From renting spare rooms and vacation homes to car rides or using a bike…name a service and it’s probably available through the sharing economy. Taxpayers who participate in the sharing economy can find helpful resources in the IRS Sharing Economy Tax Center on IRS.gov. It helps taxpayers understand how this activity affects their taxes. It also gives these taxpayers information to help them meet their tax obligations. [Read more…]
IRS provides tips for last-minute filers; resources for extensions, payments and installment agreements
IRS provides tips for last-minute filers; resources for extensions, payments and installment agreements
WASHINGTON — As the tax-filing deadline fast approaches, the Internal Revenue Service is reminding taxpayers who have yet to file their tax returns that there are a variety of options to help them.
IRS tax help is available 24 hours a day on IRS.gov. Whether filing a tax return, requesting an extension or making a payment, the IRS website can help last-minute filers on just about everything related to taxes.
The IRS encourages taxpayers to file electronically. Doing so, whether through e-file or IRS Free File, vastly reduces tax return errors as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. Free File Fillable Forms means there is a free option for everyone.
Qualifying taxpayers can receive free tax preparation from IRS-certified volunteers who will also electronically file the return for free. The Volunteer Income Tax Assistance (VITA) program offers tax help to individuals who generally make $55,000 or less, persons with disabilities and individuals with limited English proficiency. The Tax Counseling for the Elderly (TCE) program also offers free tax help, particularly for taxpayers age 60 and older. To find the nearest VITA or TCE site, taxpayers can use the VITA and TCE locator on IRS.gov, download the IRS2GO app or call 800-906-9887.
Request extra time
Anyone who needs more time to file can get it. The easiest way to do so is through the Free File link on IRS.gov. In a matter of minutes, anyone, regardless of income, can use this free service to electronically request an extension on Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return.
Taxpayers are reminded, however, that an extension of time to file is not an extension of time to pay. To get the extension, taxpayers must estimate their tax liability on this form and pay any amount due. Tax payments are generally due by the April filing deadline, and taxpayers should pay as much as they can to avoid possible penalties and interest.
Taxpayers paying all or part of their income taxes, due by the April deadline, using IRS Direct Pay, the Electronic Federal Tax Payment System (EFTPS) or a credit or debit card will get an automatic extension of time to file. By selecting “extension” as the reason for the payment, there is no need to separately file a Form 4868. Taxpayers will also receive a confirmation number after they submit their payment. When paying with Direct Pay and EFTPS, taxpayers can sign up for email notifications.
Any payment made with an extension request will reduce or, if the balance is paid in full, eliminate interest and late-payment penalties that apply to payments made after the April tax filing deadline. The interest rate is currently 6 percent per year, compounded daily, and the late-payment penalty is normally 0.5 percent per month.
Alternatively, people can complete a paper copy of Form 4868 and mail it to the IRS. The form must be mailed and postmarked by the filing deadline. Download and print it from IRS.gov/forms.
Refunds
The safest and fastest way for taxpayers to get their refund is to have it electronically deposited into their bank or other financial account. Taxpayers can use direct deposit to deposit their refund into one, two or even three accounts. Direct deposit is much faster than waiting for a paper check to arrive in the mail.
After filing, use “Where’s My Refund?” on IRS.gov or download the IRS2Go Mobile App to track the status of a refund. It provides the most up-to-date information. It’s updated once per day, usually overnight, so checking more often will not generate new information. Calling the IRS will not yield different results from those available online, unless “Where’s My Refund?” instructs the taxpayer to do so, nor will ordering a tax transcript.
The IRS issues nine out of 10 refunds in less than 21 days.
Special instructions for paper filers
Math errors and other mistakes are common on paper tax returns, especially those prepared or filed in haste at the last minute. These tips may help paper filers:
- Fill in all requested taxpayer identification numbers, usually Social Security numbers, including for all dependents claimed on the tax return. Check only one filing status and the appropriate exemption boxes.
- When using the tax tables, be sure to use the correct row and column for the filing status claimed and taxable income amount shown.
- Sign and date the return. If filing a joint return, both spouses must sign.
- Attach all required forms and schedules.
- Mail the return to the right address. Check Where to File on IRS.gov.
Penalties and interest
By law, the IRS may assess penalties to taxpayers for both failing to file a tax return and for failing to pay taxes they owe by the deadline. Taxpayers who can’t pay all the taxes they owe can lessen penalty and interest charges by filing on time and paying what they can. That’s because the penalty for filing late is typically 10 times higher than the penalty for paying late. So be sure to file either a tax return or an extension request by the deadline.
