CALDWELL, Idaho — Tax season is officially here, and the April 15 deadline to file is quickly approaching as new changes take effect in Idaho.
Watch: Learn know what to look for as tax deadlines approaches
Idaho has lowered its income tax rate from 5.69% to 5.3% and increased the food tax credit. Because Idaho follows federal tax law, national changes also impact local filings. That includes higher standard deductions and new opportunities to claim things like tips, overtime, and car loan interest.
The updates have caused confusion this season, catching some tax professionals off guard.
"It was kind of a surprise because they didn't send out any notices, no, nothing. It just changed," Lisa York said.
York is a local tax preparer with Grounded Financial Services in Caldwell. She noted that missing documents are one of the biggest reasons returns get rejected.
One commonly missed form is the 1095-A, used for marketplace health insurance, which York says is a frequent reason returns get rejected. Taxpayers should also check if they have an IRS-issued Identity Protection PIN, which is required to file and can prevent returns from being processed if missing.
For those filing last minute, York says making sure everything is complete before submitting can help avoid delays or rejections.
Missing documents can cause errors that are difficult to amend on your own.
If you realize you made a mistake after filing, you can submit an amended return, but experts recommend waiting until after the April 15 tax deadline, since those filings are typically processed after standard returns.
"[For] your return, go to a tax preparer, because self-prepared amendments tend to have more mistakes in them, and it's easier to have a penalty added later," York said.
Another issue people struggle with is not tracking their income or expenses, especially self-employed workers, small business owners, and people picking up side work.
"That's kind of been the big thing that we've run into is a lot of people don't track their expenses for like, we call them gig workers. You can go ahead and do actual expenses, so your fuel costs, oil changes, tires, any maintenance that needs to be done," York said.
Self-employed workers may also need to make quarterly tax payments throughout the year to avoid penalties.
Those mistakes can lead to missed deductions or even owing more money than expected.
If you are running out of time, you can file for an extension. However, an extension does not delay what you may owe or keep you from being penalized afterward.
York also says a common misconception is that Social Security income is not taxable, but depending on your total income, a portion of it may be.
If you miss the filing deadline, you could face penalties or have the IRS estimate what you owe based on limited information, which may result in a higher bill.
Looking ahead, York recommends building better habits throughout the year including tracking income and expenses, especially for gig workers, and checking pay stubs regularly to ensure the correct amount of taxes are being withheld.
With the April 15 deadline approaching, tax professionals say staying organized, understanding new changes, and filing accurately could help you avoid penalties and even put more money back in your pocket.
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