Source: Nichole Huff, extension specialist for family resource management  

Now is the time when we start thinking about filing our income taxes. Even though it’s an annual event, it can cause anxiety for many. By preparing now, you can ease the process for yourself or your tax preparer.   

Begin by gathering the necessary forms including your social security number and that of your spouse if filing jointly, plus the numbers of any dependents. In addition to W-2 forms, you want to include information about any taxable interest you earned from savings accounts, stocks, mutual funds and virtual currency transactions. You will need to gather other 1099 forms from any earned compensation, including unemployment compensation, pension distributions, annuity or retirement plans or contract employment.  

Additionally, have a copy of last year’s federal and state tax returns accessible, and your bank account and routing number to receive any refunds by direct deposit. Depending on your circumstances, you may need to include Form 1095-A, Health Insurance Marketplace Statement. 

One of the largest deductions many people can claim is mortgage interest. If you have a mortgage, you should have a 1098 form from your lender specifying how much interest you paid in the last year.  Mortgage interest and points paid for a 2022 home purchase in 2022 are tax deductible if you itemize. 

If you expect a refund, different factors may impact it when you receive your return. The IRS issues most refunds within 21 days, however, the IRS cautions taxpayers not to rely on receiving a refund by a certain date. Returns that require additional review can take longer, especially considering the record number of identity theft and refund fraud claims brought about by the pandemic.  

To receive your refund quickly, electronically file your taxes as early as possible and choose the direct deposit option.    

If you owe the IRS money this year, you may want to consider changing your withholding status with your employer moving forward. This will allow the employer to withhold more money from your check throughout the year, so you’re not hit with a big payment next year.   

For general information on filing taxes this year, visit https://www.irs.gov/newsroom/tax-time-guide-things-to-consider-when-filing-a-2022-tax-return.    

If you have questions about whether certain tax laws apply to your individual circumstances, consider using the IRS Interactive Tax Assistant tool at https://www.irs.gov/help/ita. This free online tool can help you determine if you need to file a tax return, your filing status, if you can claim a dependent, if your income is taxable, tax credit eligibility, or if you can deduct certain expenses.  

To get more information on family financial topics, contact Grayson County Agent for Family and Consumer Science Natalie Taul at Natalie.Taul@uky.edu.   

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