The 2024 tax season may not begin until January, but taking steps to prepare now can save taxpayers time and money when they’re ready to file next year. With that in mind, the South Carolina Department of Revenue (SCDOR) has 10 tips to help both tax professionals and individuals be ready for the filing season:
Tips for individuals
Organize your records – Take time to gather your important documents before you start the filing process, including W-2 and 1099 forms, receipts, medical bills, and any other document that will affect your return. Put them all in one place – electronic or paper. Don’t file without these documents. (Using a year-end pay stub instead of your W-2 could slow down processing and delay your refund.) If you need a copy of your 2021 or 2022 return, remember you can now access transcripts of past SC Individual Income Tax returns using MyDORWAY (MyDORWAY.dor.sc.gov), the SCDOR’s free online tax portal. If you’re looking for transcripts of past federal returns, log in to your IRS Online Account.
Know when the IRS and SCDOR will begin accepting returns – In January, once the IRS announces the first day you can file federal returns, the SCDOR will announce the date to file state returns. If you file before we begin accepting returns, we won’t begin processing your return and refund until the season-opening date.
Review tax credits and deductions that you may be eligible to claim – If you’re eligible, tax credits and deductions can lower your tax bill or provide a tax refund. Both the Two Wage Earner Credit and the Earned Income Tax Credit (EITC) are increasing for tax year 2023. The dependent exemption and the deduction for those under age 6 have also increased.
Choose the online filing method that’s right for you – It’s faster, easier, and more secure than filing a paper return. Plus, if you file electronically, your filing provider keeps a record of your state and federal returns. Options will be available at dor.sc.gov/iit-filing.
Get to know MyDORWAY – Our free online tax portal is the fastest, easiest way to make a payment. If you don’t have a MyDORWAY account and don’t expect to make recurring payments, you can pay what you owe without logging in at dor.sc.gov/pay. If you need to make estimated payments throughout the year, we recommend signing up for a free account.
Update your address – If you have moved since filing your last return, be sure we have your correct mailing address before tax season begins, even if you will receive a direct deposit refund. Customers with a MyDORWAY account can update their address by logging in, clicking the More tab, and selecting Manage Names & Addresses. Those without a MyDORWAY account can use the SC8822I.
Tips for tax professionals
Renew your IRS-issued Preparer Tax Identification Number (PTIN) – If you plan to serve as a tax preparer in 2024, you are required to obtain your PTIN by December 31, 2023. Both renewals and new applications usually take about 15 minutes and cost $19.75. Get started at irs.gov/PTIN.
Revoke power of attorney or third-party authorization forms for taxpayers who are no longer clients – This helps safeguard taxpayer records.
Help your clients choose the SCDOR’s direct deposit refund option – The SCDOR strongly recommends that taxpayers choose to receive their Income Tax refund by direct deposit. As a tax preparer, make sure your clients have the option to choose direct deposit before you submit their returns. Remember, the debit card refund option is no longer available.
And one tip for everyone…
Visit our YouTube channel and Tax Tips articles for 24/7 assistance – Over 170,000 customers have visited dor.sc.gov/YouTube and watched one of our helpful explainer videos. We’ve created over a dozen videos just for Tax Season, most of them less than 3 minutes long, designed to help you file your return. And don’t forget about dor.sc.gov/tax-tips, where we publish helpful advice throughout the year, including guidance to help you file a final return for a deceased family member or friend.
Stay Connected!
Find more resources for the tax season at dor.sc.gov/iit. Follow the SCDOR on Facebook, Twitter, and YouTube. Subscribe to ReveNews for the latest updates, resources, and reminders.
