Tax season is here, so it’s time to get organized, avoid costly mistakes, and make smart financial decisions with your refund. This week’s #CreditChat with @Experian was all about preparing for tax season—from key deadlines to protecting yourself from scams and making the most of your return.
If you missed the chat, here’s your tax season game plan!
📅 1. Mark Your Calendar: Tax Deadlines Matter
Q1: What are the key deadlines to remember for the upcoming tax season?
A1: The tax deadline is April 15—no way around it! If you need more time, file an extension, but remember, you still have to pay what you owe by April 15. If you expect a refund, file early and get your money back sooner! #CreditChat
📂 2. Gather Your Tax Documents Now
Q2: What key documents should you collect before filing?
A2: Get organized so you’re not scrambling! Here’s what you’ll need:
✔️ W-2s & 1099s (income from jobs, freelance work, or investments)
✔️ Mortgage interest & property tax statements
✔️ Investment & bank statements
✔️ Receipts for deductions (charitable donations, medical expenses, business expenses)
✔️ Retirement contributions & student loan interest
✔️ Last year’s tax return
Pro Tip: Don’t forget about 1099-C forms—if you settled a debt for less than you owed, the IRS considers the forgiven amount taxable income! #CreditChat
💼 3. Understanding 1099 Forms: Who Gets One?
Q3: What is a 1099 form, and when might you receive one?
A3: A 1099 form reports income when no taxes were withheld—so it’s up to you to pay what’s owed. You might receive one if you:
✔️ Freelanced, had a side hustle, or did contract work (1099-NEC)
✔️ Earned interest from a bank or investments (1099-INT / 1099-DIV)
✔️ Took money out of a retirement account (1099-R)
✔️ Got paid through PayPal, Venmo, or other platforms (1099-K if over $600)
✔️ Settled a debt for less than you owed (1099-C)
If you get a 1099, make sure you report it on your return—the IRS already has a copy! #CreditChat
🆚 4. DIY Taxes vs. Hiring a Pro
Q4: How can you choose between DIY tax software and hiring a professional?
A4: My advice? Use a professional. Taxes aren’t the place to guess—if you have a complicated return (self-employment, investments, debt settlements), a tax pro can save you money and stress.
If your taxes are super simple (just a W-2, standard deduction), DIY tax software can get the job done. Popular options include:
✔️ TurboTax – Best for guided, step-by-step filing
✔️ H&R Block – Online or in-person help available
✔️ TaxSlayer – Budget-friendly, great for self-employed filers
✔️ FreeTaxUSA – Low-cost option with free federal filing
✔️ IRS Free File – If your income is under $79,000
Bottom line: If in doubt, get a pro. It’s worth it. #CreditChat
💰 5. Can’t Pay Your Tax Bill? Here’s What to Do
Q5: What steps should you take if you can’t pay your tax bill in full?
A5: Don’t ignore it—take action!
1️⃣ File your return on time! Avoid extra penalties.
2️⃣ Pay what you can. Interest adds up, so lower the balance ASAP.
3️⃣ Set up a payment plan. The IRS offers options online.
4️⃣ Look into an Offer in Compromise. If you can’t afford to pay, you may qualify for a lower settlement.
Ignoring taxes makes things worse—be proactive and communicate with the IRS! #CreditChat
🚨 6. Protect Yourself from Tax Scams
Q6: How can you avoid tax-related identity theft?
A6: Scammers love tax season—stay alert!
✔️ File early – The IRS only accepts one return per SSN, so beat scammers to it!
✔️ Watch out for IRS scams – The IRS never calls, emails, or texts demanding payment.
✔️ Shred old tax documents – Don’t let sensitive info fall into the wrong hands.
🔗Get ID Protection https://jeannekelly.legalshieldassociate.com/identity
✔️ Use an IRS IP PIN – Adds extra security to your return (Apply Here).
If something feels off, contact the IRS directly before taking action. #CreditChat
🔎 7. Red Flags That Could Trigger an Audit
Q7: What are some common red flags that might trigger an IRS audit?
A7: 🚨 IRS audits aren’t random! Watch out for:
🚩 Unreported income – The IRS gets copies of your W-2s & 1099s.
🚩 Large deductions that don’t match your income – Keep receipts!
🚩 Home office & business deductions – Claim only what’s legit.
🚩 High charitable donations – If it seems unrealistic, expect questions.
🚩 Cash-heavy businesses – Bartenders, hairdressers, and anyone dealing in cash should keep detailed records.
Be honest, track everything, and only claim deductions you can prove. #CreditChat
💳 8. Smart Ways to Use Your Tax Refund
Q8: If you’re getting a refund, how can you use it wisely?
A8: I know it’s exciting to get a big refund, and you might want to splurge—but before you do, think long-term.
✔️ Pay down credit card debt – Interest adds up fast!
✔️ Build your emergency fund – Aim for 3-6 months of expenses.
✔️ Invest in your future – Retirement, a course, or a side hustle.
✔️ Save for something meaningful – A planned trip or a home project.
Whatever you do, don’t waste it on impulse buys! Make it work for your financial goals. #CreditChat
💙 Wrapping Up: A Big Thank You!
A huge thank you to @Experian for hosting another valuable #CreditChat! Tax season can be overwhelming, but staying informed and prepared makes all the difference.
For more financial tips, listen to my podcast, Credit Over Coffee, and follow me on social media.
Let’s keep the momentum going! 💙💳 #CreditChat
