Being prepared sooner for this year's taxes and your expected refund means you'll be better set up for the year and even next year's taxes. It may seem early to think about your potential tax refund, but anything you do now to make plan your personal finances and tax filing will help you get the most out of your refund.
Adjust Your Withholdings
If you received a sizable tax refund last year and expect to get a similar amount this year, you may want to consider adjusting your withholdings so that you take home more of your pay during the year. Increasing your paychecks by decreasing your withholdings works best if you already have a budget that works. Be sure to give the extra money a purpose. Pay bills, increase your savings, or set aside the money for seasonal expenses to get the most out of your larger paychecks.
Some people count on their tax refund each year, and purposefully have more taxes taken out. They may count on the refund each year to pay bills. There's also a fear of owing taxes at the end of the year that inspires people to set their withholdings higher. Just remember, if you’re getting a refund, then you received less on every paycheck last year.
Decide How You Will Use Your Refund
If you expect to receive a refund this year, think carefully about how you'll spend it. This isn't "free money." It's money you earned and overpaid to the federal and/or state government. Your refund is an important part of your income, so use it to your advantage.
If you don't already have a dedicated account for this year's holiday spending or fall back-to-school expenses, consider starting one with your refund. You could also get on track with your financial goals.
Watch This short video to learn more about smart ways you can use your tax refund this year:
Organize Your Tax Paperwork
Create a dedicated place in your home for tax paperwork. If you itemize deductions, be sure to save receipts for business expenses, medical expenses, and charitable contributions.
You'll receive tax documentation throughout the year, and if you are self-employed, you may need to pay quarterly taxes. If you can easily access the paperwork, it'll make the chore of keeping up with your taxes easier.
Stay Up To Date On Tax Dates & IRS Resources
Tax Filing Dates
- When can I file my taxes?
- As soon as you receive your W-2 from your employer.
- What is the deadline to file 2022 taxes or request an extension from the IRS?
Date the earliest filers can expect a refund if they claimed EITC (Earned Income Tax Credit) or ACTC (Additional Child Tax Credit): March, 1st 2023. This allows the IRS to verify credits.
IRS Tax Resources
-
- Information about the Earned Income Tax Credit: claiming an EITC
- Mobile app for the IRS: IRS2GO
- How to track your tax refund: Where’s My Refund?
- Information about tax filing dates, refunds, extensions, and deadlines: irs.gov
- Access information about your personal tax situation, including past years’ transcripts and information about how, when, and where to file your taxes: IRS Account Info
Don't Hesitate To Ask For Help
If you have concerns about any tax-related issues, ask a professional tax preparer for help. You don't have to wait until you are ready to file your taxes to seek the advice of a financial expert.
At Sunset Finance we offer efficient tax preparation services. Let us give you a free no-obligation quote when you schedule an appointment. You can get up to $6,000* of your tax money back within 24 to 48 hours of IRS acceptance with Sunset Finance!
Related Posts