Installment agreements
Alternatively, taxpayers can request a payment agreement by filing Form 9465, Installment Agreement Request. This form can be downloaded from IRS.gov/forms and should be mailed to the IRS along with a tax return, IRS bill or notice.Taxpayers who owe taxes can use IRS Direct Pay or any of several other electronic payment options. They are secure and taxpayers receive immediate confirmation when they submit their payment. Or, mail a check or money order payable to the “United States Treasury” along with Form 1040-V, Payment Voucher.
Owe tax?
Qualified taxpayers can choose to pay any taxes owed over time through an installment agreement. An online payment plan can be set up in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement application to set up a short-term payment plan of 120-days or less, or a monthly agreement for up to 72 months.
The late-filing penalty is generally 5 percent per month and can be as much as 25 percent of the unpaid tax, depending on how late the taxpayer files. For a tax return filed more than 60 days late, the penalty is often at least $215. In contrast, the late-payment penalty is usually just 0.5 percent of the unpaid taxes per month.
Taxpayers can get faster tax refunds with Direct Deposit
Taxpayers can get faster tax refunds with Direct Deposit
WASHINGTON — With the tax deadline nearly here, the Internal Revenue Service encourages all taxpayers to join the 80 percent of filers who choose Direct Deposit to get their tax refund faster.
Direct Deposit into a bank or other account is a secure option. It avoids the possibility of lost, stolen or undeliverable refund checks. The IRS uses the same system to deposit tax refunds that Social Security and Veterans Affairs use to deposit 98 percent of benefits into millions of accounts.
Choosing Direct Deposit is easy when electronically filing. A taxpayer – or their tax preparer – simply selects it as the refund method in their tax software and enters account and routing numbers. Paper filers should follow the instructions on their tax form. With either method, double check entries to avoid errors.
Direct Deposit also saves taxpayer money. It costs the IRS more than $1 to issue a paper refund check, but only a dime for each direct deposit.
E-file plus Direct Deposit yields fastest refunds
The IRS urges taxpayers to file electronically. While a person can choose Direct Deposit no matter how they file, e-filers will typically see their refund in fewer than 21 days.
Taxpayers can use IRS Free File or commercially available tax software to electronically file. E-filing vastly reduces tax return mistakes, as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. The tax software also reflects tax law changes, such as those from the Tax Cuts and Jobs Act, so taxpayers don’t need to know all the details to make sure they’re getting their taxes done right.
Split refunds
A taxpayer can deposit their full tax refund into one account or split the refund into two or three financial accounts, including a bank or Individual Retirement Account. Part of the refund can even be used to purchase up to $5,000 in U.S. Series I Savings Bonds.
When filing electronically, a taxpayer can split their refund by using the process outlined in the tax software. Those filing a paper return split a refund by using IRS Form 8888, Allocation of Refund (including Savings Bond Purchases).
The IRS reminds taxpayers they should only deposit tax refunds directly into accounts that are in their name, their spouse’s name or both if it’s a joint account. No more than three electronic tax refunds can be deposited into a single financial account or prepaid debit card. Taxpayers who exceed the limit will receive an IRS notice.
Tracking a tax refund
Taxpayers can track their refund using “Where’s My Refund?” It’s available on IRS.gov or by downloading the IRS2Go mobile app. “Where’s My Refund?” is updated once daily, usually overnight, so there’s no reason to check more than once per day. The “Where’s My Refund?” tool has the same status information as IRS phone staff. Taxpayers can check “Where’s My Refund?” within 24 hours after the IRS has received their e-filed return. Paper filers can check four weeks after they mailed their paper return. “Where’s My Refund?” has a tracker that displays progress through three stages: (1) Return Received, (2) Refund Approved, and (3) Refund Sent.
Other last-minute tips from IRS
Extensions. April 15, 2019, is the deadline for most to pay taxes owed and avoid penalty and interest charges. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17 to file their tax returns and pay any taxes they owe.
If a taxpayer needs more time to file, they can avoid a late-filing penalty by requesting an extension of time to file. An extension of time to file is not an extension to pay. Taxpayers can file up to six months later when they have an extension, but their tax payment is still due by the original due date.
There are several ways to get an extension:
- Use the Free File link on IRS.gov.
