February is the heart of tax season in the United States. This is when more families file their tax returns and, also, when more money is left on the table because they do not know credits and basic rules. For example, about 1 in 5 eligible people don't claim the Earned Income Credit (EITC), a benefit designed for workers with modest incomes. In addition, about 9 out of 10 taxpayers use the standard deduction, which simplifies their return, and more than 90% already file online (e-file), which speeds up refunds. Below we explain, in simple terms, how to prepare for this season and what to review before submitting.

1) Gather your key documents now

- W-2: issued by your employer; shows your salary and withheld taxes.

- 1099-NEC/1099-MISC: if you were self-employed or under contract.

- 1099-INT/1099-DIV: if you received interest or dividends from the bank or investments.

- 1099-G: if you received unemployment.

- 1095-A: if you used the Health Care Marketplace (Obamacare); without this paper you can't reconcile your premium credit.

- Business expense receipts, mileage records, estimated payments, and dependent data.

- Updated ITIN or SSN for everyone in the declaration. If your ITIN is expired, we help you renew it.

2) Submit online (e-file) and choose direct deposit

- Filing online is sending your return electronically. More than 90% of individual returns are already filed this way, and most refunds arrive in less than 21 days when you combine e-file with direct deposit (the IRS deposits your refund in your bank account).

- More than 8 out of 10 taxpayers receive their refund by direct deposit because it is faster and safer.

3) Review the most valuable family loans

- EITC (Earned Income Credit): It can greatly increase your reimbursement if you worked and your income is within certain limits. Note: To qualify, you (and your spouse if you file together) need a valid SSN; you can't claim this credit with an ITIN. Every year, about 1 in 5 eligible people don't claim it due to ignorance; don't be part of that statistic.

- Child Credit: helps families with children who meet requirements (age, kinship and cohabitation). In general, the child needs a valid SSN for the full amount. Otherwise, the “credit for other dependents” (smaller amount) may apply.

- Practical tip: Bring birth certificates or social security cards for your children and documents to prove that they lived with you (for example, a letter from the school or pediatrician with your address).

4) If you used the Health Marketplace (Obamacare), wait for Form 1095-A

- With the 1095-A we reconcile the “Premium Tax Credit” (help you pay for your health insurance). If you file without this document, the IRS may delay your refund. If you don't see it in your mailbox, download it from HealthCare.gov or your state portal.

5) Education: don't leave credits on the table

- American Opportunity Credit (undergraduate students, up to 4 years old) and Lifetime Learning Credit (courses and postgraduate programs) can lower your taxes. You can't use both for the same student in the same year. Bring Form 1098-T from the school and book/fee receipts.

6) Are you self-employed or do you have a small business?

- Separate personal and business expenses. Bring a summary of income, statements, receipts, car miles and, if applicable, estimated payments you made during the year.

- Common deductions: part of the internet and cell phone if you use them for business, supplies, mileage, and, in certain cases, home office (an exclusive space to work). We help you to calculate it well to avoid problems.

7) Protect your identity and avoid errors

- Filing early reduces the risk of someone filing a false statement with your information.

- Double-check names, dates of birth, SSN/ITIN numbers and bank accounts. Simple errors delay refunds.

- If you changed your address or bank, update it before submitting.

Why choose La Familia Multiservices?

- We specialize in taxes for working families, small business owners and new entrepreneurs. We speak your language, explain everything in a simple way and guide you step by step.

- We also support you with ITIN, accounting, creating an LLC or corporation, and more.

- Schedule your appointment today at www.lafamiliamultiservices.com to review your case and make sure you take advantage of every credit you are entitled to.

Data and references

- More than 90% of returns are filed electronically (e-file) and the IRS releases statistics for the season each year: IRS, Filing Season Statistics: https://www.irs.gov/newsroom/filing-season-statistics

- Most refunds are issued in less than 21 days with e-file and direct deposit; direct deposit is the preferred method for more than 8 out of 10 taxpayers: IRS, Refund Timing and Direct Deposit: https://www.irs.gov/refunds and https://www.irs.gov/refunds/direct-deposit

- About 1 in 5 eligible taxpayers do not claim the EITC: IRS, Earned Income Tax Credit (EITC) Awareness: https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc

- About 9 out of 10 taxpayers take the standard deduction (they don't detail expenses): Tax Policy Center, Briefing Book: Who itemizes deductions? : https://www.taxpolicycenter.org/briefing-book/who-itemizes

Call to Action

- If you want to avoid mistakes and maximize your refund this season, schedule your appointment with La Familia Multiservices at www.lafamiliamultiservices.com. We can assist you in person or virtually.

Note:

- This content is informational and is based on the most recent publicly available official sources. Tax rules may change; please confirm current requirements and dates with the IRS or in your consultation with us.

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