Considerations After Filing Your Tax Return

Posted on Friday, April 19, 2024

Now that your 2023 tax return has been filed,it is a great time to review your tax situation over the past 12 months.

Check Your Refund Status.The IRS offers an online service where you can track the status of your refund. Click here to track your refund. You'll need to provide your Social Security number or Individual Taxpayer Identification Number, your filing status, and the exact amount of the refund you are expecting.
Retaining Tax Records. It’s important to keep your tax records for the duration that the IRS can conduct audits or impose additional taxes. Typically, this period is three years following the filing of your return. If you’ve understated your gross income by more than 25%, the period extends to six years. Always keep your actual tax returns indefinitely to demonstrate your compliance with filing requirements. Records for retirement accounts should be retained until all funds have been withdrawn and reported, plus three to six additional years. For real estate or investment records, maintain these for the duration of ownership plus at least three years after reporting the sale on your tax return.
Filing an Amended Return. If you need to correct your return after discovering unreported items, you can file an amended return using Form 1040-X. Generally, you have three years from the date you filed the original return or two years from when the tax was paid, whichever is later, to file an amended return. For 2023 tax returns filed by April 15, 2024, you can typically file an amendment until April 15, 2027. There are exceptions for specific scenarios, such as bad debts, where you might have up to seven years from the due date of the original tax return.
Plan for Next Year: Use this year’s return as a baseline to plan for next year. Adjust your withholdings and quarterly payments if necessary to avoid underpaying or overpaying your taxes.
Respond to IRS Notices: If you receive any notices from the IRS, respond promptly. These notices could be about discrepancies, additional documentation needed, or further information regarding your return.
Review Your Financial Situation: Reflect on any changes in your life such as marriage, divorce, having a child, or changing jobs, and understand how these will impact your tax situation in the coming year.
Schedule A Tax Planning Consultation: If your financial situation is complex, or if you're unsure about your tax obligations, consulting with a DWD professional can be beneficial. We can offer guidance tailored to your specific circumstances and help you plan effectively for future years.

By keeping these considerations in mind, you can better manage your post-filing responsibilities and prepare more effectively for future tax obligations.

Posted in Tax Topics For Individuals

Disclaimer: The information contained in Dulin, Ward & DeWald’s blog is provided for general educational purposes only and should not be construed as financial or legal advice on any subject matter. Before taking any action based on this information, we strongly encourage you to consult competent legal, accounting or other professional advice about your specific situation. Questions on blog posts may be submitted to your DWD representative.