Tax season can be a stressful time for many individuals and small businesses. Gathering all the necessary information for filing can be daunting all on its own, but with the right preparations in place, the process doesn’t have to be so overwhelming. Check out this complete guide to preparing for the incoming tax season!
Gather Relevant Documents
The first step to start preparing for tax season is gathering relevant documents. These may include W-2s, 1099s, receipts for charitable donations, business accounting information, and other tax-related documents. It’s essential to keep all these documents organized to find them when needed quickly.
Review Your Income and Expenses
Once you have gathered all your relevant documents, it’s time to review your income and expenses. This will help you identify any deductions you may be eligible for and ensure that you have accurately reported all your income.
Understand the Tax Deadlines
Ensure you don’t miss any critical dates by taking note of the tax deadline date. The federal deadline for individuals and businesses to file their 2022 returns is April 18th, 2023, which may vary depending on your state. Still, the Massachusetts deadline is also on that same date. For those outside those parameters, check with your state to determine the exact deadline. Additionally, should you need more time to file, you must file any extensions to the IRS by April 18th, 2023.
Choose Your Filing Method
After looking through relevant documents and income information, you’ll need to determine the best filing method for your situation. Tax software is an excellent option for those with a simple income situation. These programs will walk you through each step of the process, guide you through the information you need to provide, and identify standard tax deductions or credits you may have missed. In contrast, if you have a complex tax situation involving multiple income streams, it may be worth using a tax professional to help you prepare your tax return. A tax professional can provide valuable guidance and help you take advantage of all the deductions and credits available in your unique situation.
Set Up Direct Deposit
For those prepared to receive a tax refund taking advantage of a reliable, fast, secure, and contactless way to receive your money is essential! The best and fastest way to get your tax refund is to deposit it into your checking account electronically. This system is easy to use, and all you have to do is select it as your refund method through your tax software and type in the account number and routing number or tell your tax preparer you want a direct deposit and provide the information.
Locating your Routing Number & Account Number:
This nine-digit number identifies your financial institution. For example, the routing number for Mechanics Cooperative Bank is 211372048.
This set of numbers identifies your account at your financial institution, and you can locate your account number using one of the methods below:
- Request in-person at a local branch
Take Note of Refund Tracking Tools
Keeping a close eye on your return is recommended and can be done through government websites. For a U.S. federal tax return, visit IRS.gov and use the Where’s My Refund? tool. The status of your refund will be available within 24 hours after the IRS accepts your e-filed tax return. The website tool updates once every 24 hours, usually overnight, so you only need to check once daily. Please note that your financial institution cannot access the status or details of your specific tax refund. To find out the status of your refund, use the following resources:
- gov – Track your federal return using the Where’s My Refund? Tool
- gov – Track your Massachusetts State Return
- gov – Track your Rhode Island State Return
- Other state websites can be found here
Tax season is here! Find a reliable, fast, secure, contactless way to receive your money at Mechanics Cooperative Bank! Contact us to get started by opening an account today.
Mechanics Cooperative Bank and its affiliates do not provide tax, legal or accounting advice. The content provided here has been prepared for informational purposes only and is not intended to provide or be relied on for tax, legal or accounting advice. For more information on filing your taxes, you should consult your own tax, legal and/or accounting advisors before engaging in any transaction. For more information on filing your taxes, visit IRS.gov.