It’s income tax season. For filers tackling tax prep now, it’s hard to be an expert at something you only do once a year.
With the April 15 deadline fast approaching, here’s how to make filing your 2024 tax returns easier.
Have your personal information ready
Get Social Security and tax ID numbers on hand for you, your spouse and all dependents. A copy of last year’s state and federal tax returns can help remind you what financial documents you need now.
Gather all your income-related documents
Organizing your tax records and income documents ahead of time can make a difference. Start by collecting year-end forms like W-2s from your employers and 1099 forms from contract work, investments or other earnings. If you made federal estimated tax payments during the year, have those amounts handy, too.
Don’t file too early, but don’t wait until the last minute
That’s the advice of Bridget Sullivan Mermel, a certified public accountant and financial planner in Chicago. Some of your financial documents might still be in the mail and filing without them could mean doing this over again.
“Maybe your finances are changing, or you might forget you have some little savings account somewhere,” she said. “If I wanted to take my time, I’d do it between March 15 and April 1.”
File your taxes electronically
While taxpayers can file through the mail, it often slows processing and potential refunds.
- Use tax preparation software for your federal returns. Illinois joined 24 other states in letting taxpayers file directly with the IRS for free, through the agency’s Direct File program. Filers can choose to automatically import data from their IRS account and answer questions that will walk them through eligible deductions or credits for their federal tax return. However, IRS Direct File is not available to those who have unreported cash income such as tips, alimony or gig work income. Many taxpayers can file federal tax returns electronically through the IRS Free File service. The no-cost program offers commercial tax preparation software packages for filers with less than $84,000 in adjusted gross income. Filers not eligible for Direct File or Free File can choose other services such as the free options from TurboTax and H&R Block.
- File your state taxes electronically. While taxpayers can file by mail, it often slows the processing time and potential refunds. Illinois taxpayers can file their state tax returns and make payments online through MyTax Illinois, which is free. You will need an Illinois Personal Identification Number or a valid Illinois driver’s license or identification card.
Seek out help from a volunteer tax preparer
A volunteer tax preparer can bring peace of mind, said John Dussman, who coordinates volunteers at St. Viator Church in Irving Park.
“We’re all IRS-certified, and they know that if they get it done by us, it’s not a mistake they made. They can come back and talk it through with us, and we make it right,” Dussman said.
Eligible filers can find volunteer tax preparers through several organizations in Illinois, including:
- Chicago-based nonprofit Ladder Up offers free walk-in tax prep services for people earning up to $35,000 and families earning up to $67,000. Their tax sites are open on a first-come, first-served basis. More info is at goladderup.org.
- AARP Foundation Tax-Aide provides free tax assistance at Illinois sites until April 15. AARP membership is not required. There are several ways to receive help, from in-person to remote service, or a drop-off option, where filers leave their paperwork for a volunteer, then return to finalize and file. Visit taxaide.aarpfoundation.org.
- The IRS Volunteer Income Tax Assistance program and its Tax Counseling for the Elderly program help a range of people, such as those making $67,000 or less, individuals with disabilities, limited English-speaking taxpayers and those who are 60 and older. Illinois providers who offer the programs can be found by visiting irs.treasury.gov/freetaxprep or calling 1-800-906-9887.
Know when it’s time to see a professional
If you own a business, have a lot of investment income or itemize many of your deductions, it may be worth seeing a tax professional, like a certified public accountant or enrolled agent authorized by the IRS.
They should be someone you trust, said Lisa Niser, who has run her tax practice for over 20 years. Ask about their certifications, experience and how they protect your personal information from potential hacks, she said.
“It’s worth investing in. You have a doctor for your physical health, and you can have a financial adviser and accountant for your financial health.”
Get your refund faster with direct deposit
The fastest way to get your tax refund is through direct deposit, which the IRS can send to a bank account, banking app or reloadable debit card. Electronic refunds are 16 times less likely to be lost, stolen or uncashed compared to paper checks, according to the U.S. Treasury Department.
Tax timelines to know other than April 15
- Expect federal tax refunds via direct deposit within 21 days of filing, according to the IRS. It can take up to eight weeks by mail.
- Illinois tax refunds can typically be expected four weeks after filing, but if filed by mail, they can take up to eight weeks. Filers can check the status of their refund on the MyTax Illinois online portal.
- Requesting an extension before the April 15 deadline will give taxpayers a six-month extension to file their returns. However, late penalties and fees will begin accruing April 15. “If you owe taxes and are unable to pay in full right away, consider setting up a payment plan that fits your budget to pay off the balance over time,” said Becky Santiago, director of Ladder Up’s tax assistance program.