- File Form 4868, Application for Extension of Time To File U.S. Income Tax Return, electronically or by mail.
- Make an electronic payment and designate it as an extension payment. Taxpayers can get an automatic extension of time to file when making a full or partial payment with Direct Pay, the Electronic Federal Tax Payment System or by debit or credit card. When paying electronically, taxpayers must select Form 4868 as the payment type and choose the payment date to get the automatic extension. With this method, there’s no need to file a paper or electronic Form 4868. However, taxpayers should keep the confirmation as proof of the payment and extension. With Direct Pay and EFTPS, taxpayers can request email notifications about their payment.
Payment options. Taxpayers who owe taxes can use IRS Direct Pay or any of several other electronic payment options. They are secure and easy and taxpayers receive immediate confirmation of their payment. Or, taxpayers can mail a check or money order payable to the “United States Treasury” along with a Form 1040-V, Payment Voucher. Taxpayers who can’t pay by the tax deadline often qualify to set up a monthly payment agreement with the IRS using the Online Payment Agreement option on IRS.gov.
Paycheck Checkup. The IRS encourages taxpayers to do a Paycheck Checkup to review their tax withholding. They can use the IRS Withholding Calculator and should make any needed adjustments early in 2019. Doing a Paycheck Checkup can help taxpayers avoid having too little or too much tax withheld from their paychecks. Taxpayers can generally control the size of their refund by adjusting their tax withholding.
For 2019, a Paycheck Checkup is especially important for taxpayers who adjusted their withholdings in 2018 – specifically in the middle or later parts of the year. It’s also important for taxpayers who owed additional tax when they filed this year or those who want to adjust the size of their refund for next year. When using the calculator, it’s helpful for taxpayers to have their completed 2018 tax return available. For details see Tax withholding: How to get it right.
Beware of scams. Watch out for email schemes.Taxpayers will only receive an email from Direct Pay or EFTPS if they’ve opted in for email notifications when they use Direct Pay or EFTPS. Taxpayers who get an unsolicited email claiming to be from the IRS or an IRS-related function should report it to phishing@irs.gov.
For further help and resources, check out the IRS Services Guide.
More information:
- Frequently Asked Questions about Splitting Federal Income Tax Refunds
- Frequently Asked Questions about buying U.S. Series I Savings Bonds with your refund
- Frequently Asked Questions about Estimated Taxes for Individuals
- Frequently Asked Questions about the Withholding Calculator
- Frequently Asked Questions about Withholding Tables
Online tool lets taxpayers check the status of their refund
Online tool lets taxpayers check the status of their refund
Taxpayers filing their tax returns to meet the upcoming tax filing deadline should know that the easiest way to check on their tax refund is to use Where’s My Refund?. This tool is available on IRS.gov and through the IRS2Go app. The fastest way to get that tax refund is to use IRS e-File and direct deposit.
Taxpayers can use Where’s My Refund? to start checking on the status of their tax return within 24 hours after the IRS receives an e-filed return. For a paper return, it’s four weeks after the taxpayer mailed it.
The tool has a tracker that displays progress through three phases:
(1) Return Received
(2) Refund Approved
(3) Refund Sent
All a taxpayer needs to use “Where’s My Refund?” is their Social Security number, tax filing status and the exact amount of the refund claimed on their tax return.
“Where’s My Refund?” is updated no more than once every 24 hours, usually overnight, so there’s no need to check the status more often.
Taxpayers should only call the IRS tax help hotline on the status of their tax refund if :
- It has been 21 days or more since the tax return was e-filed
- It has been six weeks or more since the return was mailed
- When “Where’s My Refund?” tells the taxpayer to contact the IRS
Taxpayers who owe should pay as much as possible to minimize interest and penalty charges. The taxpayers should visit IRS.gov/payments to explore their payment options.
Taxpayers can zip over to IRS.gov for answers to many tax questions
Taxpayers can zip over to IRS.gov for answers to many tax questions
As taxpayers are filing their 2018 tax returns, they might have questions about their taxes. The IRS reminds taxpayers that they can quickly find most answers to these tax questions on IRS.gov. Here are some of the pages and resources on IRS.gov where people can go to find more information about tax topics.
IRS Services Guide
This guide provides an overview of the many IRS.gov tools available to taxpayers and tax professionals.
Interactive Tax Assistant
This tool provides answers to several tax law questions. It can help taxpayers determine if a type of income is taxable, if they are eligible to claim certain credits, and if they can deduct expenses on their tax return. It also provides answers for general questions, such as determining filing status and if they have to file a tax return.
