Although income tax returns are not due until April 15, it’s always good idea to plan ahead and file your taxes early, especially if you expect to get a tax refund. Here are six tips to get you started:
1. Get ready for the arrival of records. If you don’t already have a file for your tax documents, select a single location (even if it’s just a large envelope) to collect your W-2s, statements, and other tax-related documents as they arrive. If you receive records electronically, create a “2018 taxes” folder or subdirectory.
2. Contribute to an individual retirement account (IRA). Most Americans can contribute $5,500 to a Roth or traditional IRA for 2018 ($6,500 for those age 50 and older) until the tax filing date.
3. Decide how you want to do your taxes. Do you like to do it yourself or do you want to hire a pro? Do you prefer pen and paper or a computer? Now’s the time to decide. If you’re a member at FTWCCU, you can login to Home Banking and click the ‘MyTurboTax’ tab to get started today.
4. Find your forms. If you file by paper, you can get forms from the library or at IRS.gov. If you file electronically, get your software or sign in to Home Banking to get started today.
5. Consider electronic filing. Taxes filed electronically are processed faster than paper ones, and refunds are issued within 3 weeks. Alternatively, if you file your tax return on paper, it will take 6 to 8 weeks to receive your refund.
6. Use direct deposit. Regardless of whether you file electronically or on paper, consider having your refund check directly deposited into your credit union account. It’s another way to get your return faster.
The Tax Cuts and Jobs Act was enacted in December 2017 which made changes to tax rates and Federal income tax withholding. To learn about these changes and how it will affect filing, go to the IRS website.