Tax Tips

Tax season is upon us and while some might cringe at the thought of gathering all the necessary documents and finding the right tax support agency, filing does not have to be stressful. Here are some helpful tips to alleviate stress and help you file with confidence.

The Early Bird

Look out for your future self by making sure you do not miss the tax cutoff date, which is April 18, 2023; If you already know you are not going to be able to file in time, file as early as possible for an extension, which extends your due date to October 16, 2023, to avoid late fees, interest, and other penalties.

Be Prepared

Gather all your documents such annual income (W2, 1099 etc.), marketplace medical forms (1095) and charitable giving documents in one place. Make it easy by using a folder to house all your paperwork so that you have it ready to go when you do your taxes.

Tax Breaks & Deductions

Everyone wants tax breaks, but knowing which ones to be on the lookout for can help you save on your taxes. Here are a few popular tax deductions to get you thinking what you qualify for:

• Charitable Giving – keep a record of your charitable donations throughout the year. Most qualifying agencies/churches will send you an annual giving receipt or offer you a receipt when you donate.
• Child Tax Credit — Know how much you could save by claiming your kids on your taxes? This year, (2022 tax year), the Child Tax Credit has returned to the 2019 amount which is $2000 per eligible child.
• Clean Vehicle Tax Credit – If you purchased a hybrid or electric vehicle in the past few years you may be eligible for a Clean Vehicle Tax Credit up to $7500. The details are available here. 
• Business Write-Offs – If you own your business or have worked in the gig-economy this past year, you may qualify to write off things like gas while making deliveries, meals while on business trips etc. Look at the IRS Gig Economy website for more information. 

File Online

The best way to have a stress-free tax season is to file your tax return online. Gulf Winds Credit Union members have access to a discounted rate when filing with TurboTax. Check out the online platform today and see how easy filing online can be!