INDIANAPOLIS — Tax season is officially underway, and experts say the biggest mistakes happen long before taxpayers ever hit submit.
From missing paperwork to rushing to file, tax professionals say preparing early can save time, money, and stress. For some taxpayers this year, it could even mean a larger refund.
Tax offices across Central Indiana are already busy as millions of Americans begin gathering paperwork, crunching numbers, and hoping for a refund.
“It’s certainly better to get in earlier than later,” said Judd Lawrie, a certified public accountant. “The closer to the deadline, everybody’s trying to get in and get those things done.”
Lawrie recommends gathering documents early and being organized before filing.
“The more organized you are, the sooner that you get it in for people to work on, the better the results will be for you,” Lawrie said.
What to gather and prepare before filing
Tax professionals recommend having the following documents and information ready before filing your return:
- W-2 forms from employers
- 1099 forms, including freelance, contract or unemployment income
- Childcare expense records
- College tuition statements
- Charitable donation records
- Mortgage interest statements
- Medical expense documentation
- Itemized deductions and receipts
- Records for multiple income sources, if applicable
This tax season also comes with several changes that could impact how much taxpayers owe or how much they get back.
“This year, overtime is not taxable. Tips are not taxable. There’s an extra deduction for seniors over 65. Auto loan interest is a new deduction, and there’s some limitations. It has to be a new car assembled in the US, and there’s some income limitations,” Lawrie said.
Lawrie says he has already seen the new tax breaks result in larger refunds for some taxpayers, making it important to be strategic when filing.
“It’s not illegal to avoid paying taxes, it’s just illegal to evade paying taxes,” he said.
Tax professionals are also warning taxpayers to stay alert for scams during filing season. Lawrie says sensitive information should never be sent through unsecured methods.
“Don’t email sensitive information. Don’t email your W-2s and your Social Security cards for you or your dependents. Either use a secure portal or take those paper copies in person,” he said.
The IRS has repeatedly warned that it will not call taxpayers about tax issues or demand immediate payment over the phone.
The federal tax filing deadline is in mid-April, but Laurie says waiting until the last minute can create unnecessary delays, especially for those expecting refunds.
“With larger refunds, you don’t want the government holding on to your money longer than they have to. So get in early, get filed early, get your refunds back,” Lawrie said
