With this year's tax filing deadline just around the corner, it's time to get your ducks in a row. Every Monday WCCO Radio's Ari Bergeron will share a tax tip as you get set for filing in April.
By now you should have received all your tax information. CPA Janet Weivoda at Weivoda Financial Ltd. says it's important to come prepared.
"Know what your information is. Do you have W-2's? Do you have interest or dividend documents that you need to have? Not very many people are itemizing deductions right now in our current era of taxes, but people can benefit from their charitable donations," Weivoda says. "If you have a newer mortgage, you should definitely be looking at itemizing. But the standard deductions are very high now and so not as many people are itemizing."
Weivoda says mileage cannot be deducted.
"Instead that's something you should discuss with your employer," she adds.
For couples who file jointly the standard deduction increased to $27,700 in 2023, up $1,800 from tax year 2022. Single taxpayers and married people filing separately will see their the standard deduction rise to $13,850, up $900, and for heads of households, the standard deduction will be $20,800, up $1,400.
Wait to file until you have your tax records including:
Forms W-2 from your employer(s)
Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, pension, annuity or retirement plan distributions
Form 1099-K, 1099-MISC, W-2 or other income statement if you worked in the gig economy
Form 1099-INT if you were paid interest
Other income documents and records of digital asset transactions
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
IRS or other agency letters
CP01A Notice with your new Identity Protection PIN
Notify the IRS if your address changes and notify the Social Security Administration of a legal name change. Remember, most income is taxable.
This includes:
unemployment income,
interest received,
income from the gig economy, and
digital assets.
Next Monday we'll discuss itemizing more in-depth.