Tips for tax season

It’s that time of year – tax season is here. The Internal Revenue Service (IRS) has begun accepting and processing 2023 federal income tax returns.

Here are some tips on how you can save money and avoid problems during this year’s tax season.

Be on the lookout for tax scams. If you got an email or text message about a tax refund, it’s a scam. The message may look legit, but scammers are trying to trick you into clicking on a link so they can steal your identity or put malware on your phone or computer. The IRS will never contact you by email, text message or social media to get your personal or financial information.

Choose carefully how to prepare and file your taxes. You can either file your taxes on your own, or you can hire a professional. If you are using a computer program to prepare your return, make sure that your computer has up-to-date security. If you plan to hire a tax preparer, consider factors such as the preparer’s professional background and the likelihood that the preparer will be around to help you answer questions the IRS may ask after your return has been filed. 

Avoid “instant refunds” and “quick cash” refund offers. If you use a paid preparer to do your taxes, they may offer you a refund advance loan or a refund anticipation check. These companies may get you a portion of your refund faster, but you will have to pay a fee – which greatly reduces the amount you get of your refund. Be cautious if they ask you to deposit your refund into any bank account other than your own, as it may put you at additional risk for fraud.

Direct deposit is generally the fastest and safest way to get your refund. You can have your tax refund directly deposited into up to three (3) accounts. And if you choose to have your refund directly deposited into your bank account, it can come as soon as seven to 10 days after you file.

Use your tax refund to pay down your debt and build your savings. If you’re expecting a refund, tax time is an opportunity to save for your goals and take care of urgent needs, but don’t forget to allocate some money for yourself. Consider paying down high-cost loans and other bills first, then saving a portion for a “rainy day fund” for unplanned expenses. 

Norry Bank has a variety of savings accounts and certificates of deposit (CDs) to help you achieve your short- and long-term savings goals.

For more information, call us at 888-877-6623 or visit any of our branches.