Tax season is upon us, and as many residents start to gather their financial documents, there are some key changes to the tax code that could impact how we file this year. According to Local 12, which tapped into the expertise of Gary Friedhoff, an adjunct instructor at the University of Cincinnati, understanding these updates is crucial to avoid ending up blindsided by the IRS. "Preparation and record-keeping still remain the best tools," Friedhoff emphasized in his discussion with Local 12, according to UC News.
It appears we're going to need to be more diligent than ever before. With the tax code evolving, taxpayers will have to adapt quickly to ensure they do not miss out on any potential benefits or deductions. Friedhoff made it clear to Local 12 that "Organized records help support deductions. Credits are critical if you're ever audited. If you can't substantiate the requirements, the credit is gone," according to UC News. Keeping track of charitable contributions, remembering car purchases, and the new shift to digital payment only are among the areas where individuals will have to heavily focus to properly navigate this year's tax filing process.
The switch to digital-only payments can represent a significant change for those accustomed to paper trails and checks. It's a part of a broader move by the IRS and other institutions to streamline operations and improve efficiency, but it comes at the cost of requiring everyone to get somewhat savvy with digital financial tools. Taxpayers will need to embrace this digital move while still ensuring they have all necessary records on hand come tax time.
As we get ready to dig into our finances, taking heed of the advice from experts like Friedhoff can be the difference between a smooth tax experience and a laborious one. He told Local 12 to always aim for meticulous record-keeping, because "Organized records help support deductions." So as we crack open those laptops or log into those tax prep services, we must be thorough and double-check that all our deductions and credits are accurately substantiated. For those interested in the full rundown of this year's big tax changes, the details are available through the University of Cincinnati's announcement.
