Tips, Deductibles, and Deadlines
Every year, Americans scramble to file their personal tax returns by the deadline. This year, that date is April 15. Whether you usually get a return or not, we have some tips to help maximize your deductions, make filing a bit less stressful, and plan ahead for next year.
Key Dates to Remember
The deadline for filing your 2023 taxes is April 15, 2024. If there’s a chance you will miss that due date, you can always file for an extension using IRS Form 4868. This will give you until October 15 to get your taxes done.
Choose Your Filing Method
To help you save time, money, and some of your sanity, the IRS now offers FREE online guided federal tax preparation for most filers. Those options are perfect for individuals and those filing jointly who don’t have a lot of deductions or other complicated tax preparation. If you have sold real estate or investments in the past year or you own rentals, look for a professional tax filing option.
Before you start working on your tax return, there are some documents you’ll need. Those include:
- W-2s
- Pension and annuity information
- Rental income and expenses (if applicable)
- Retirement plan information
- Scholarships and grants received
- 1099 forms
- 1099-DIV forms (if applicable)
- Social Security numbers (including children)
- Unemployment compensation (if applicable)
Claim Your Dedications and Credits There’s a good chance you can claim some deductions and credits for 2023. When you do, it can reduce your taxable income, which puts you in a good position for a return. Here’s a quick list of the possible deductions and credits you may be able to claim, according to the IRS.
Deductions:
- Donations to charities
- Home equity loan interest
- Medical or dental bills
- Childcare expenses
- Early investment withdrawal penalties
- Student loan interest
- Educator expenses
- Mortgage interest
- Professional tax return costs
- Retirement contributions
- Sale of home information
- State income or sales taxes
- State property taxes
- Volunteer work expenses
Credits:
- Energy efficiency upgrades for your home
- Purchase of an electric vehicle
- Family and dependent credits
- Healthcare credits
- Income and savings credits
- Lifetime Learning credits
Keep a Paper/Data Trail
The IRS urges taxpayers to hang onto their tax return paperwork and data, as well as any receipts and files, for seven full years. To reduce your stress, put everything in an oversized envelope and lock it away somewhere safe. Additionally, start a new file for your 2024 taxes, including medical receipts and other possible deductions.
Flex Your Savings and Boost Your Return
Whether you’re getting a return this year or you just want to plan ahead and have the money to cover next year’s tax liability, Central Willamette offers a Flex12 CD. With this 12-month NCUA-insured certificate, your rate of return goes up with the market. All it takes is a $750 initial deposit. Plus, you can add money to the account at any time. Open yours at any branch or call (541) 928-4536.