Important 2024 Tax Filing Tips

As the 2024 tax filing deadline approaches, we want to ensure you feel confident and well-prepared. Whether you’re anticipating a refund, preparing for payments, or aiming to stay compliant, thoughtful planning can simplify the process. This letter outlines essential steps to prepare for tax season and highlights key deadlines to help you stay on track.

Step 1: Gather Essential Tax Documents

The first step to filing your taxes is collecting all necessary documents that report your income, deductions, and tax credits. Here’s a list of the most common tax forms and when you can expect to receive them:

• W-2 Forms: Sent by employers by January 31. These forms detail your earnings and the taxes withheld from your paycheck.
• 1099 Forms:
  • 1099-R: For distributions from pensions, annuities, retirement or profit-sharing plans, IRAs, insurance contracts, and similar sources, Sent by January 31.
  • 1099-NEC: For freelance or contractor income. Sent by January 31.
  • 1099-MISC: For miscellaneous income like rental payments. Sent by January 31.
  • 1099-INT: Reports interest income from banks or financial institutions. Sent by January 31.
  • 1099-DIV: For dividend income or distributions. Typically sent by mid-February.
  • 1099-K: For digital payments exceeding $5,000, sent by January 31.
• 1098 Forms:
  • 1098: Reports mortgage interest. Sent by January 31.
  • 1098-E: Reports student loan interest. Sent by January 31.
• 1095 Forms: Reports health insurance coverage. Typically available by early February.
• Schedule K-1: Reports income from partnerships, S-corporations, or trusts. Delivery can vary but is generally sent by March 15, with some extending to May 15.

Ensure you save all these forms when they arrive, as they are vital for filing your taxes accurately.

Step 2: Organize Your Records

In addition to your tax forms, gather any receipts or records that may help you claim deductions or credits. These could include:

• Receipts for charitable contributions.
• Records of medical expenses.
• Documentation for education expenses, such as tuition or books.
• Business expense records if you’re self-employed.

Step 3: Review Life Changes

Major life events can impact your tax and financial situation. Be sure to account for the following:

• Marriage or Divorce: These can change your filing status.
• Having or Adopting a Child: You may be eligible for tax credits or deductions.
• Buying a Home: Mortgage interest and property taxes could be deductible.
• Changing Jobs: Review new income levels and withholdings.

If you have experienced any of the life-changing events mentioned above, we encourage you to contact our office, as these circumstances are likely to affect your financial and tax situation.

Step 4: Know Key Deadlines

• April 15, 2025: Deadline for filing your 2024 federal tax return, unless you file for an extension.

Filing early helps avoid delays and ensures you have time to address any issues.

Step 5: Consider Professional Guidance

Navigating tax laws and credits can be complicated. Seeking professional advice can help you optimize your return and ensure accuracy.

Additional Tips

• Use Direct Deposit: It’s the fastest way to receive your refund.
• Keep Digital and Paper Copies: Organize your tax records for at least seven years.
• Stay Informed: Tax laws change often, so keep an eye on updates that may affect you.

If you have questions or need assistance as you prepare for the 2024 tax filing season, please do not hesitate to contact us. We’re here to make this process as smooth as possible for you.

*Prepared by Jonathan Neher

Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Avenues to Wealth Financial Advisors and Cambridge are not affiliated.