Pure’s Associate Advisor, Garrett Bradbury, CFP®, prepares you to file your federal income tax return with these filing tips to avoid delays, offer tax saving strategies, and maximize your refund.
FREE GUIDE | 2023 Tax Planning Guide
Transcript
Get ready for the 2023 tax season! True, filing isn’t due until April 18th (May 15* for CA disaster areas) but it always takes longer than anticipated and if something unexpected pops up you’ll have time to react. Here are some tips to get you moving!
Start Early to Avoid Delays
If your tax return is simple, filed with a single W-2 and the standard deduction, get it done early and e-file. Avoid potential mail delays by setting up direct deposit. If your tax return is more complex, start gathering your information and engage help as soon as possible.
Gather 2022 Tax Documents
Taxpayers should develop a record keeping system, electronic or paper, that keeps important information in one place. This includes year-end income documents like Forms W-2 from employers, Forms 1099 from banks or other payers, Form 1099-K from third party payment networks, and Health Coverage Documentation either 1095-A,B or C. Remember, unemployment compensation is taxable on your federal return.
Be Aware of New Rules on Credits and Deductions
Some tax credits return to 2019 levels. This means that affected taxpayers will likely receive a significantly smaller refund compared with the previous tax year. Changes include amounts for the Child Tax Credit, Earned Income Tax Credit and Child and Dependent Care Credit.
Eligibility rules changed to claim a tax credit for clean vehicles. Review the changes under the Inflation Reduction Act of 2022 to qualify for a Clean Vehicle Credit. Those who take a standard deduction may not take an above-the-line deduction for charitable contributions.
File an Accurate Return
Inaccuracies in your tax return are a common trigger for an IRS audit. The IRS checks the information you provide against W-2 forms from your employer; 1099s and payment data from the government itself. If your tax return differs from what the IRS has on file, it may be flagged for a manual review, which could lead to a full-blown audit and possibly delay your refund.
Create an Online Account
An IRS online account lets taxpayers securely access their personal tax information, including tax return transcripts, payment history, certain notices, prior year adjusted gross income, and power of attorney information.
Get Banked to Speed Refunds with Direct Deposit
The fastest way to get a tax refund is by filing electronically and choosing direct deposit. Direct deposit is faster than waiting for a paper check in the mail. It also avoids the possibility that a refund check could be lost, stolen or returned to the IRS as undeliverable.
Get ready to file your federal income tax return with these preparation tips and go to IRS.GOV for verified information. Many other phase-outs, phase-ins, brackets, ranges, and limits have been updated for 2023 which may affect you! Schedule a free tax analysis right online with Pure Financial Advisors to find out.
*Note: After this video was filmed, the IRS extended the May 15 deadline to October 16 for disaster area taxpayers in California, Alabama, and Georgia. Click here for more information.
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IMPORTANT DISCLOSURES:
• Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, LLC, a Registered Investment Advisor.
• Pure Financial Advisors LLC does not offer tax or legal advice. Consult with your tax advisor or attorney regarding specific situations.
• Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
• Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
• All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy.
• Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
CFP® – The CERTIFIED FINANCIAL PLANNER™ certification is by the Certified Financial Planner Board of Standards, Inc. To attain the right to use the CFP® designation, an individual must satisfactorily fulfill education, experience and ethics requirements as well as pass a comprehensive exam. Thirty hours of continuing education is required every two years to maintain the designation.
