Farewell Holidays; Hello Tax Time

Yes, it’s that time again: The beginning of a New Year with all it’s exciting potential before us. A New Year also means it’s time to get organized in preparation for filing your Federal Income Tax.

Hopefully, you have been keeping good records throughout the year. While you wait for your 2024 W-2 and 1099 income forms to be received, which should happen by the end of January, here are a few tips to make the process flow smoothly.

Gather relevant documents and organize receipts and expenses by category is the way to reduce stress and make the process so much easier. If you are self-employed or work as a freelancer, be sure to include any expenses related to your work and print out copies of your bank statements.

Any life changes that have occurred during 2024, such as having a new baby, getting married, selling or purchasing property will all need to be included in the information you give your tax preparer. It's also a good idea to organize receipts for expenses, big and small. And don’t forget to include documentation of property taxes and mortgage interest you paid throughout the year.

Remember, it’s your signature on the form the is submitted to the IRS. So no matter how good your tax advisor and financial team, you are responsible for the information that has been submitted to them. You don’t want to be in a position of having to file an amended return.

IRS Online Account & PIN

If you do not have an IRS Online Account at IRS.gov, you will need to register to validate your identity. By creating an IRS online account, you can access such documents as your prior year’s adjusted gross income, request tax transcripts, check outstanding tax balances, view IRS notices before they are mailed, and update and save bank information.

Once you have an established Online Account you can request an Identity Protection PIN (IP PIN) which is a six-digit number that prevents someone else from filing a tax return using your Social Security number (SSN). Spouses and dependents are eligible for their own IP PIN if they can pass the identity verification process.

Your Professional Financial Team

Staying on top of your best tax strategies, including the latest updates from the IRS, and merging that information into your long-term financial planning goals requires an experienced team, especially if your tax situation is complex. 

At One Financial Services, our team of financial professionals is here to help guide you into a secure financial future.