Tax Season 2024: Part 2 of 3
According to a report from IPX1031 almost a THIRD of Americans procrastinate getting their taxes in until the last minute with Millennials (those born from 1981-1996) being the worst offenders. While Ohio is one of the better states about getting it done quickly overall, Columbus is on the list of the top 50 cities that procrastinate. Knowing how competitive we can be with our sports teams, let’s try and pump up those numbers this year and get our taxes out of the way early!
It’s the middle of February and we’ve only got a few more short weeks to go, so let’s get started! Step one is to gather all the materials you need to file. Thanks to Nerdwallet, here’s a non-comprehensive list of things you might need to get started:
Last year’s taxes – not strictly necessary, but good to have to review and may have much of the information you need to do this year. Many software programs will keep this on file for you if you stay with the same program this year as last.
Social Security and/or Tax ID numbers – For yourself, your spouse, and each dependent you are claiming including elderly parents and children (Sorry, you still can’t claim your pets, no matter how clingy they are!).
IP PIN – A more recent addition, if you, your spouse, or a dependent has been issued a PIN from the IRS, you’ll need it.
Bank Account and Routing Numbers – For Direct Depositing your return or automatically paying your outstanding balance. You can refer to your checkbook if you have one for the account you’d like to use.
ACA forms showing proof of coverage under the Affordable Care Act with your employer or private insurance company. Usually 1095-A.
Income Forms – W-2s and various 1099s (including -NEC for contract work, -MISC for things like winnings, royalties, or rentals, -K for Electronic payments thru Paypal or Venmo of $20,000 or more, and -INV, -DIV, and -B for Interest, Dividends, and Broker Transactions, respectively.)
Deduction Documents – Not a complete list, but these include things like Retirement contributions, educational expenses and student loan interest payments, medical bills (if they are more than 7.5% your adjusted gross income), Property Taxes and mortgage interest, charitable donations, classroom expenses, and State and Local Taxes if applicable.
Don’t forget your Tax Credits like American Opportunity or Lifetime Learning credits form 1098-T, your child tax credits for each child under 18 in 2023, and if you make quarterly estimated payments to the IRS, print off your proof of those payments and their amounts.
Got all your forms? Great! Now you can either submit them to a tax professional and pay for their service or choose one of the many online filing options to get them done. The IRS lists several partner companies who offer free guidance filing software for federal taxes if you have a simple return and your adjusted gross income is $79,000 or less. If you make more than that, you can still file electronically with fillable forms online for free, just not with the guided software. Note that if you use the software for State and Local taxes, there usually will be a charge, and often the software will just automatically continue to the State taxes without much prompting, causing people to think that the “free filing offer” was a scam. Your FEDERAL may’ve been free, but the State is not, so they gotcha on a technicality.
Ohio state taxes can be filed through the tax.Ohio.gov tax portal online or with manual forms and Local taxes vary from your locality, but for those in Tiffin, you can either mail them in or drop them into the drop box at the tax department downtown. You can also go to your local library and ask for more information! They can’t help you file, but they may have info and free printed forms and instruction booklets to get you started. Just another great reason we love our local libraries!
So from this Millennial to you, let’s get this done, so we can take a deep breath and check it off the list.
Sarah Palumbo, Marketing Specialist, YLFCU