Tax Topics and Frequently Asked Questions
The Tax Topics and FAQs both contain general information about a wide range of tax topics for individual and business taxpayers.
Tax Trails
This interactive tool helps people find answers to general tax questions.
IRS Tax Map
This tool helps people search and quickly find the information they need. It directs users to information including official guidance, forms, publications, frequently asked questions, and news relevant to several topics.
Publication 5307, Tax Reform: Basics for Individuals and Families
This publication provides information to help individual taxpayers understand how changes from the Tax Cuts and Jobs Act affect them.
Publication 5318, Tax Reform: What’s New for Your Business
This electronic publication covers many of the TCJA provisions that are important for small and medium-sized businesses, their owners, and tax professionals
Where’s My Refund?
Those who have already filed can use this tool to track their tax refund. Taxpayers get personalized information based on the processing of their tax return. The tool provides an actual refund date after the IRS has approved a refund.
IRS Withholding Calculator
Doing a Paycheck Checkup with the Withholding Calculator can help protect against having too little tax withheld and facing an unexpected tax bill and even a penalty. Some taxpayers might prefer to have less tax withheld up front and receive more in their paychecks.
Get Transcript
Taxpayers who need a transcript for tax preparation or for other purposes such as validating income can use Get Transcript. This tool to allows users to get a transcript online or by mail.
Account Information
Taxpayers can go to IRS.gov/account to securely access information about their federal tax account.
Visit IRS.gov for answers to 2019 tax-filing season questions
Visit IRS.gov for answers to 2019 tax-filing season questions
With major changes made by the Tax Cuts and Jobs Act, the IRS encourages business owners and self-employed individuals seeking more information on tax reform to review Publication 5318, Tax Reform What’s New for Your Business. Visit the IRS Tax Reform and Get Ready pages on IRS.gov for additional information.
Choosing e-file and direct deposit remains the fastest and safest way to file an accurate income tax return and receive a refund. “Where’s My Refund?” has the most up-to-date information available about refunds. The tool is updated once daily, so taxpayers don’t need to check more often
Where’s My Refund? tool lets taxpayers check status of their refund
Where’s My Refund? tool lets taxpayers check status of their refund
The best way for taxpayers to check the status of their refund is to use the Where’s My Refund? tool on IRS.gov. This tool gives taxpayers access to their tax return and refund status anytime. All they need is internet access and three pieces of information:
- Their Social Security number
- Their filing status
- The exact whole dollar amount of their refund
Taxpayers can start checking on the status of their return within 24 hours after the IRS received their e-filed return, or four weeks after they mail a paper return. Where’s My Refund? includes a tracker that displays progress through three stages: the IRS receives the tax return, then approves the refund, and sends the refund.
Where’s My Refund? Updates once a day, so taxpayers don’t need to check more often.
Taxpayers on the go can track their return and refund status on their mobile devices using the free IRS2Go app. Those who file an amended return should check out the Where’s My Amended Return? tool.
Generally, the IRS issues most refunds in less than 21 days, but some may take longer. IRS phone and walk-in representatives can research the status of refunds only if it’s been 21 days or more since a taxpayer filed electronically, or more than six weeks since they mailed a paper return. Taxpayers can also contact the IRS if Where’s My Refund? directs them to do so.
More information:
Understanding Tax Return Preparer Credentials and Qualifications
Tax Topic 254 – How to Choose a Tax Return Preparer
Choosing a Tax Professional
Filing for Individuals
e-File Options for Individuals
Paying Your Taxes
What to Expect for Refunds in 2019
Tax Reform: Basics for Individuals and Families
IRS kicks off 2019 tax-filing season as tax agency reopens;
IRS kicks off 2019 tax-filing season as tax agency reopens; Use IRS.gov to avoid phone delays
The Internal Revenue Service successfully opened the 2019 tax-filing season today as the agency started accepting and processing federal tax returns for tax year 2018. Despite the major tax law changes made by the Tax Cuts and Jobs Act, the IRS was able to open this year’s tax-filing season one day earlier than the 2018 tax-filing season.
More than 150 million individual tax returns for the 2018 tax year are expected to be filed, with the vast majority of those coming before the April tax deadline. Through mid-day Monday, the IRS had already received several million tax returns during the busy opening hours.
