What’s New for Individual Tax Clients in February:
As we step into February, the tax season is in full swing. Whether you’ve already gathered your documents or are just starting to organize, staying informed on updates and deadlines can make filing your taxes easier and stress-free. Here’s what individual taxpayers need to know this month:
1. Tax Filing Deadline Awareness
Although the main deadline for filing your 2024 taxes is April 15, filing earlier has its advantages. If you’re expecting a refund, submitting your return sooner can mean receiving your money earlier. Additionally, filing early helps prevent fraud, as it minimizes the opportunity for identity thieves to submit a fraudulent return in your name.
Take the time to double-check your personal information (like Social Security numbers and dependent details) to avoid any errors that could delay processing.
2. IRS E-Filing is Open
The IRS is now processing e-filed returns for the 2024 tax year. Choosing to e-file your return, combined with direct deposit, is the fastest and most secure way to receive your refund. If you’re waiting on forms like W-2s or 1099s, now is a great time to gather all necessary documents so you’re ready to submit your return.
3. Key Tax Credits and Deductions
There are a few key credits and deductions that could make a big difference on your tax bill this year:
•Recovery Rebate Credit: If you didn’t receive a stimulus payment you were entitled to in prior years, you might be able to claim it on your 2024 return.
•Energy-Efficient Home Improvements: If you made upgrades to your home, such as installing solar panels, energy-efficient windows, or a new HVAC system, you could qualify for credits under the Inflation Reduction Act.
•Premium Tax Credit: If you had health insurance through the Marketplace and experienced a change in income or family size in 2024, you may qualify for this credit. Make sure you’ve received Form 1095-A from your insurer.
4. Watch for Missing Documents
By the end of January, employers and financial institutions should have issued key tax documents like W-2s, 1099s, and 1098s. If you haven’t received yours yet, it’s time to check your email, online accounts, or physical mail. Missing forms can cause filing delays, so reach out to the issuer as soon as possible if you suspect something is missing.
5. Identity Protection PIN (IP PIN)
The IRS offers an Identity Protection PIN program to help protect taxpayers from identity theft. This six-digit code is a simple way to add an extra layer of security to your return, preventing thieves from using your information to file a fake return. If you’ve previously been a victim of identity theft, consider opting into this program.
Proactive Steps to Take This Month
•Start organizing your tax documents in a secure folder or digital platform.
•Use a tax organizer or checklist to ensure you don’t miss anything.
•If you’re unsure about your eligibility for credits and deductions, consult a tax professional to maximize your refund and reduce your tax liability.
Final Thoughts
February is the perfect time to prepare your taxes, get your questions answered, and avoid the last-minute rush. Whether you’re filing your return on your own or working with a professional, staying informed about these updates can help you file with confidence.
Need assistance? Reach out for professional tax support to make sure your return is accurate, on time, and maximized for every credit and deduction available to you. Let’s make this tax season a smooth one!