Read five useful tax filing tips from Huntington bankers to help you navigate tax season with ease and potentially maximize your tax return.
Have you already filed your taxes? Good for you! If not, you’re in good company with the roughly one in seven Americans who wait until the last minute (or at least the last week). For stress-free filing, our experts offer a few savvy tips you’ll want to keep in mind as you finalize your return (or file for an extension!).
Look out for tax scams this season! The IRS will never contact you out of the blue by email, text, or social media—so if you get a weird call, email, or text claiming to be from them, hang up or delete the messages, and don't click any links. Additionally, don't provide any personal or financial information to anyone who calls you unexpectedly claiming to be from the IRS. Amber Buening, SVP of Security Outreach at Huntington Bank, says it best: “The IRS has your information, so they will not ask you for it—but a fraudster impersonating the IRS will.”
To check if a letter or other communication is legit, contact the IRS directly by calling 1-800-829-1040.
If you end up with an unexpected windfall of a tax return, planning how to use those funds can help you make the most of it, instead of letting it disappear into your everyday expenses. Depending on your personal financial goals, you might consider using your return to tackle high-interest debt, cushion your emergency fund, or make some energy-efficient home improvements that can lower your monthly bills. You can also put that money to work by investing in a Roth IRA, a high-yield savings account, or CD with a competitive interest rate. Not sure what the best use of your money is? Meeting with one of our financial advisors can provide clarity.
Donating to charitable organizations can make a positive impact on your community and your tax return. To qualify for a charitable tax deduction, the donation must be to a recognized organization; you can use the IRS’s Tax Exempt Organization Search tool to check if an organization is tax-exempt and therefore eligible. There are different rules depending upon what type of asset you gift—e.g., cash versus publicly traded stock. “It’s important to understand the limitations of contributions,” notes Jill Garvey, CPA, CFP®, Senior Wealth Strategist at Huntington Bank. “Consulting with a tax professional or financial advisory team can help you maximize your donations and impact.” Regardless, be sure to keep a detailed record of any tax-deductible donations you make throughout the year, whatever the amount.
If your tax situation is relatively simple, you might be eligible to use the IRS Free File Program. This public-private partnership between the IRS and certain tax preparation and filing software industry companies is available for taxpayers with Adjusted Gross Income (AGI) of $79,000 or less. Visit the official IRS website to see if you qualify for Free File and to find participating software providers.
Hesitant about paying for a professional tax preparer? You can absolutely file on your own if you have the time and feel comfortable filling out all the appropriate forms and performing basic calculations.
However, if you own a business, worked in multiple states, have been audited in the past, or have an otherwise complex tax situation, it might be a good idea to hire a professional to ensure all of your I’s are dotted and T’s are crossed. Just make sure to do your research when selecting a preparer. “Before you hire a professional, you should understand their education, experience, certifications and licenses,” Jill Garvey says. You can look up tax professionals and their skills, education and work background with the IRS Directory of Federal Tax Return Preparers. Once you have narrowed your list of potential professionals, “you should contact them and ask about their availability to take on new clients, costs and to discuss your unique situation,” Jill finishes. You can expect to pay a few hundred dollars for their services at minimum, but complicated tax situations will likely cost more.
The information provided in this document is intended solely for general informational purposes and is provided with the understanding that neither Huntington, its affiliates nor any other party is engaging in rendering financial, legal, technical or other professional advice or services, or endorsing any third-party product or service. Any use of this information should be done only in consultation with a qualified and licensed professional who can take into account all relevant factors and desired outcomes in the context of the facts surrounding your particular circumstances. The information in this document was developed with reasonable care and attention. However, it is possible that some of the information is incomplete, incorrect, or inapplicable to particular circumstances or conditions. NEITHER HUNTINGTON NOR ITS AFFILIATES SHALL HAVE LIABILITY FOR ANY DAMAGES, LOSSES, COSTS OR EXPENSES (DIRECT, CONSEQUENTIAL, SPECIAL, INDIRECT OR OTHERWISE) RESULTING FROM USING, RELYING ON OR ACTING UPON INFORMATION IN THIS DOCUMENT EVEN IF HUNTINGTON AND/OR ITS AFFILIATES HAVE BEEN ADVISED OF OR FORESEEN THE POSSIBILITY OF SUCH DAMAGES, LOSSES, COSTS OR EXPENSES.
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