Financial Tips to Do Better

Some things you can't escape, you can't run, you can't hide, but you can prepare yourself. That's right, folks, it's tax season. Don't be scared, we'll get through this together.

Filing your taxes can feel like solving a Rubik's Cube blindfolded while a drill instructor screams in your ear. They've created a whole industry out of paying to make it go away for you.

A small mistake in your taxes can create delays in your refunds and penalties or even create an unexpected tax bill. Let's look out for those tax errors together. I want you to be able to file confidently this year.

If you know which tax mistakes to avoid - you can save yourself future trouble!

DON'T MISS YOUR DEADLINE

If you were late for a homework assignment or blamed your dog, a teacher MIGHT have given you an extension - but you can't always expect the same from the IRS.

Tax Day traditionally falls on April 15th, and if you owe taxes but don't file on time, the IRS will hit you with a "Failure to File" penalty. This fee equals 5% of your tax due minus any prepayments each month your return is past due.

START YOUR TAXES EARLY. You should have received all of your tax forms by January 31st, so set aside some time in February to file them. If you're using an accountant or tax professional, send them all your paperwork as soon as you have it.

Just think, if you file early, you might even get your refund faster!

CHECK, CHECK, CHECK AGAIN

Mistakes happen - did I misspell Hanakkuah last December? Yes. Yes, I did.

We live and we learn - but an important lesson we can both learn is to DOUBLE CHECK. Even a small mistake on your tax form can cause all kinds of unwanted trouble.

Be sure to double-check each of the following:

• Your Social Security Number is entered accurately.
• Your Tax ID is displayed correctly.
• Your name is spelled correctly (or clear and legible if you fill out physical forms).
• All other identifying information, like your address and contact info, is up-to-date and accurate.
• Verify that every box on your return matches the information on your W2 and other tax forms.
• Review your previous year's return to ensure any imported information was transferred correctly.

DO YOU WANT THAT REFUND?

If you're getting money back from filing your taxes, the best and fastest way to receive your funds is through direct deposit. If the information is incorrect or out of date, you might cause yourself to miss out or severely delay receiving your money.

To avoid these types of hassles and delays, take the time to thoroughly review your financial institution's routing number, Atlantic's routing number is 211287560, and your account number, which you can find in Digital Banking, to ensure everything is accurate before submitting your return.

RELATIONSHIP STATUS

No, you don't need to tell the IRS about your messy situationship - but you DO need to let them know if you're married and how you're filing. It determines your tax bracket, deductions, and credits.

The IRS offers five filing status options:

• Single 
• Married Filing Jointly
• Married Filing Separately
• Head of Household
• Qualifying Widow(er)

While these categories might seem straightforward, many taxpayers accidentally select the wrong one, which can lead to missed savings or unexpected tax bills. Choosing the right status can make a big difference in your tax outcome!

Don't Forget Deductions!

Nobody wants to pay more in taxes than necessary! Tax credits and deductions can reduce what you owe and potentially boost your refund amount – so it's worth taking the time to see what you may be qualified to receive.

Most tax-saving opportunities fall into these categories:

• Family & Dependents
• Income & Savings
• Homeownership
• Healthcare
• Education

To make sure you get every dollar you deserve, gather any necessary documents before filing - receipts, tax forms, or proof of eligibility. Not sure what applies to you? Talk with a licensed account or utilize the IRS Interactive Tax Assistant to check your eligibility and maximize your savings.

WHAT WILL YOU USE YOUR REFUND FOR?

Put your tax refund to work! You deserve to treat yourself with a portion of your funds – after all, you've earned it! But consider using most of your refund to help you toward your financial goals.

Consider using your refund to:

• Pay Down High-Interest Credit Card Debt
• Kickstart Your Emergency Fund
• Use It as a Down Payment on a New Car
• Boost Retirement Savings
• Cover Current or Future Education Expenses
• Upgrade Your Home
• Invest It

We're Here to Help!

Let's make tax season a little less stressful. You know what to look out for now, and by avoiding these common mistakes and double-checking, you'll set yourself up for a smoother, stress-free filing experience - and we're here to support you every step of the way.

If you want to learn more about how to strategically use your tax refund to improve your financial well-being, we're happy to help. Please stop by any of our convenient branch locations or call 800-834-0432 to schedule an appointment today. Happy filing!

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The Atlantic blog strives to deliver informative, relevant, and sometimes fun financial information. If you enjoyed this article, please forward it to a friend.

Each individual’s financial situation is unique and readers are encouraged to contact the Credit Union when seeking financial advice on the products and services discussed. This article is for educational purposes only; the authors assume no legal responsibility for the completeness or accuracy of the contents.