By: Brielle Bierman, CPA, Ambassador for The Dot

“Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes.” – Benjamin Franklin, 1789

As we’ve all heard before, there are only two certainties in life: death and taxes. Both of which many people consider to be too terrifying and complex to openly discuss. I however think I can tackle at least one of these for today’s blog post. My name is Brielle Bierman and I am a Certified Public Accountant (CPA). I am here to make taxes more understandable and less intimidating. I’d like to caveat this post however by saying that I do not prepare individual tax returns myself, so anything I recommend or explain is from my education or studying for the CPA, but I am in no way an expert on this exact subject and this does not reflect my employer. For instance, I have used TurboTax for at least eight years now and I don’t plan to change. In my next blog post, “Let’s Talk Taxes: Part II”, I will focus more on and explain the mechanics of taxes. Today, I’ll focus on what to know and consider when filing your tax return this spring, like when you need to file, how do you file, and what documents do you need to file.  

So where to start? When are my taxes due? Filing deadlines!

Every year the IRS has dates or deadlines for when tax returns are due.

• 3/15: Partnership tax return deadline (Form 1065)
• 4/15: Individual tax return deadline (Form 1040)
• 4/15: Corporate tax return deadline (Form 1120)

For individuals, taxes are calculated based on the prior calendar year, this year being from 1/1/2023 – 12/31/2023, and are due the following April 15th. If the 15th happens to fall on a weekend, then the due date is extended to the next business day. But for our purposes, Monday April 15th, 2024 is the day we’re concerned about. That is the day that your tax return needs to be post marked or e-filed if using an online tax software. https://www.irs.gov/filing/individuals/when-to-file 

What if I need more time to file or haven’t received all my information yet?

Do not fret. You can request a 6-month extension on your individual tax return by filing a Form 4868. This extends your individual filing deadline to 10/15. However, it is very important to note that just because you have an extension to file your tax return, this does not mean it is an extension of time to pay your taxes. You still need to pay any owed taxes by your original due date of 4/15 to avoid any possible late penalties. Think of the late penalties like an interest payment. If you owe the IRS $1,000 on 4/15, but don’t pay it until 10/15, you will owe interest on the time that you owed money to the IRS. So, if you owe taxes this year then you would need to pay your estimated tax payment by 4/15. If you file your individual tax return between 4/15-10/15, the amount you already paid in taxes gets applied to your tax return, so it’s not like you’re paying in twice. In the Form 1040 Schedule 3 Part II Line 10, that is where you’d find the amount you already paid in estimated tax at extension time. https://www.irs.gov/pub/irs-pdf/f4868.pdf

Do not fret. You can request a 6-month extension on your individual tax return by filing a Form 4868. This extends your individual filing deadline to 10/15.

How do I file my taxes?

Some people hire a personal accountant to file their taxes for them. This takes some of the burden off you personally, but it is more expensive because you’re using an experienced professional who typically has an hourly rate. So, unless you own a business or have a complicated tax return, I personally don’t find this necessary if you’re a regular person with a W-2 and a few other tax forms. As I mentioned, I’ve been using TurboTax for years and have had no problems with it. I also know people who use H&R Block or TaxAct. Now that we’ve covered when and where to file your tax return, we should now consider the next step: gathering your documents.  

What documents do I need for my tax return?

This is an incredibly nuanced and individualized answer for every person, but I can list a few that you’d need to report on your tax return if it applies to you. First, I’d start with any tax forms you’ve received in the mail. If someone sent a form to you, there’s a good chance you need to report that on your return! If you still haven’t received everything you think you need, make sure to log into any website that you might be receiving something from. A useful question I ask myself when determining where to find my relevant tax documents is – who has my social security number?

A useful question I ask myself when determining where to find my relevant tax documents is – who has my social security number?

• My employer has my W-2 to pick up my income from my wages
• My banking institution has my Form 1099-INT to pick up interest income earned in my account
• My personal investments (like a mutual fund or Roth IRA) have my Form 1099-DIV to pick up dividend income earned on those investments
• My student loan has my Form 1098-E for interest payments made
• My home mortgage lender has my Form 1098 for mortgage interest paid
• My email from charities I made donations to throughout the year

Those are just some sources where I find my documents necessary for my tax return. Below are some common documents that are listed on the IRS’s website as well.

