Tax Checklist: 5 Things to Remember

No matter who you are or how much experience you have, tax season can feel daunting. There’s a lot to remember and a lot of factors to consider while filing. The American tax system, for instance, involves around 800 forms—some with convoluted rules and requirements.

Luckily, there are plenty of resources, like this tax checklist, available to ensure that filing goes smoothly this year. Below are a few key things to keep in mind as you approach the current tax season.

1. File Your Taxes on Time

This may seem obvious, but filing your taxes by the due date is incredibly important. There are two main penalties in place if you’re unable to meet the deadline: the failure to file penalty and the failure to pay penalty. Both of these can add up to 25% of your taxes owed, meaning that you’ll be paying significantly more if you miss the deadline.

Avoiding these penalties is easy: just set a reminder in your calendar and remember to file your taxes by April 15, 2024. However, if this date seems unattainable, filing for extensions is possible, and can give you a bit more breathing room.

2. Have Your Personal Information Ready

Not knowing your personal information and the types of taxes you have to pay or claims you are able to file is a common mistake. There are a few key pieces of personal information you should know before filing your taxes this year:

• Your income as a whole, including investment income
• Social Security numbers for yourself, your spouses, and your dependents
• Your marital status and whether you’re filing together or separately
• Any deductions and expenses you may have which impact your taxable amount

Speaking with an expert in order to clarify which forms are needed for which tax claims can ensure you’re getting it right the first time. Consult the IRS' directory of credentialed experts to find legitimate assistance, or browse other free resources at IRS.gov.

3. Prepare for Any Increases in Your Taxes

While filing your basic tax returns can be straightforward if you’re only receiving one income from a single employer, it can get a little complicated if you have other means of income to declare. For instance, your taxes may increase if you are receiving rental income, stocks and shares, or even a salary from secondary employment. Any additional means of income need to be declared for tax purposes and you will more than likely have to prepare yourself for a tax increase to account for these.