“I am extremely proud of the entire IRS workforce. The dedicated IRS employees have worked tirelessly to successfully implement the biggest tax law changes in 30 years and launch tax season for the nation,” said IRS Commissioner Chuck Rettig. “Although we face various near- and longer-term challenges, our employees are committed to doing everything we can to help taxpayers and get refunds out quickly.”
Following the government shutdown, the IRS is working to promptly resume normal operations.
“The IRS will be doing everything it can to have a smooth filing season,” Rettig said. “Taxpayers can minimize errors and speed refunds by using e-file and IRS Free File along with direct deposit.”
The IRS expects the first refunds to go out in the first week of February and many refunds to be paid by mid- to late February like previous years. The IRS reminds taxpayers to check “Where’s My Refund?” for updates. Demand on IRS phones during the early weeks of tax season is traditionally heavy, so taxpayers are encouraged to use IRS.gov to find answers before they call.
April deadline; help for taxpayers through e-file, Free File
The filing deadline to submit 2018 tax returns is Monday, April 15, 2019, for most taxpayers. Because of the Patriots’ Day holiday on April 15 in Maine and Massachusetts and the Emancipation Day holiday on April 16 in the District of Columbia, taxpayers who live in Maine or Massachusetts have until April 17 to file their returns.
With major changes made by the Tax Cuts and Jobs Act, the IRS encouraged taxpayers seeking more information on tax reform to consult two online resources: Publication 5307, Tax Reform: Basics for Individuals and Families, and Publication 5318; Tax Reform What’s New for Your Business. For other tips and resources, visit IRS.gov/taxreform or check out the Get Ready page on IRS.gov.
The IRS expects about 90 percent of returns to be filed electronically. Choosing e-file and direct deposit remains the fastest and safest way to file an accurate income tax return and receive a refund.
The IRS Free File program, available at IRS.gov, gives eligible taxpayers a dozen options for filing and preparing their tax returns using brand-name products. IRS Free File is a partnership with commercial partners offering free brand-name software to about 100 million individuals and families with incomes of $66,000 or less. About 70 percent of the nation’s taxpayers are eligible for IRS Free File. People who earned more than $66,000 may use Free File Fillable Forms, the electronic version of IRS paper forms.
Most refunds sent in less than 21 days; EITC/ACTC refunds starting Feb. 27
The IRS expects to issue more than nine out of 10 refunds in less than 21 days. However, it’s possible a tax return may require additional review and take longer. “Where’s My Refund?” has the most up to date information available about refunds. The tool is updated only once a day, so taxpayers don’t need to check more often.
The IRS also notes that refunds, by law, cannot be issued before Feb. 15 for tax returns that claim the Earned Income Tax Credit or the Additional Child Tax Credit. This applies to the entire refund — even the portion not associated with the EITC and ACTC. While the IRS will process the EITC and ACTC returns when received, these refunds cannot be issued before Feb. 15. Similar to last year, the IRS expects the earliest EITC/ACTC related refunds to actually be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2019, if they chose direct deposit and there are no other issues with the tax return.
“Where’s My Refund?” on IRS.gov and the IRS2Go mobile app remain the best way to check the status of a refund. “Where’s My Refund?” will be updated with projected deposit dates for most early EITC and ACTC refund filers on Feb. 17, so those filers will not see a refund date on “Where’s My Refund?” or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so these filers should not contact or call about refunds before the end of February.
This law was changed to give the IRS more time to detect and prevent fraud. Even with the EITC and ACTC refunds and the additional security safeguards, the IRS still expects to issue more than nine out of 10 refunds in less than 21 days. However, it’s possible a particular tax return may require additional review and a refund could take longer. Even so, taxpayers and tax return preparers should file when they’re ready. For those who usually file early in the year and are ready to file a complete and accurate return, there is no need to wait to file.
New Form 1040
Form 1040 has been redesigned for tax year 2018. The revised form consolidates Forms 1040, 1040A and 1040-EZ into one form that all individual taxpayers will use to file their 2018 federal income tax return.
The new form uses a “building block” approach that can be supplemented with additional schedules as needed. Taxpayers with straightforward tax situations will only need to file the Form 1040 with no additional schedules. People who use tax software will still follow the steps they’re familiar with from previous years. Since nearly 90 percent of taxpayers now use tax software, the IRS expects the change to Form 1040 and its schedules to be seamless for those who e-file.
Free tax help
Low- and moderate-income taxpayers can get help filing their tax returns for free. Tens of thousands of volunteers around the country can help people correctly complete their returns.
