With tax season comes stress for many people, but knowledge and preparation can simplify the process.
Dr. Kerri Tassin, income tax expert at Missouri State University, highlights how taxpayers can make the most of their returns and ensure a smooth filing process.
Tassin is also an associate professor in the School of Accountancy.
Be aware of increased standard deduction
“If you think it may be a good idea this year to deduct itemized deductions, such as mortgage interest, real and personal property taxes and charitable contributions, remember to first check the amount of the 2024 standard deduction for your filing status,” Tassin said.
- Married couples filing jointly: $29,200
- Single taxpayers and married filing separately: $14,600
- Head of household: $21,900
Since the standard deduction is indexed for inflation each year, do compare your eligible itemized deductions against these amounts before deciding which method to use.
Take advantage of home energy credits
If you made energy-efficient upgrades to your home in 2024, you may qualify for these valuable tax credits:
- Energy efficient home improvement credit: Homeowners who installed qualifying improvements, such as exterior doors, windows, insulation, central air conditioners or heat pumps may claim a credit of 30% of qualifying expenses, up to $1,200. There is no lifetime limit for this credit, but specific requirements must be met.
- Residential clean energy credit: If you installed solar panels, fuel cells or solar water heaters, you may be eligible for a 30% credit on qualifying expenses with no annual or lifetime limit.
Choose electronic filing and direct deposit
If possible, file your tax return electronically as this ensures you receive confirmation it has been accepted by the IRS and state tax authorities.
“It also reduces the likelihood of processing errors that can occur with paper returns, leading to a smoother and faster filing experience,” Tassin said.
Choosing direct deposit results in quicker refunds by speeding up the process and reducing the risk of lost or stolen checks. Additionally, taxpayers can track their refund status using the IRS “Where’s My Refund” tool at irs.gov.
Check if you qualify for free income tax preparation
Qualifying taxpayers may take advantage of free tax preparation software or tax preparation assistance. Taxpayers with gross income of $84,000 or less may qualify to use Free File. Free assistance is also available for members of the military or military veterans.
Those who earned $67,000 or less and those over the age of 60 may qualify for free assistance at a Volunteer Income Tax Assistance clinic and the Tax Counseling for the Elderly programs, respectively.
Consider a tax professional
Taxpayers might hire a tax professional when they have complex financial situations. These include owning a business, dealing with investments, handling multiple income sources or navigating major life changes like marriage or inheritance.
A tax expert can help maximize deductions, ensure compliance with tax laws and reduce the risk of errors or audits.
Tassin has two key pieces of advice when choosing a tax professional.
“Avoid preparers who make claims regarding large refunds or the ability to keep you from paying any taxes. Also, avoid preparers who base their fees on these types of claims.”