It may seem like a long way off, but next year’s tax season will begin next month. Organizing and preparing now can save you time, headaches, and even money next year.
The South Carolina Department of Revenue (SCDOR) offers these tips to help individuals get ready:
• Organize your records now! Save your tax records, W-2s, 1099s, receipts, and other important documents organized in a secure place electronically or in a folder. Keeping the year’s important tax records together saves time when completing next year’s return.
• Review electronic filing and refund options. To save time, increase security, and save tax dollars, the SCDOR encourages taxpayers to file electronically and choose direct deposit. Direct deposit is the fastest refund option to process and provides you with the fastest access to your money. If you file online and choose direct deposit, you’re less likely to make errors thanks to system checks.
• Report any new information from life changes, such as a new last name, new mailing address, or new bank account number. Life changes – such as having children, getting married or divorced, or buying a home – could impact your filing status and deductions. Since state and federal tax returns are tied to Social Security numbers, notify the Social Security Administration of any new name using Form SS-5. Notify the IRS (using Form 8822) and the SCDOR (using MyDORWAY or an SC8822) of any address changes.
• Consider making additional or estimated tax payments if you believe the amount currently being withheld from your paycheck will not cover the tax due next year. To plan ahead for 2022, consider updating your W-4 with your employer to adjust your withholding and more accurately pay the amount of taxes you owe throughout the year.
• If you usually owe taxes, learn about using MyDORWAY to make payments next year. Visit dor.sc.gov/MyDORWAY to get started.
• Protect against identity theft. Do not share personal information, such as your Social Security number and bank account information, online or in social media posts.
Make sure your computer is protected with strong passwords, updated operating systems, and security software.