Tax Tips

Suppose you live in an area that’s prone to natural disasters. In that case, it’s essential to prepare to manage your important documents and paperwork and know what to do if those materials are lost. Here are some tips from the IRS:

• Contact the IRS or search their database online for help reconstructing records after a natural disaster or casualty loss.
• Download  Publication 547, Casualties, Disasters, and Thefts, and Publication 584, Casualty, Disaster, and Theft Loss Workbook, to figure out your loss on business and income-producing properties in the event of a natural disaster.
• Read Publication 3067, IRS Disaster Assistance – Federally Declared Disaster, for information about how federally declared disasters affect individuals and business owners. This document also covers the assistance available to victims.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Footnotes and Sources

9. ^{IRS.gov, October 17, 2024}

If you own a farm, ranch, range, or orchard, here are some tax tips to consider:

• Insurance payments from crop damage may count as income. Check with your tax professional.
• If you sold livestock or items you bought for resale, you may have a taxable event.
• You may be able to deduct ordinary and necessary expenses that you paid for your business.
• Consider the tax treatment of your farm’s full and part-time workers.
• If your expenses are more than your income for the year, you may have a net operating loss. You may be able to carry that loss over to other years.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹⁰

Footnotes and Sources

10. ^{IRS.gov, June 4, 2024}

 

Two education credits are available to American taxpayers: the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The IRS has lots of information about these two credits on their site, but here are some highlights you might find helpful:

• The AOTC is allowed for expenses for course-related books, supplies, and equipment not necessarily paid to the educational institution but needed for attendance.
• The AOTC is limited to four years, but the LLC can be claimed for as many years as you like.
• To claim either credit, use Form 8863.
• The AOTC is worth up to $2,500.
• Your modified adjusted gross income must be $80,000 or less to claim the full credit.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁸

Footnotes and Sources

8. ^{IRS.gov, September 11, 2024}

While the IRS website might not be in your top bookmarks, the website is helpful for a lot of things regarding taxes. Here are just a few things you can do on the site:

• Use Free File to access brand-name tax software and online fillable forms.
• Use the IRS e-file system: a safe, easy, and common way to file your tax return.
• Check the status of your tax refund.
• Find out how to make payments electronically to pay your federal taxes. You can use a credit or debit card or enroll in the US Treasury’s Electronic Federal Tax Payment System to pay your taxes.
• Get tax forms and publications, including helpful tips for frequently asked questions.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁸

Footnotes and Sources

8. ^{IRS.gov, August 22, 2024}

Properly preparing your tax return can be tricky, but here are some tips to help you avoid common errors:

• Submitting your tax return online ensures greater accuracy than mailing it in. The e-file system can detect common errors and send your filing back to you for you to correct, saving you a ton of time in processing and delays.
• Print or type your full name, taxpayer identification number (SSN), and address (including zip code) clearly.
• Choose only one correct filing status.
• Enter your income on the correct lines and include a Form 1040 to declare additional income and adjustments as needed.
• Put brackets around negative amounts.
• Keep a copy of the signed return and schedules for your records.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

^{Tip adapted from IRS8}

Footnotes and Sources

8. ^{IRS.gov, May 16, 2024}

If you don’t receive your W-2 or 1099 by January 31 of the year, you are filing taxes, or if the information on these forms is incorrect, contact your employer/payer. If you still haven’t received the forms you need by the end of February, you can contact the IRS at 800-829-1040, and they may be able to help.

When you contact the IRS, they will also reach out to the employer/payer for the information you need, and they will also send you Form 4852, a substitute for a W-2 or 1099. To do this, they will ask for your employer/payer’s name, address, and phone number (as well as your information).

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS¹¹

Footnotes and Sources

11. ^{IRS.gov, April 3, 2024}

If you file your taxes using itemized deductions, you may be able to deduct medical and dental expenses for yourself, your spouse, and your dependents. According to the IRS, you may deduct only the total medical expenses exceeding 7.5% of your adjusted gross income.

Some types of medical care expenses that may be deductible include:

• Payments for the diagnosis, cure, treatment, and prevention of a disease
• Payments to doctors, dentists, surgeons, chiropractors, psychiatrists, psychologists, and nontraditional medical practitioners
• Paying for inpatient hospital care or nursing home care
• Fees associated with inpatient treatment for alcohol or drug addiction
• Payments to participate in a weight-loss program for a specific disease diagnosed by a doctor (such as obesity)

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Footnotes and Sources

9. ^{IRS.gov, September 26, 2024}

When was the last time you checked your tax withholding? Having the correct amount of tax withheld from your wages is part of managing your taxes. The amount you withhold depends on your income, the number of children you claim on your return, and more.

The IRS has a helpful tool on their site called their Tax Withholding Estimator that can help you know if you have too much or too little tax withheld from your wages. Before using the tool, have all your paperwork handy, including your W2, 1099, 1095-A, and 1099-NEC, and any other forms to determine how much your income is taxable.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Footnotes and Sources

9. ^{IRS.gov, January 30, 2024}

Want to receive your tax return quickly? The IRS recommends filing your return online and providing your direct deposit information. In addition to receiving your refund quicker, using direct deposit has a few other benefits.

Direct deposit is also fast, secure, and accessible. You must provide your bank account and routing number to sign up for direct deposit. Taxpayers should have this information available when ready to file because the IRS can’t accept it after filing a return.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁷

Footnotes and Sources

7. ^{IRS.gov, April 11, 2024}

Taxpayers whose adjusted gross income is $79,000 or less may be able to file their federal taxes for free using IRS Free File and do their state taxes at no charge through the same service. More than 20 states have a Free File program similar to the federal service.

IRS Free File partners also feature several helpful online products. Through Free File, taxpayers can choose the Free File option, guided tax preparation, or Free File Fillable Forms. Make sure to filter for the free options because some additional services may have a charge.

This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.

Tip adapted from IRS⁹

Footnotes and Sources

9. ^{IRS.gov, August 20, 2024}