Tax Day (April 15) is right around the corner. For many of us, organizing documents can be stressful and filing costly. This year, get ahead by finding assistance and resources to make this tax season less taxing.

Deductions in the Details

Did you buy a sustainable vehicle or improve your home energy efficiency in 2023? If so, you could be eligible for substantial tax credits. That U.S.-made electric vehicle could be worth a $7,500 deduction!

If you have dependent children, look in to the 2023 Earned Income Tax Credit, which is projected to save 23 million eligible U.S. families with dependent kids approximately $2,541 each.

View the IRS Credits and Deductions page for details.

Reduce Stress

Dealing with personal finances continues to be a leading cause of stress, and during tax season it takes center stage. Here are a few tips to help manage the tax prep process:

• Organize your documents: Deadlines are stressful – and this one is from the IRS! Gather all your documents before you file. The IRS offers steps to make filing easier, including a list of documents you may need.  
• Break it up: If you’re preparing your own taxes, don’t tackle it all at once. Instead, divide the job into manageable chunks. 

• Know your options: Free tax services are available to help with cost and preparation (see below). If needed, you can also file an extension or set up a payment plan with the IRS. Make sure to file your extension request no later than April 15.

• Think ahead: Improving your money management skills may be the trick to making tax season less stressful next year. MHealthy has compiled resources to help you understand financial basics, manage money and debt, and more.

Tax Prep Assistance

If you’re worried about the cost of preparing your taxes, resources are available to help:

• The United Way works to connect southeastern Michigan families with Volunteer Income Tax Assistance (VITA) programs through its partners, the Wayne Metro Community Action Agency and the Accounting Aid Society. These programs offer free virtual tax preparation for 2023 returns.
• The IRS offers free basic tax return preparation to qualified individuals.
• The IRS also offers IRS Free File, which uses guided prompts to lead you through online tax preparation. You file your federal and state returns through an IRS partner site or Free File Fillable Forms.  
• The Tax Counseling for the Elderly program, available to those age 60 and older, specializes in questions about pensions and retirement-related issues unique to seniors.
• The Volunteer Income Tax Assistance (VITA) program, is available to those who make $64,000 or less, who have disabilities, or who speak limited English.
• AARP Foundation Tax-Aide provides tax assistance to anyone, free of charge, with a special focus on taxpayers older than 50 with low to moderate incomes.
• Employees (of any age) making less than $64,000 can contact the University of Michigan Housing Bureau for Seniors at 734-998-9341 to schedule an appointment for free tax income tax preparation. 

Refund Rewards

Once you receive your tax refund, your next question might be what to do with it. Most experts recommend first taking care of basic needs like housing, food and utilities. If that’s taken care of, paying off debt is another option.

Don’t need your tax refund for essentials right now? Read this article from CNET outlining six ways to put your tax money to work.