Tax Season Basics

Tax season is around the corner and we want to help prepare you with some tips and information.

Tax season is around the corner and we want to help prepare you with some tips and information.

Tax headache, noun: a pain you get, real or imagined, when doing or even thinking about your taxes.”

Okay, so “tax headaches” aren’t a recognized medical issue. However, with all the information and knowledge required to do your taxes, it can feel overwhelming to even start them. But you don’t have to go it alone.

To be clear, Putnam Bank is in no way, shape or form a tax accounting or advising firm. On the other hand, we do want to try and help our customers as much as possible when it comes to their taxes. Here are a few tax season basics you should know. We also recommend taking any further questions to your tax advisor as they are better equipped to answer more in-depth questions.

When can I start filing my taxes?

Technically, you could have filed your taxes on Jan. 1 of this year if you had all the necessary information. However, the IRS usually doesn’t start processing until the end of January, making February and March the best times to get your taxes done.

What do I need to start filing my taxes?

You need information about your wages, any money withheld for Medicare, Social Security, healthcare plans or other reasons, investment earnings, mortgage information or any other documents providing information about money you earned or paid in the previous year.

How quickly can I get my refund?

  • Direct deposit– if you elect this method for your refund, it typically takes one to two weeks for the money to be transferred into your account.
  • Paper check– having a paper check mailed to you will take about a month after your taxes are processed.

Last year, the IRS got eight out of 10 tax refunds out within 21 days.

What forms do I need?

This varies from person to person. Here’s a basic overview of common tax forms:

  • 1040EZ- individuals with income less than $100,000 may qualify for this form
  • 1040A- the best place to start for most taxpayers; for anyone with income under $100,000 who can claim dependents, can use any filing status and can claim adjustments to income
  • 1040 series- the “long form” for individuals covers all possible tax situations; the best option if you’re in doubt
  • Form 1099- reports income from self-employment or freelance earnings, interest and dividends, government payments, and more.
  • Form1098- reports the amount of interest and mortgage-related expenses (like real estate taxes) paid.  Provided by your mortgage lender.

Again, please consult your tax advisor for more in-depth questions regarding your taxes. If there is any other way Putnam Bank can help you during tax season, please don’t hesitate to call or come by any of our offices.

 

Putnam Bank, Equal Housing Lender and Member FDIC