Expert says don’t rush to file your tax return

(Source: MGN)
Published: Jan. 26, 2023 at 10:10 AM EST|Updated: Jan. 26, 2023 at 10:11 AM EST
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JEFFERSONVILLE, Ind. (WAVE) - Tax season is officially underway, but that doesn’t mean you should file right when you get your W-2.

Carol Flynn owns an accounting firm and says it might be best to hold off.

“If you have everything don’t file so early that you miss something. Don’t think I’ve got my W-2′s, I don’t need anything else and then here comes some interest or something that comes from a dividend or some bank interest,” said Flynn. “Make sure you have all of your documents before you file.”

There are a few important changes to note for your 2022 return as well. Some pandemic-era tax credits are back to normal

  • Child tax credit dropped from $3,000 to $2,000
  • Dependent care credit, or babysitter credit, dropped from $8,000 to $3,000 per child
  • Automatic $300 charitable cash donation credit no longer exists

The IRS should be easier to work with this year as well. The Inflation Reduction Act gave the IRS $80 billion over the next decade to modernize its services. They’ve already used some of that money.

  • Hired 5,000 new people to answer the phones when you call
  • Updated online services
  • Hired more agents

Look out for scammers trying to get your information through text as well this year. It’s a relatively new scam called smishing.

“They’re going to send you a text saying there’s been a problem with your return. We have a problem with this. Please reply to this with your name address and social security number. Don’t do it! It’s a scam,” said Flynn.

She says the IRS works exclusively through the mail. They will never call or text you.

If someone tries to steal your information like this, go to the Treasury Inspector General for Tax Administration’s website to report them.