3 Things to Do Before You File Your Tax Return
Most refund delays and amended returns are avoidable. Here's Grant's pre-filing checklist.
“What should I do before I file my tax return?”
The short version
- Pull your wage and income transcripts from your online account at IRS.gov.
- Business owners: get with your bookkeeper. You cannot file without clean books.
- Be patient if you have brokerage investments. Not all your K-1s or 1099s may be out yet.
The short answer
Before you file, do three things: pull your wage and income transcripts, get your books clean, and be patient.
1. Pull your wage and income transcripts
Log into your account at IRS.gov and pull your wage and income transcripts. One of the biggest causes of refund delays I see is people not reporting all of their income, or over-reporting the taxes they paid. Your transcripts help you catch those mistakes.
2. Get your books clean
Business owners, get with your bookkeeper. You can't file without clean books. Ideally you started that cleanup months ago, so you're ready to go in January or February.
3. Be patient
If you have brokerage investments, be patient. Not all of your K-1s and 1099s may be out yet, and corrections happen.
File early and there's a bigger chance you'll need a correction later. File an extension instead, and you have time to get everything right and file one accurate return.
Frequently asked questions
Why is my tax refund delayed?
One of the biggest reasons I see people have a delay in their refund is because they did not report all of their income, or they over-reported the total amount of taxes they paid. Pulling your wage and income transcripts can help clear up that issue.
Should I file early if I have brokerage investments?
Not all of your K-1s or 1099s may have been distributed yet, and sometimes there are corrections. Filing an extension gives you time to get all of your information accurate so you can file one return.