Yes, it seems like we just finished filing our taxes. With the April 15 deadline coming right on the heels of last year’s pandemic-delayed deadline, it might be difficult to get motivated to work on your taxes. Here are some simple tax tips to get started. Plan now to get as much back as possible.
Consider itemizing
The standard deduction is $12,400, so it’s tempting to claim it rather than tracking down receipts and tax forms so you can itemize your deductions. But it might be worth it if you are a homeowner with a sizeable mortgage, gave money and “stuff” to charity (remember all that quarantine cleaning?), or paid points when you took out your mortgage. Tax tip for educators: Don’t forget to deduct up to $250 of school supplies even if you don’t itemize.
Claim credit for your “full house”
If your adult children, their significant others, and friends have come to live with you, here’s a helpful tax tip. You may be eligible to claim a $500 tax credit for non-child dependents you support if their income is less than $4,300. You can claim the credit for parents you support, even if they don’t live with you.
Update your information with the IRS
Many of us learned this lesson the hard way with the federal stimulus payments. A simple tax tip is to ensure the account information you have with the IRS is current—and all tax filers on your return are joint owners on the account where you want your tax refund deposited. If the information isn’t consistent, your tax refund can be returned or delayed.
File early
You can’t get a refund until you file. Even if you don’t need to file because your income is low, file anyway to claim a refund for taxes withheld and any credits you might be entitled to. Plus, it prevents any potential identity thieves from filing fraudulently in your name.
Get digital tax statements
Most financial institutions offer digital tax statements. Mid Oregon Credit Union members can login to our Digital Banking and to set up E-Statements. Once you’re inside the widget, you can click the dropdown menu to find tax statements for all your accounts.
Last among our tax tips, when it’s time to file your taxes, consider TurboTax®. From simple to complicated taxes, getting your biggest possible tax refund has never been easier. Mid Oregon Credit Union members can save up to $15 on their federal return using TurboTax—and don’t have pay until they file. Visit midoregon.com/turbotax to get started!
The information in this article for general educational purposes and not intended to provide specific advice or recommendations. Please discuss your particular circumstances with an appropriate professional before taking action.