FAQs

The federal individual income tax filing deadline typically falls on April 15 each year. However, if this date lands on a weekend or holiday, the deadline may be moved to the next business day.

Essential documents for tax filing include W-2 forms from employers, 1099 forms for various income sources, 1098 forms for mortgage interest and tuition payments, receipts for deductible expenses, property tax statements, and health insurance documents such as Form 1095-A, if applicable.

It's crucial to have all required forms before filing your taxes. Submitting an incomplete return can lead to processing delays, necessary corrections, or correspondence from the IRS. We advise waiting until you've received your complete tax documentation before proceeding.

Tax deductions lower your taxable income, while tax credits directly reduce the amount of tax you owe on a dollar-for-dollar basis. Generally, tax credits are considered more beneficial as they have a more direct impact on your tax liability.

Electronic tax filing is available for most individuals. Options include using tax preparation software, enlisting the services of a professional tax preparer, or utilizing the IRS Free File program if you meet the eligibility requirements.

The IRS recommends retaining tax records for a minimum of three years. However, it's advisable to keep them for seven years if you claim a loss. For certain business or property records, indefinite retention may be necessary.

All income, including that from side gigs or freelance work, must be reported on your tax return, even if you didn't receive a 1099 form. Freelancers should also be aware that they may be required to pay self-employment tax.

Strategies to potentially reduce tax liability include contributing to retirement accounts like 401(k)s or IRAs, claiming eligible tax credits, tracking deductible expenses, and making estimated quarterly payments if self-employed. For personalized advice, we recommend consulting with a licensed tax professional.

Even if you're unable to pay, it's important to file your return on time. The IRS offers several options, including payment plans, extensions to pay, and financial hardship programs. Filing your return and arranging a payment plan is less serious than failing to file altogether.

A tax filing extension provides additional time to submit your return, typically until October 15. However, it does not extend the deadline for payment. Any taxes owed are still due by the original April deadline to avoid potential penalties and interest.