Articles - Archived Money Matters

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Tax Time: Get ready!

Most Americans have probably started receiving tax documents in the mail, signaling the beginning of tax season. Although this is a time many of us dread, there are some things you can do to make it more manageable. Consider the following suggestions to better prepare yourself.

Start a filing system.

Start searching for receipts and important documents now. Consider labeling and placing these items in separate folders (child care, medical, small business, etc.) so you can easily access them when you start working on your tax return. You may also want to consider creating a checklist of the documents (W-2, 1099, retirement withdrawals, etc.) you expect to receive from your employer or financial institution.

Avoid simple errors that can result in a tax bill.

Failure to understand basic concepts, such as deductions, credits and filing status, could lead to costly errors that may result in an inaccurate refund or even a tax bill. Consider speaking with a Volunteer Income Tax Assistance (VITA) specialist at your local branch or visit the Internal Revenue Service (IRS) website www.irs.gov for assistance with tax terminology.

Consider tax preparation software or services.

There are numerous software options, so begin looking into them now. Many have free trials so you can go ahead and see what works best for you. LGFCU members who purchase TurboTax® through MemberConnect receive a 15 percent discount.

If you prefer a tax filing service, check out VITA. If your household income is $49,000 or less, you can have your basic taxes prepared and filed for free at your local branch beginning January 20. If your household income is above the $49,000 limit, this filing costs just $75. This year, VITA specialists can even help members with health savings accounts (HSAs) claim qualified contributions and distributions.

To overcome tax-filing anxieties, plan ahead, follow the above suggestions, and as always, give us a call at 877.367.5428 to get the help you need.