 Documents for income:

• Form W-2 shows your wages from employers
• Form 1099-INT from banks and brokers showing interest you received
• Form 1099-DIV for dividends and distributions paid to you
• Form 1099-K for payments from payment cards and online marketplaces
• Form 1099-G for government payments such as unemployment benefits
• Form 1099-NEC for freelance and independent contractor work in the gig economy
• Form 1099-R for retirement plan distributions or pensions or annuities
• Form SSA-1099 for Social Security benefits
• Form 1099-MISC for other miscellaneous income

Documents for credits or deductions:

• Childcare or dependent care expenses 
• Home mortgage and property tax records 
• Donations to charity 
• Health savings account or flexible spending account contributions 
• Healthcare expenses 
• Retirement contributions 
• If you’re a student or teacher, receipts for books, tuition and other education expenses

Documents from side jobs and self-employment:

• Statements from banks, payment apps, card processors or online marketplaces 
• Checks paid to you 
• Receipts and mileage logs for travel, gift and car expenses 
• Records of deductible office expenses 
• Estimated tax payments 
• Other business income and expense records 
• Find more self-employment records you should keep

https://www.irs.gov/filing/gather-your-documents

Organizing Tax Documents

I know that was a LOT to consider and read through, but I hope that directed you better in knowing what you need before starting your tax return. In my opinion, this is the hardest part! The day I decide to sit down and file my personal taxes, I go through this process of gathering all my documents first. I then log into TurboTax and answer their questions accordingly. If you opt into hiring an accountant, this is the information they will need to file your return. I would also recommend saving all these forms and documents, so that you have them each year to reference. I have a personal tax folder organized by taxable year on my personal laptop. This year whenever I received a new form, I saved it into my 2023 folder as a PDF. Again, that way when I start filing my taxes, I have all the information right where I need it. Additionally, then next year I’ll know all the documents my tax return required last year, which will be a great starting point for the current year.

If you owe more in taxes, this initially seems discouraging and frustrating. However, here’s a more optimistic way to view this: if you don’t have any penalties or late payments on your taxes due, you basically got an interest free loan from the government!

Filing Your Tax Return

Because I do not want to offer any professional advice on how to fill out your tax return, I am skipping to the best part: filing your tax return! Once you have entered in your information, you’ll discover if you owe taxes to the government (tax due) or if the government owes you money (tax refund).

• If you paid more taxes throughout the year than what you owed, you may get a refund.
• You’ll often receive a tax refund if you had more tax withheld on your income than what you ultimately owed or if you had some tax deductions or tax credits that lowered your taxable income. If you lower your taxable income, then you will lower your taxes due.
• If you owe more in taxes, this initially seems discouraging and frustrating. However, here’s a more optimistic way to view this: if you don’t have any penalties or late payments on your taxes due, you basically got an interest free loan from the government! For example, if you owe a little back in taxes due in April of 2024, the government essentially gave you an interest free loan from 2023 on income you earned months ago.  

I have always e-filed instead of paper filing my tax returns. I find this easier to track and in TurboTax I opt into direct debit so I can either pay my taxes due or receive my tax refund directly to my bank account. There’s no fee for this and it’s so easy to see when the IRS has accepted and processed my return. Last but not least, save your federal and state returns! Along with those tax documents you assembled, I make a point to save my tax returns each year. This has come in handy when I’ve wanted or needed to reference what my taxable income was in the past. https://www.irs.gov/refundshttps://www.irs.gov/payments/pay-taxes-on-time

I truly believe that women who feel financially empowered in their own lives can unlock a new quality of life and future for themselves. 

Conclusion

I hope you found at least one of these parts helpful or resourceful. If you have questions while filing your tax returns, I cannot emphasize enough the power of a Google search or looking it up on the IRS’s website. I promise you someone else has had that question before. I included some of their links along that way, but the IRS website really is helpful for anyone with a question or needing some guidance. I truly believe that women who feel financially empowered in their own lives can unlock a new quality of life and future for themselves. I know taxes and finances in general can feel overwhelming and intimidating, but I’d challenge every individual, but especially women, to familiarize yourself with your own financial situation. The first step in improving your situation is to understand where you currently stand. From there, you can take further steps to improve and become more financially literate. Maybe your first step can be gathering all your tax documents and filing your own taxes! Wherever that first step may be for you, I think anyone reading this blog is taking one step further into their finance journey. So, kudos to you for taking the time to improve yourself!

That’s all for now folks. Best wishes on 4/15 and wish me luck as I survive yet another busy tax season!