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202501TaxReturn

Maximize Your Tax Return

Tax season doesn’t have to be overwhelming. Whether you file your taxes yourself or enlist the help of a professional, staying organized and knowing what documents to gather can make the process run smoothly. Here’s how to make tax time easier—and how your bank can help along the way.

1. Work with a Trusted Professional for Peace of Mind

Filing taxes can be complicated, and a tax professional can help ensure you don’t miss out on deductions or credits. Whether it's a CPA, tax attorney, or another qualified preparer, working with a trusted professional can streamline the process and potentially save you money.

What to do:

  • Ask for Recommendations: Ask family, friends, or a financial advisor for reliable tax professional recommendations.
  • Schedule Early: Make your appointment early in the tax season to avoid delays, and give yourself time to gather all necessary documents.
  • Stay in Touch: Regularly check in with your tax preparer to ensure you're on track and have the right paperwork ready for filing.

A professional can help you identify opportunities for tax-saving strategies such as retirement account contributions or charitable deductions. They can also offer guidance on whether you're withholding too much or too little throughout the year.

2. Get Your Documents Ready: Income and Deductions

To file your taxes accurately and maximize your refund, it’s important to gather the right documents. Start by collecting your income records, as well as any deductions or credits that can lower your tax liability.

What to do:

  • Income Information: Make sure you have your W-2s from employers, 1099 forms for investment or interest income, and any other income sources, such as rental income or Social Security benefits.
  • Deductions and Credits: Keep receipts and records for potential deductions, including:
    • Child care or dependent care costs
    • Charitable donations (cash and non-cash)s
    • Education expenses
    • Medical and dental costs
    • Business or job-related expenses

Income Adjustments to Consider:

  • Mortgage Interest & Property Taxes: These can often be deducted from your taxable income.
  • IRA Contributions: Contributing to an IRA through your bank can lower your taxable income.
  • Student Loan Interest: Payments on student loans may be deductible as well.
  • Health Savings Account (HSA): Contributions to an HSA reduce your taxable income while saving for healthcare costs.

3. Personal Information: Double-Check the Details

Ensuring that your personal details are accurate is crucial for smooth tax filing. This includes having all necessary identification numbers and banking details.

What to do:

  • Social Security Numbers (SSNs): Have the SSNs for yourself, your spouse, and dependents ready.
  • Bank Account Information: If you're expecting a refund, provide your bank’s routing number and your account number for direct deposit. You can also use your bank account for automatic tax payments or savings.

By providing accurate personal details, you’ll help ensure your return is processed quickly, and your refund is deposited directly into your account.

4. Stay Organized with Your Bank’s Tools

A key part of tax preparation is staying organized throughout the year. Your bank can help by providing access to your financial records, making it easier to track income, deductions, and expenses.

What to do:

  • Set Up Online Banking: Use your bank’s online portal to track your transactions, income, and expenses. You can access statements and categorize spending for easier tax filing.
  • Use a Dedicated Savings Account for Taxes: Consider setting up a separate savings account specifically for tax-related funds, helping you save throughout the year for any owed taxes or unexpected liabilities.
  • Direct Deposit for Quick Refunds: If you're expecting a refund, ensure that your bank account is set up for direct deposit to speed up the process.

By staying organized with your bank’s tools, you can make tax time simpler and faster.

Get Ready for Tax Season with Confidence

Whether you choose to file yourself or work with a professional, organizing your documents and understanding the deductions you're eligible for will help ensure a smooth tax season. If you need help tracking your finances or setting up accounts for tax savings, your bank is here to assist.

At Five Points Bank, we offer a variety of financial tools to help you stay organized and save for the future. Whether it’s setting up direct deposit or creating a tax savings account, we’re here to support your financial goals and help make tax season a breeze. Stop by one of our branches or visit our website to learn more about our services today!

 

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