving by mail or e-delivery.

3. Compile Deductible Receipts: Collect receipts for deductible expenses, such as charitable donations or business expenses. Stay organized by categorizing them in an envelope or file within your dedicated tax folder.

4. Set an appointment with your Tax Preparer: Aim to complete your return before April 15th to avoid any last-minute rush.

Go Electronic

Filing a complete and electronic return and using direct deposit to a bank account with a routing number is the best way to avoid a delayed refund. Taxpayers who want a paper check are much more likely to report an issue getting their refund because of non-receipt, forgery, theft or checks returned for a bad address, compared to taxpayers using direct deposit.

Go Online

Taxpayers can create an Online Account at IRS.gov/account to access helpful information. With an Online Account you can access data from your most recently filed tax return, get account transcripts, sign power of attorney and tax information authorizations, get notifications, and make and manage payments.

Get Help

IRS certified volunteers for low-to-moderate income (under $64,000 in adjusted gross income) and elderly taxpayers (age 60 and older) will assist eligible taxpayers with inputting and electronically filing tax returns. For more information, visit Free Tax Return Preparation for Qualifying Taxpayers.

The Department of Defense offers MilTax which is free return preparation and electronic filing software for all military members, and some veterans, with no income limit.

The IRS claims to offer improved phone service and an expanded customer call back feature to significantly reduce wait times. The phone number for individuals is (800) 829-1040 and for businesses the number is (800) 829-4933 (hours are 7:00 AM to 7:00 PM local time).

Stay organized, stay proactive, and make this tax season easy. And if you need anything, please contact your GreenUp Wealth Advisor. We’re here to help.

GreenUp Wealth Management is a registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Author

  • Kyle Barclay, CFP®

    Senior Vice President | Wealth Advisor | Kansas City -- Kyle is a CFP® and has been in the financial services industry advocating for clients helping them reach their financial goals for over a decade. Prior to joining GreenUp Wealth Management in April of 2021, Kyle served clients as a financial advisor at a broker dealer and a registered investment advisor for 10 years. Before working in financial services, Kyle spent 8 years working in management for independent grocery stores across Missouri and Kansas always keeping a customer first mentality. As a leader in the grocery industry, he focused on enhancing each store’s customer experiences by tailoring each store’s product options, implementing new customer services, and training employees how to better understand how to best serve their customer in their respective departments.

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