Tax season is upon us once again, and for many Americans, that means the annual scramble to gather documents, navigate tax law changes, and meet the April 15 filing deadline. But with the right tools and strategies, the process doesn’t have to be so daunting.
According to the IRS, over 90% of taxpayers now file their returns electronically, with many opting for online tax preparation software or mobile apps. If you’re part of this tech-savvy majority, or looking to join their ranks, here are six tips to make your tax filing experience smoother than ever:
- Go paperless: Collecting all your tax documents is half the battle. Many employers, banks and investment companies now offer electronic versions of W-2s, 1099s, and other necessary forms. Opting for digital delivery can save you time and keep your documents organized in one place.
- Explore free filing options: If your gross income is below $84,000, you may be eligible to file your federal return for free through the IRS Free File program. Several tax prep companies participate, offering their software at no cost if you meet the criteria.
- Use your smartphone: Did you know that you can now file your taxes directly from your phone? Top tax apps like TurboTax, H&R Block, and TaxAct all offer mobile filing options. Snapping photos of your W-2 can auto-populate your information, saving time on data entry. Just make sure you’re on a secure Wi-Fi connection.
- Don’t forget about deductions and credits: The tax code is complex, and it’s easy to overlook potential savings. Online tax software often guides you through available deductions and credits based on your answers to simple questions. Common money-savers include the Earned Income Tax Credit, Child Tax Credit, and deductions for charitable donations and student loan interest.
- Double-check your work: Before hitting submit, take a few minutes to review your return for accuracy. Check that your personal info is correct, your Social Security number is entered properly, and that your income and deduction numbers match your supporting documents. Small errors can lead to big delays in processing your return.
- Know when to get help: If your tax situation is particularly complex — think, self-employment income, rental properties, or significant investments — it may be worth consulting a tax professional. Many now offer virtual appointments, allowing you to get personalized advice from the comfort of home.
Remember, while tax season can feel overwhelming, a little preparation and the right tools can go a long way in easing the stress. By embracing digital solutions and staying informed, you can file with confidence and cross one more item off your financial to-do list.
What are your go-to strategies for making tax season less taxing? Share your tips and experiences with the Shopper’s Voice community — we’d love to hear what works for you!
Did you know? E-filing by the numbers
The IRS began accepting e-filed returns back in 1986, when only 25,000 brave early adopters took part. Fast forward to 2022, and a whopping 142.2 million returns, or about 92% of the total, were filed electronically. It’s a prime example of how technology has transformed a once paper-heavy process.