By Janet Currie
Special to the AFRO
Tax season is upon us—and with it comes the usual sense of dread that many experience this time of year. However, there are several steps that can be taken to mitigate these feelings of financial unease. Here are some tips for tackling your taxes like a pro this year:
Credit: Courtesy photo
Gather the right paperwork – Your tax forms should have arrived by February. If you have not received them, you will need to obtain these documents as soon as possible. W-2s show earnings and tax withholdings for full-time employees, while 1099s report freelance or contract income. You might also get forms for investment earnings, student loan interest, or tuition payments—all of which can impact your taxes. Having everything ready makes filing easier ahead of Tax Day.
Watch your deadlines – Filing early helps you avoid last-minute stress and even protects you against tax fraud. But before you submit, make sure all your documents are in order — such as forms for childcare expenses or tax credits. Otherwise, you might miss out on potential savings.
- Pro Tip: If you need extra time, you can file for an extension until October, but keep in mind that any taxes owed are still due by April 15 to avoid penalties.
Protect yourself from tax fraud – Unfortunately, tax season is a prime time for scammers trying to steal personal information and refunds. Reduce your risk by filing early, using strong passwords for online tax filing, and never sharing financial details unless you’ve verified the source. When in doubt, don’t give it out. If something feels off—like getting a tax refund notice when you haven’t filed yet—reach out to the IRS right away.
Know that assistance is available – The CASH Campaign of Maryland (Creating Assets, Savings and Hope), a nonprofit dedicated to promoting economic development for low-to-moderate income individuals and families, offers free tax preparation and filing services performed by IRS-certified volunteers. Households with incomes under $67,000 can go online or call to schedule an appointment hosted at tax sites in Baltimore and via tax partners across the state. CASH also offers online tools for those filing taxes on their own.
Tackle debt or build your emergency fund – A tax refund might feel like extra spending money but putting it toward your financial health can make a big difference. If you have high-interest debt, like credit cards, using your refund to pay it down can save you a lot in interest. If debt isn’t a major concern, consider boosting an emergency fund. An emergency fund is your financial safety net, set aside for unexpected expenses like medical bills, car repairs, or job loss. Aim to save anywhere from three months to a year’s worth of living expenses, but even a small start with your refund can provide peace of mind.
Invest in your future – Once your immediate needs are covered, think about how your refund can support your long-term goals. Consider putting some of it toward retirement savings—whether it’s adding to your 401(k) or opening an IRA. You could also put it toward a personal goal, like saving for a down payment on a house, starting a business, or even funding your dream vacation. A little planning now can turn your refund into long-term financial security.
By planning ahead and avoiding common mistakes, taxpayers can reduce stress and potentially save money. Be sure to always speak to a tax professional about your specific situation.
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