To get this help, taxpayers can visit one of the more than 12,000 community-based tax help sites that participate in the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs. To find the nearest site, use the VITA/TCE Site Locator on IRS.gov or the IRS2Go mobile app.
Filing assistance
No matter who prepares a federal tax return, by signing the return, the taxpayer becomes legally responsible for the accuracy of all information included. IRS.gov offers a number of tips about selecting a preparer and information about national tax professional groups.
The IRS urges all taxpayers to make sure they have all their year-end statements in hand before filing. This includes Forms W-2 from employers and Forms 1099 from banks and other payers. Doing so will help avoid refund delays and the need to file an amended return.
Online tools
The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax returns on IRS.gov, the official IRS website. Taxpayers can find answers to their tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide links to these and other IRS services.
Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 18 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process.
The IRS urges taxpayers to take advantage of the many tools and other resources available on IRS.gov.
The IRS continues to work with state tax agencies and the private-sector tax industry to address tax-related identity theft and refund fraud. As part of the Security Summit effort, stronger protections for taxpayers and the nation’s tax system are in effect for the 2019 tax filing season.
The new measures attack tax-related identity theft from multiple sides. Many changes will be invisible to taxpayers but will help the IRS, states and the tax industry provide additional protections, and tighter security requirements will better protect tax software accounts and personal information.
Renew ITIN to avoid refund delays
Many Individual Taxpayer Identification Numbers (ITINs) expired on Dec. 31, 2018. This includes any ITIN not used on a tax return at least once in the past three years. Also, any ITIN with middle digits of 73, 74, 75, 76, 77, 81 and 82 (Example: 9NN-73-NNNN) is now expired. ITINs that have middle digits 70, 71, 72 or 80 expired Dec. 31, 2017, but taxpayers can still renew them. Affected taxpayers should act soon to avoid refund delays and possible loss of eligibility for some key tax benefits until the ITIN is renewed. An ITIN is used by anyone who has tax-filing or payment obligations under U.S. tax law but is not eligible for a Social Security number.
It can take up to 11 weeks to process a complete and accurate ITIN renewal application. For that reason, the IRS urges anyone with an expired ITIN needing to file a tax return this tax season to submit their ITIN renewal application soon.
Sign and validate electronically filed tax returns
All taxpayers should keep a copy of their tax return. Some taxpayers using a tax filing software product for the first time may need their adjusted gross income (AGI) amount from their prior-year tax return to verify their identity.
Taxpayers using the same tax software they used last year will not need to enter their prior year information to electronically sign their 2017 tax return. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
2018 Tax Filing Season Begins Jan. 29
2018 Tax Filing Season Begins Jan. 29, Tax Returns Due April 17; Help Available for Taxpayers
The Internal Revenue Service announced today that the nation’s tax season will begin Monday, Jan. 29, 2018 and reminded taxpayers claiming certain tax credits that refunds won’t be available before late February.
The IRS will begin accepting tax returns on Jan. 29, with nearly 155 million individual tax returns expected to be filed in 2018. The nation’s tax deadline will be April 17 this year – so taxpayers will have two additional days to file beyond April 15.
Many software companies and tax professionals will be accepting tax returns before Jan. 29 and then will submit the returns when IRS systems open. Although the IRS will begin accepting both electronic and paper tax returns Jan. 29, paper returns will begin processing later in mid-February as system updates continue. The IRS strongly encourages people to file their tax returns electronically for faster refunds.
The IRS set the Jan. 29 opening date to ensure the security and readiness of key tax processing systems in advance of the opening and to assess the potential impact of tax legislation on 2017 tax returns.
The IRS reminds taxpayers that, by law, the IRS cannot issue refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) before mid-February. While the IRS will process those returns when received, it cannot issue related refunds before mid-February. The IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if they chose direct deposit and there are no other issues with the tax return.
The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are using a tax software product for the first time will need their adjusted gross income from their 2016 tax return to file electronically. Taxpayers who are using the same tax software they used last year will not need to enter prior-year information to electronically sign their 2017 tax return. Using an electronic filing PIN is no longer an option. Taxpayers can visit IRS.gov/GetReady for more tips on preparing to file their 2017 tax return.
