Essential Tax Strategies for Maximizing Refunds This Season

Essential Tax Strategies for Maximizing Refunds This Season

As we approach tax season, many taxpayers are eager to understand how changes in tax laws could affect their financial outcomes. With e-filing opening soon, H&R Block is preparing taxpayers with vital information regarding recent tax law adjustments and the tools they can utilize to optimize their returns.

With over 70 years of experience, H&R Block has spent decades helping Americans navigate the complexities of tax preparation. Each year, more than 20 million people trust H&R Block’s expertise to simplify the filing process and maximize their refunds. The combination of advanced technology with the personal touch of seasoned tax professionals sets H&R Block apart in the industry.

“At H&R Block, we strive to empower every individual to keep every hard-earned dollar,” said Andy Phillips, who's integral to The Tax Institute at H&R Block. Featuring an elite team of tax attorneys, CPAs, and enrolled agents, The Tax Institute is continuously analyzing tax code changes to provide tailored solutions for unique tax situations created by life events or legislative updates.

What to Anticipate for the Current Tax Season

As taxpayers gear up for this year's filing, here are the top five crucial updates they should keep in mind:

• 1099-K Updates: The threshold for third-party payment reporting has significantly dropped from $20,000 to $5,000, which may impact casual sellers and gig economy workers.
• 1099-DA for Digital Assets: For those engaging in trading or exchanging digital assets, detailed transaction records are essential. Starting next year, trading platforms will report these activities using the new Form 1099-DA.
• Child Tax Credit: The maximum additional Child Tax Credit has risen to $1,700 for each qualifying child.
• Clean Vehicle Tax Credit: New regulations necessitate filing Form 8936 for individuals obtaining electric vehicles, whether new or used, and transferring credits to the dealer.
• Natural Disaster Relief: Taxpayers who have seen losses from natural disasters may be eligible for specific relief provisions, even if they were not covered by insurance.

“In today’s financial landscape, securing every available dollar is increasingly crucial. H&R Block’s vast experience places us in a unique position to assist clients in navigating complex tax codes and maximizing their returns,” Curtis Campbell, President of Global Consumer Tax and Chief Product Officer at H&R Block, remarked.

Many taxpayers are unaware that they miss out on various tax benefits each year, which leads to the loss of billions in refunds. H&R Block offers a complimentary Second Look tax review service, allowing individuals to meticulously analyze up to three years of previous tax returns for any credits or deductions they may have overlooked. Commonly missed benefits include education credits and earned income tax credits.

Expanded Access to Tax Filing Options

For many Americans, tax filing represents one of the most significant financial moments of the year, often accompanied by anxiety. H&R Block is committed to easing this burden by providing a variety of filing options, all designed to support individuals seamlessly through the process.

• Assisted Filing: Clients can file their taxes efficiently—sometimes in less than an hour—by meeting with one of the 60,000 available tax professionals either virtually or in person at one of the 9,000 locations nationwide.
• DIY Online: For those who prefer a do-it-yourself approach, H&R Block's online tools come equipped with AI-driven assistance and proactive support from tax professionals.
• DIY Software: The award-winning desktop software, trusted by millions, has proven effective and straightforward to use over the past twenty years.

Unsure about which filing method is best suited? H&R Block helps clients determine the most effective approach through its innovative Help Me Choose tool, which provides personalized recommendations based on individual needs.

Integrating Technology for a Stress-Free Filing Experience

The year-round MyBlock app is an additional resource, making tax management more efficient. Users can securely store documents, initiate returns, interact with tax professionals, schedule appointments, and keep track of refunds—all from their mobile or desktop devices.

For taxpayers who want to manage their own returns, H&R Block provides several DIY options, including free federal filing for uncomplicated returns. In the previous year, about 50% of DIY clients lodged their returns at no cost using H&R Block’s services.

• Free: This option is perfect for simple tax situations and includes unemployment income and earned income credits without additional costs.
• Deluxe: Ideal for those with itemized deductions and homeowners.
• Premium: Targeted at individuals facing more complex situations such as cryptocurrency transactions or rental property income.
• Self-Employed: Specifically designed for freelancers and gig workers, this option aids in tracking business expenses and calculating self-employment taxes.

H&R Block has made it increasingly straightforward to begin filing with their easy onboarding system, plus dynamic product selectors to guide users through their options.

Expert Support Every Step of the Way

Tax filers opting for Deluxe, Premium, or Self-Employed editions can take advantage of H&R Block’s AI-driven tax assistance and professional support at no additional cost. AI Tax Assist is available 24/7 for tax help, allowing users to obtain instant answers while working on their filings. Additionally, the support team is available seven days a week during tax season for direct assistance.

Understanding complexities in life—like marriage, home purchases, or investment fluctuations—can make tax return filing challenging. Adding Tax Pro Review to your package guarantees expert oversight, helping you to identify all eligible deductions and avoid errors.

H&R Block stands by its commitment to providing accurate returns, customer satisfaction, and maximum refunds, regardless of whether clients file through a tax pro, online, or using downloadable software. With a focus on client-centric solutions, the company continues to enhance its offerings, ensuring clients feel supported throughout their tax preparation journey.

Frequently Asked Questions

What is the significance of the changes made to Form 1099-K?

The decrease in the reporting threshold to $5,000 for Form 1099-K is crucial for casual sellers, as it means more individuals will need to report their online sales income.

How can H&R Block assist first-time filers?

First-time filers can choose from several filing options, including assisted filing or online support, tailored to guide them through the process comfortably.

Is it possible to file taxes for free using H&R Block?

Yes, H&R Block offers free filing options for simple tax returns, which many clients utilized last year.

What resources does H&R Block provide for disaster relief?

H&R Block helps taxpayers identify potential relief provisions available to them if they’ve experienced disaster-related losses.

How does H&R Block ensure accuracy in tax filing?

H&R Block guarantees a 100% accuracy promise, along with audit support and thorough checks for eligible deductions and credits to ensure peace of mind for filers.

Contact Information for H&R Block

For more information or assistance, media representatives can reach out to:

Media Relations: Shayla Wilkinson, (816) 718-1448, shayla.wilkinson@hrblock.com

Media Desk: mediadesk@hrblock.com

Investor Relations: Jordyn Eskijian, (816) 854-5674, jordyn.eskijian@hrblock.com

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