As we approach the end of 2023, it is important to start getting ready to file your taxes. To assist you with this process, we have compiled a guide highlighting some of the most frequent errors people make during tax season and how to avoid them.
File Your Tax Return on Time
By filing your tax return on time and paying any taxes due, you can avoid hefty penalties. The deadline for filing your 2023 tax return will be April 15, 2024. However, if you cannot file by that date, you can file an extension to extend the due date to October. Just keep in mind that this extension is only an extension to file your tax return and not an extension of the amount of time you have to pay. If you cannot pay your taxes by April 15, you may incur penalties and interest, which will continue to accrue until the amount is paid, even if an extension was filed.
Be Careful About Submitting Everything Too Early
Although you do not want to submit your documentation too late, you also do not want to file it too early. If you file your taxes prematurely, you risk not having critical tax documents in place that can ensure your tax return is completed properly. It is best to wait to submit anything until you have obtained all the necessary documents.
Do Not Miss Out on Deductions
It is important to verify whether you are eligible for any deductions and credits. That is why remember when preparing your taxes to indicate whether there have been any births, adoptions, divorces, separations, marriages, or other life changes in the last year.
Check Your Filing Status
Before you file your taxes, check the filing status, primarily if life changes have happened. For instance, if you went through a divorce and are now a single parent with young children, you may be eligible for Head of Household, which can offer you more advantageous tax brackets.
Organize Your Records
While staying organized before tax time may not reduce how much you must pay in taxes, organizing your records will ensure you are ready and prepared to file your taxes on time and not miss any critical documents. To get started with this organization, make sure you:
- Keep all the information you get in the mail in January, including W-2s, 1099s, and other statements.
- Do not throw out any tax-related documents.
- Collect data and receipts from the year.
- Group similar documents together
Contact Ardent Guardian Today To Learn More About Tax Planning in Northern Virginia
At Ardent Guardian, our legal team is here to not only review your tax issues but to assess what these issues can mean for you or your company. More importantly, we are here to provide flexible plans to ensure you obtain the IRS relief you require without adding to your financial stress. If you are located in Northern Virginia and want to know more about Ardent Guardian’s tax services and costs, contact us today at 703-592-6774.