Tax Season Q&A: Tips, Tricks, and Resources for a Stress-Free Filing

Tax season can be overwhelming, but with the right information and preparation, it doesn’t have to be stressful. At Madison Credit Union, we want to help our members navigate tax season with confidence. Below are some frequently asked questions, helpful tips, and resources to make filing your taxes easier this year.

Q: When is the tax filing deadline?

A: The standard deadline for filing federal taxes is April 15. This year it falls on a Tuesday, however, in other years, if the 15th falls on a weekend or holiday, the deadline may be extended to the next business day.

Q: Should I file my taxes early?

A: Yes! Filing early can help you get your refund sooner, reduce the risk of tax-related identity theft, and give you extra time to address any unexpected issues with your return.

Q: What documents do I need to file my taxes?

A: Here are some common documents you may need:

• W-2 forms from your employer
• 1099 forms (for freelance work, investments, or other income sources)
• Mortgage interest statements (1098)
• Student loan interest statements
• Charitable donation receipts
• Records of medical expenses, business expenses, or childcare costs

Q: What are some common tax deductions and credits?

A: Tax deductions lower your taxable income, while tax credits reduce the amount of tax you owe. Here are a few common ones:

• Standard Deduction – Available to all taxpayers, the amount varies by filing status.
• Earned Income Tax Credit (EITC) – A refundable credit for low- to moderate-income earners.
• Child Tax Credit – Provides tax relief for families with dependent children.
• Student Loan Interest Deduction – Allows you to deduct interest paid on student loans.
• Home Mortgage Interest Deduction – Reduces taxable income for homeowners paying mortgage interest.
• Home Energy Tax Credits – A credit for those with electric vehicles, home energy efficiency improvements, etc.
• See which ones you qualify for: https://www.irs.gov/credits-and-deductions

Q: What’s the fastest way to get my tax refund?

A: Opt for direct deposit when filing your return. The IRS typically issues refunds within 21 days if filed electronically and without errors. Paper returns take longer to process.

Q: Can I file my taxes for free?

A: Yes! There are several free filing options:

• IRS Free File – If your income is below a certain threshold, you can use IRS-approved tax software for free.
• Volunteer Income Tax Assistance (VITA) – Offers free tax help for eligible individuals.
• AARP Tax-Aide – Provides free tax prep for people 50+ and those with low-to-moderate income.

Q: How can I avoid tax scams?

A: Be cautious of phone calls, emails, or texts claiming to be from the IRS. The IRS never demands immediate payment or requests personal information via email. If you receive a suspicious message, report it to the IRS at irs.gov.

Q: Should I file my taxes myself or use a professional?

A: It depends on your situation. If you have a simple return with only W-2 income, no major deductions, and feel comfortable using tax software, filing yourself can save you money. Tax software is getting smarter and more efficient, so even if you have dependents or a mortgage, the software can help guide you through all of the steps.

However, if you own a business, have rental properties, investments, or complex deductions, a professional can help maximize your return and ensure accuracy. If you’re unsure, consulting with a tax professional can provide peace of mind.

Q: How does my side job affect my taxes?

A: Income from a side job, freelance work, or gig economy jobs (like rideshare driving or selling online) is taxable and must be reported. You may receive a 1099 form if you earn over $600 from a single payer, but even if you don’t, you’re still responsible for reporting that income. Be aware that self-employment income may require quarterly estimated tax payments to avoid penalties. However, you may also qualify for deductions like home office expenses or mileage, which can reduce your taxable income.

Q: What if I can’t pay my taxes in full?

A: If you owe taxes but can’t pay in full, you have options:

• IRS Payment Plan – Set up a monthly installment agreement.
• Offer in Compromise – Request a lower settlement amount based on financial hardship.
• Request a Short-Term Extension – You may qualify for extra time to pay without penalties.

Local Resources:

In Madison, WI, several organizations offer free tax assistance to eligible individuals:

• Madison Public Library: Offers tax assistance at four libraries in Madison through partnerships with VITA, AARP, and Tax-Aid Volunteers. Appointments required.
• Wisconsin Department of Revenue’s Customer Service Bureau: At the WI Dept. of Revenue, you can check on your refund, ask about collections, or get free tax assistance.
• United Way at 211: Madison’s local information 211 can get be a great resource for many things, taxes included. Simply dial 211 on your phone.

Additional Resources:

• IRS Website: www.irs.gov
• Madison Credit Union Tax Documents: Visit online banking or the mobile app to view your Dividend/Interest Tax Summary

Final Tips for a Smooth Tax Season:

✔ Organize documents early to avoid last-minute stress.
✔ Double-check for errors before submitting your return.
✔ Beware of scams and file with a trusted tax preparer.
✔ Use direct deposit for a faster refund.

Tax season doesn’t have to be stressful! With the right preparation and resources, you can file your return with confidence. If you have questions about managing your refund, savings strategies, or financial planning, Madison Credit Union is here to help.