What Taxpayers Can Do Now To Get Ready To File Taxes

There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filling experience goes smoothly in 2023.

Gather and organize tax records

Organized tax records make preparing a complete and accurate tax return easier. They help avoid errors that lead to processing delays that slow refunds. Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately.

This includes:

• Forms W-2 from employers
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
• Form 1099-INT for interest received
• Other income documents and records of virtual currency transactions
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance premium tax credits for Marketplace coverage

Taxpayers should also gather any documents from these types of earnings. People should keep copies of tax returns and all supporting documents for at least three years.

Confirm mailing and email addresses and report name changes

To make sure forms make it to them on time, taxpayers should confirm now that each employer, bank and other payer has their current mailing address or email address. People can report address changes by completing Form 8822, Change of Address and sending it to the IRS. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office. They should also notify the Social Security Administration of a legal name change.

Review proper tax withholding and make adjustments if needed

Taxpayers may want to consider adjusting their withholding if they owed taxes or received a large
refund in 2024. Changing withholding can help avoid a tax bill or let individuals keep more money each
payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may
also be reasons to change withholding. Taxpayers might think about completing a new Form W-4,
Employee’s Withholding Certificate, each year and when personal or financial situations change.

People also need to consider estimated tax payments. Individuals who receive a substantial amount of
non-wage income like self-employment income, investment income, taxable Social Security benefits and
in some instances, pension and annuity income should make quarterly estimated tax payments. The last
payment for 2023 is due on Jan. 15, 2024.