Tax season is officially underway and the Internal Revenue Service expects to receive 150 million individual income tax returns this year.

The Austin-based Independent Bankers Association of Texas, which represents Texas community banks, offers these tax filing tips:

 

Get Organized 

The first step to filing your taxes is to gather necessary forms you should receive in the mail by early February. This will include a W-2 from each workplace, as well as a variety of other forms, which could include interest and earning statements. Gather records of deductible expenses you’ve been collecting throughout the year.

 

Take Advantage of the Free File Program

The IRS offers the Free File program at IRS.gov, which provides two options. There is software available from 14 software companies to individuals and families with incomes of less than $60,000. Online fillable forms, which are electronic versions of IRS paper forms, available to taxpayers of all income levels who complete their own returns.  

 

Tax Refund Loans Aren’t Worth It

While many tax preparers offer tax refund loans or other refund programs, you won’t get your refund much quicker. These providers skim a percentage of your return off the top for the convenience of getting your refund a few days sooner. The IRS expects to issue more than 90 percent of refunds within 21 days. To ensure the expediency of your tax refund, electronically file your refund and choose direct deposit. Paper returns take a minimum of seven weeks for refunds to be issued. 

 

Don’t Leave Money on the Table

Taxpayers often overlook deductions, which is the equivalent of giving away money. While many people know about the child and dependent care credit that can be claimed, there are several others. They include charitable contributions paid through payroll deductions when employees retain pay stubs as proof; job search expenses allow deductions for costs such as travel and resume printing; and earned income tax credit for families with lower incomes.

 

Remember the Affordable Care Act

Under the Affordable Care Act, individuals and families will face fines of $95 per person and $47.50 per child, or 1 percent of income — whichever is higher — if they did not have health insurance in 2014. The fine will increase each year. The majority of taxpayers will need to check a box to verify they had health insurance. 

 

Don’t Be Scammed

Scam artists and unethical tax preparers come out in droves during tax season. The IRS will never email you to ask for confidential financial information so be aware this is a scheme. Also beware of tax preparers who earn commission based on the size of your refund. This is incentive to inaccurately fill out forms, which puts you at risk with the IRS. When looking for a tax preparer, always ensure this person guarantees to pay penalties resulting from filing errors. 

 

Filing an Extension

If you’re not prepared to file your tax return by April 15, file for an extension. If you expect to receive a return, it is important to be thorough in your documentation. If you need more time, the IRS will give you until Oct. 15 to finish filing if you complete the 4868 form by April 15. You will be required to pay any taxes owed by this date.