It’s tax season, and we all can use some tips to make filing easier and that result in more money in our pockets.
IRS Offers Free Tax Filing
New in 2024, eligible taxpayers can take advantage of a free online federal tax filing program provided by the IRS that uses guided tax preparation software. Taxpayers who have an annual gross income of $79,000 or less qualify for a free tax return.
Taxpayers whose annual gross income is greater than $79,000 can still use the Free File Fillable Forms program but also should know how to prepare their tax returns. This option is a public-private partnership between the IRS and many tax preparation companies providing free online tax preparation and filing. These are electronic federal tax forms, equivalent to a paper 1040 form. Both program options are safe and secure.
These tax providers are participating in IRS Free File in 2024:
- Drake (1040.com)
- Online Taxes
- TaxHawk (FreeTaxUSA)
Deductions and Credits
Deductions are vital in reducing taxable income. While most taxpayers claim the standard deductions, which change yearly with inflation, some choose to itemize for a more significant reduction. Thorough documentation is essential when itemizing, and your tax consultant can advise which suits your circumstances.
Consider strategies other than the straightforward methods when making the most of your deductions. Now is the time to rethink your filing status. Have you maximized your IRA and HSA contributions?
For families with qualified dependents under 17, you may be eligible for a partial refund when filing in 2024 with the child tax credit. Use this reference list when determining your eligibility for other tax credits:
- Out-of-pocket charitable donations
- Last year’s state tax you paid
- Self-employment social security tax
- Child and dependent care credit
- State sales tax deduction
- Earned income tax deduction
- Refinancing mortgage points deduction
- American Opportunity credit
- Student loan interest paid deduction
- Moving expenses for your first job deductions
Find more tips for homeowners.