Keep these important tips in mind as you begin to prepare and file your taxes.
Direct Deposit is the safest and fastest way to receive a tax refund. Setting up direct deposit is not just quicker and more secure, it’s also a particularly good solution if you don’t have an address where you can reliably receive mail. If you do not have a bank or credit union account, you can explore account options that are safe, affordable, insured and can be opened remotely .
Electronic filing, including Free File is the best way to avoid pandemic-related paper delays. E-filing combined with direct deposit is the fastest way to get a refund.
Learn more and ask questions when preparing your taxes about valuable tax credits that you may be eligible to receive such as:
Remember that if you received unemployment compensation in 2020, that it is taxable. Some people may have received a Form 1099-G from the agency paying the benefit to them, but some states do not mail this form and you may need to get the electronic version from your state’s website. If you suspect identity theft involving unemployment benefits, the IRS offers guidance on this topic.
Additional ways to receive assistance for your questions from IRS including help in other languages and taxpayer advocate services.
Beware of scams! Keep in mind that the IRS doesn’t initiate contact with taxpayers by email, text messages or social media channels to request personal or financial information. Recognize the telltale signs of a scam. and learn how to know if it’s really the IRS calling or knocking on your door.
The money you get in this year’s tax refund could help cover necessities like food, bills, rent or mortgage payments. If you do have the ability to save this year, learn more about using your tax refund to start an emergency fund.
If you do choose to use a paid preparer, plan in advance.