IRS: Merry Christmas, Prepare Now for the 2024 Tax Season

It’s not even Christmas yet but the Internal Revenue Service says now is the time to start getting ready for tax filing season.

Here’s what’s new and what to consider before filing next year.

Taxpayers and Individual Taxpayer Identification Number (ITIN) holders can now access their Online Accounts and view, approve, and electronically sign a power of attorney and tax information authorizations from their tax professional.

Now is a good time to gather 2023 tax documents

The IRS advises taxpayers to develop a record-keeping system − electronic or paper − that keeps important information in one place.

This includes year-end income documents like Forms W-2 from employers, Forms 1099 from banks or other payers, Forms 1099-K from third-party payment networks, Forms 1099-NEC for nonemployee compensation, Forms 1099-MISC for miscellaneous income or Forms 1099-INT for interest paid, as well as records documenting all digital asset transactions.

When you have all your documentation together you’re in the best position to file an accurate return and avoid processing or refund delays.

Taxpayers who bought a vehicle in 2023 should review the changes under the Inflation Reduction Act of 2022 to see if they qualify for the credits for new electric vehicles purchased in 2022 or before or the new clean vehicles purchased in 2023 or after.

If you made energy improvements to their home, tax credits are available for a portion of qualifying expenses.

The Inflation Reduction Act of 2022 expanded the credit amounts and types of qualifying expenses. To claim the credit, taxpayers need to file Form 5695, Residential Energy Credits, Part II, with their tax return.

And remember that filing electronically and choosing direct deposit is the fastest way for to get your tax refund.