With one month left until the federal tax deadline, it’s time to start thinking about filing your taxes. The IRS has already received about 54 million individual returns, but there are still some key things you need to know this season.
As of now, the average tax refund is $3,182, up 5% from last year. However, this number may change as more returns come in. The federal tax deadline this year is April 15 for most filers, but residents of eight states affected by natural disasters have until June 17 to file and pay taxes owed.
Here are three key things to keep in mind before the filing deadline:
1. Take advantage of free tax filing options: This year, taxpayers have several free filing options, including the IRS Direct File pilot program and IRS Free File. You can also consider Volunteer Income Tax Assistance, Tax Counseling for the Elderly, MilTax, or private company software.
2. Don’t overlook tax credits: Many eligible taxpayers miss out on the earned income tax credit (EITC), a valuable tax break for low- to moderate-income workers. See if you qualify for tax credits for buying a vehicle or making home energy improvements as well.
3. Lower your tax bill: There are still ways to reduce your tax bill or boost your refund for the current tax year. Consider making pretax individual retirement account contributions or contributing to a spousal IRA. You may also qualify for the saver’s credit for making retirement contributions or make health savings account contributions if you have an eligible high-deductible health insurance plan.
Remember, the tax deadline is approaching fast, so be sure to gather all necessary documents and start preparing your tax return. If you have any questions or need assistance, consider consulting with a tax professional. By staying informed and taking advantage of available resources, you can make the tax filing process smoother and potentially save money on your taxes.
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