1.) Don’t Procrastinate

Filing early gives you a chance to double check all of your documents. Also, the faster you get them done, the faster it’s over!

2.) Choose Direct Deposit

The IRS says people will receive their refund faster by choosing the direct deposit option. If you decide to use this option, double check you’ve entered the correct banking account and routing number. If you’re a Launch member, here is our routing number: 263179532.

3.) Reach Out For Help

There are tons of services to choose from when it comes to filing your taxes and most have free options. If you’re a Launch CU member and you use Turbo Tax, you can receive up to $15 off. A second option is The Volunteer Tax Assistance program. They offer free tax support for those who make $56,000 or less. Lastly, look at IRS Free File. The IRS states if you’re married or single and your 2022 income is under $73,000, you may qualify for free online tax preparation.

4.) Don’t File Until You Have All Documents

Each person’s tax return looks different which means everyone has a different document checklist. Documents can include W2s, 1099 forms, mortgage interest statements (if you’re a homeowner), and the list goes on.

If you’re eager to file your 2022 tax return in January or early February, the IRS has a warning: You’ll need to wait for “key documents” before filing in 2023.

In a release last week, the IRS urged “early filers” to watch for Form 1099-K, which reports income for third-party payment networks such as Venmo or PayPal.

“A little extra caution” could save time and effort, the agency said, because if you don’t report 1099-K income, you may owe money and need to file an amended return.

5.) Protect Against Tax Scams & Frauds

The IRS says thousands of people have lost millions of dollars because of tax scammers. The IRS will never ask for personal information by email, text message, or social media channels. Some of these scams include scammers asking for information related to refunds, filing status, personal information, transcripts, and PIN verification. The IRS has listed out potential scams people can look for.

6.) Keep Receipts

Businesses can now email receipts instead of printing it out. The point of this tip is to keep track of your expenses so you can prove each one to the IRS. These can include non reimbursed business expenses If they’re paper, a trusty shoe box works and if they’re electronic, create a folder to store them.

7.) Always File!

Don’t avoid filing because you don’t have the funds to pay your taxes. You’ll receive separate penalties for not filing or paying. The IRS suggests considering one of their repayment plans if you can’t pay right away.

8.) Claim Deductions Available To You

Deductions can include expenses like charitable donations, medical costs, childcare expenses, and education expenses. There are various forms depending on what type of deduction you’re filing. The best way to find out which form to use is by contacting a tax professional or looking on the IRS’s website. Turbo Tax rounded up the 10 Most Overlooked Tax Deductions.

9.) Keep Tax Documents For At Least 3 Years

It’s important to keep tax documents for 3 years because that’s how long the IRS has to audit you and assess additional taxes. Businesses keep your tax documents for 5-6 years.