Income tax filing tips

Tax season is officially underway!

Get yourself ready for this year’s tax return with some key tips so you don’t make mistakes or get caught by the IRS.

• File and pay electronically: Returns filed electronically are more accurate than paper filed. According to the New York State Department of Taxation and Finance, if you file electronically, you may receive your refund up to two weeks sooner.
• Use direct deposit: Your refund can be deposited directly in your bank account. When you complete your return, make sure your routing and account numbers are correct.
• File on time: Even if you can’t pay in full, submit it on time to avoid interest and fees.
• Declare all income: It doesn’t matter if you work full-time, part-time or are self-employed, you must provide all sources of income from every W-2.
• Review eligibility requirements for dependents: Make sure to look at whether you can claim your dependent on your return.
• Only claim credits you have proof for: You can only claim the credits you have documentation for. This includes childcare expenses, college tuition, itemized deductions, and self-employment income.
• Sign and date the paper return: If you prepare your return via paper, you must sign it. Your spouse must sign the paperwork if filing jointly. If you hired an accountant, they must sign it.
• Check your refund status online: You can see the status of your state refund with a time frame of when you’ll receive it.
• Review your return: Common filing errors include entering withholding and estimated tax on the wrong lines; using incorrect postage on your envelope; failing to include unemployment income; and entering an incorrect mailing address. Mistakes like this can delay the processing time and your refund.
• Keep copy of return for your records: Hold on to your return and any related tax documents for at least three years, according to the New York state Department of Taxation and Finance.
• Don’t ignore the IRS: If the IRS sends you a letter regarding an error on your return or thinks you owe back taxes, don’t wait – respond. Avoiding them will result in penalties.

First-time tax filing jitters?

If this is your first-time filing taxes, don’t dread the experience. Follow these tips to make your filing less challenging.

• Gather all tax-related documents: Make sure you have your information in one place before you start.
• Get organized: Sort your documents by type. For instance, put your W-2 forms together. You can also create a tax information checklist to help you go through the filing steps.
• Start early: Don’t wait until the last minute to file. Give yourself plenty of time to complete it. If you’re missing information, you have time to track it down. Remember that employers have until Jan. 31 to mail W-2s to employees. You may not receive any tax documents until the beginning of February.
• Mark your calendar: The deadline to file returns is April 15, 2022. Avoid late penalties and interest fees by filing by that date.
• Rely on experts: If you’re using tax filing software, take advantage of the embedded expertise and tools available to make sure your return is accurate.
• Read your return: Review your tax return before submitting it. That includes your personal information, Social Security number, and bank routing and account information. Typos are a common mistake on returns.

The information in this article was obtained from various sources not associated with Adirondack Bank. While we believe it to be reliable and accurate, we do not warrant the accuracy or reliability of the information. Adirondack Bank is not responsible for, and does not endorse or approve, either implicitly or explicitly, the information provided or the content of any third-party sites that might be hyperlinked from this page. The information is not intended to replace manuals, instructions or information provided by a manufacturer or the advice of a qualified professional, or to affect coverage under any applicable insurance policy. These suggestions are not a complete list of every loss control measure. Adirondack Bank makes no guarantees of results from use of this information.