Navigating The 2024 Tax Season By Following These Few Steps

Filing taxes is quite a burden to many people, and the entire process can be tedious and overwhelming. Hence, a person needs to be clear about the laws and regulations of the tax authorities. However, it can be quite troublesome for some individuals to maintain the current compliance standards.

Hence, in this tax season, one needs to follow the following steps, which can provide greater confidence and ease to individuals. In some cases, an individual can look for a California individual tax return from their home location, and that helps a person totally outsource the tax filing process and avoid the process of going through minute details.

In this blog, we will look into some of the most important aspects of the tax filing process and how one individual can get over it in this tax season.

Filing Tax For the First Time? Observe This!

It’s quite intimidating when a person is filing taxes for the first time, and therefore, they need to follow the given steps to ensure a smooth and correct filing process.

• One must collect the W-2 form from their employer, and this form reports the person’s annual wage.
• One must collect all the tax documents and put all their income in them, and based on that, one can file their taxes.
• One can either choose a tax attorney for IRS problems or a CPA if one wants to report the income accordingly. The other option is to go for free tax software, depending on the complexities of the documents.
• Reporting all the income in the initial years is a good practice, especially if you are not getting any professional help.
• If you can find any option where you can claim a tax deduction or credits, you can get that, and that reduces the total tax amount.
• Finally, one can then file the return, and it’s a good practice to opt for direct deposit to get a quick refund in case of any.

Choosing Between Tax Preparation Software or Getting a CPA

If your tax file is a little complex, then the easier and hassle-free option is to go through the CPA route, as they are the experts, and they can also advise their clients about savings and investment options in case of any need.

If there are some complications from the earlier, then one can also consult with an attorney for IRS problems, and through their help, the problem can be resolved. The last option is to opt for tax software, which allows one to file taxes by themselves.

Understanding Taxable Income and Deductions

Now, while filing taxes, it’s important to apply for tax credits and deductions to reduce the total taxable income.

1. Maximizing Deductions and Credits

There are multiple options for getting a tax credit, and one can do that by applying for a Child Tax Credit (CTC), Earned Income Tax Credit (EITC), and many more, which are necessary for reducing the tax burden legally.

2. Reporting Digital Assets  

It is also necessary these days to report all the income from digital assets, and in this case, one also needs to report the crypto income that has been made in a year. For that, one can consult with a crypto accounting firm, and through their help, a person can report that effectively. These are the processes that one can follow and needs to look after while you are going through the process of filing taxes this year.