Fear Not, Be Prepared:
Conquer Tax Season with Ease

March 11, 2024

Tax season: a phrase that strikes dread into the hearts of even the most organized individuals. On average, people spend 13 hours filing their taxes. With a little preparation and some helpful tips, you can navigate this yearly process with confidence. Here's our guide to help you have a smooth and stress-free tax season:

Gather Your Arsenal:

• Know your filing status: Single, married, head of household – understanding your status impacts your deductions and tax rate. Some taxpayers choose the wrong filing status. Ensure your information is accurate. Make sure social security numbers and names are spelled correctly. The Interactive Tax Assistant on IRS.gov can help taxpayers choose the correct status especially if more than one filing status applies.
• Round up the troops: W-2s, 1099s, mileage logs, charitable donation receipts – collect every document that might influence your taxes.
• Stay sharp: Brush up on any changes to tax laws or deductions for your specific situation. For 2024, the standard tax deduction for single filers has been raised to $14,600, a $750 increase from 2023. For those married and filing jointly, the standard deduction has been raised to $29,200, up $1,500 from the previous year. The IRS website is your go-to resource for the latest information.

Strategize for Victory:

• Consider your options: Filing taxes can seem overwhelming, but you don’t have to go it alone. Consider free online filing options, tax preparation software, or the expertise of a tax professional.
• Maximize your deductions: Research eligible deductions and credits, like student loan interest or childcare expenses (certain limitations may apply).
• Plan for potential outcomes: Will you owe taxes? Set aside funds to avoid surprises. Expecting a refund? Decide how you’ll use it wisely. The IRS strongly recommends that if you are expecting a refund to choose direct deposit, a method supported by Ridgewood Savings Bank, which offers a host of savings products including IRAs, Money Markets and CDs.

Pro Gamer Moves:

• Stay organized: Use folders and spreadsheets, to keep your documents categorized and accessible.
• File electronically: It’s faster, more secure, and saves you the paper chase. Plus, filing an electronic tax return (e-file) has a much lower error rate compared to paper forms. To find out more, visit IRS Free File.
• Opt-in for direct deposit: Get your money quickly and avoid the risk of lost checks. Authorize an electronic transfer and receive your tax refund in your Ridgewood Checking or Savings Account without hassle or delay. In order to set up direct deposit, use Ridgewood’s routing number 226071033.

Bonus Round:

• Start early: Don’t wait until the last minute. Begin gathering documents and familiarizing yourself with the process well in advance.
• Ask for help: Don’t be afraid to reach out to a tax professional if you have complex questions or need personalized advice.
• Remember, knowledge is power. By staying informed, organized, and proactive, you can transform tax season from a fearsome foe into a manageable task. So, take a deep breath, equip yourself with these tips, and conquer tax season like the champion you are!

This guide is provided for informational purposes only and is not tax advice. The information is subject to change and may not be applicable to your personal situation. Please consult a tax advisor as appropriate. Member FDIC.