April 17 Filing Deadline
The filing deadline to submit 2017 tax returns is Tuesday, April 17, 2018, rather than the traditional April 15 date. In 2018, April 15 falls on a Sunday, and this would usually move the filing deadline to the following Monday – April 16. However, Emancipation Day – a legal holiday in the District of Columbia – will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 17, 2018. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.
The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. The IRS and Summit partners continued to improve these safeguards to further protect taxpayers filing in 2018.
Refunds in 2018
Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS expects more than four out of five tax returns will be prepared electronically using tax software.
The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.
By law, the IRS cannot issue refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit before mid-February. This applies to the entire refund — even the portion not associated with the EITC and ACTC.
IRS expects the earliest EITC/ACTC related refunds to be available in taxpayer bank accounts or on debit cards starting on Feb. 27, 2018, if those taxpayers chose direct deposit and there are no other issues with the tax return. This additional period is due to several factors, including banking and financial systems needing time to process deposits.
After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving Presidents’ Day may affect their refund timing.
The Where’s My Refund? tool on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers in late February, so those filers will not see a refund date on Where’s My Refund? or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.
IRS Offers Help for Taxpayers
The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov, the official IRS website. Taxpayers can find answers to their tax questions and resolve tax issues online. The Let Us Help You page helps answer most tax questions, and the IRS Services Guide links to these and other IRS services.
Taxpayers can go to IRS.gov/account to securely access information about their federal tax account. They can view the amount they owe, pay online or set up an online payment agreement; access their tax records online; review the past 18 months of payment history; and view key tax return information for the current year as filed. Visit IRS.gov/secureaccess to review the required identity authentication process.
In addition, 70 percent of the nation’s taxpayers are eligible for IRS Free File. Commercial partners of the IRS offer free brand-name software to about 100 million individuals and families with incomes of $66,000 or less.
The online fillable forms provide electronic versions of IRS paper forms to all taxpayers regardless of income that can be prepared and filed by people comfortable with completing their own returns.
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free tax help to people who qualify. Go to IRS.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider. If eligible, taxpayers can also locate help from a community volunteer. Go to IRS.gov and click on the Filing tab for more information.
The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov.
Taxpayers should check out these helpful tax tools
Taxpayers should check out these helpful tax tools
Questions about taxes could come up any time of the year. Whether it’s about tracking a refund or paying a bill, taxpayers can find answers to their questions on IRS.gov. Here are some of the most popular IRS tools:
IRS Free File. Taxpayers who filed an extension can use IRS Free File to prepare and e-file a federal tax return. Free File is available at no cost for anyone with income below $66,000. Free File is available through Oct. 15 to file a 2017 tax return. IRS Free File is available through IRS.gov or the IRS2Go mobile app.
Direct Deposit. Direct Deposit is the best and fastest way for taxpayers to get their tax refund electronically deposited for free into their financial account. Combining direct deposit with electronic filing is the fastest way for a taxpayer to receive their refund.
- Where’s My Refund? Taxpayers can use “Where’s My Refund?” at IRS.gov or the IRS2Go mobile app to check the status of a refund within 24 hours after the IRS receives the e-filed return or four weeks after a mailed paper return. The IRS2Go app is free and available on Google Play, the Apple App Store or Amazon App Store.
- Paying a Tax Bill. IRS Direct Pay is free and taxpayers can pay directly from a checking or savings account. They can choose to receive email notifications about their payments each time they use Direct Pay There are five simple steps to pay in a single online session and it’s also available with the IRS2Go mobile app. Other payment options are available at IRS.gov/payments.
- Tax Account Information Online. At IRS.gov/account individual taxpayers can view their balance and payment history. They can also pay with their bank account, a debit or credit card or apply for an installment agreement. They can view, print or download tax records, and view their most current tax return information as originally filed. First time users must authenticate their identity through the Secure Access process. Taxpayers who already have a user name and password from Secure Access for their tax account, Get Transcript Online or Identity Protection PIN, may use the same username and password.
- Online Payment Agreement. Taxpayers who can’t pay their taxes in full can apply for an Online Payment Agreement. Using the Direct Debit payment plan option is a lower-cost, hassle-free way to make monthly payments.
- Interactive Tax Assistant. Taxpayers can use this tool to find answers to their tax questions. This tax law resource asks a series of questions and provides instant answers on a variety of tax topics, including general filing questions, deductions, credits and income.
- Tax Map. The IRS Tax Map integrates web links, tax forms, instructions and publications into one search result. Taxpayers can quickly find forms, publications, frequently asked questions and news by topic.