Tips for Successful Tax Returns Filing
The tax season is upon us! The IRS began accepting tax returns on Monday, January 29. Here are some helpful tips for filing your tax return.
Gather all your tax documents
Before you file your taxes, you'll need to collect all your 2017 tax documents. If you are an employee, that means your W-2; if you are a freelancer, you may have multiple 1099 forms. In some cases, you may have other statements, such as income earned from an interest-bearing savings account or interest paid on a loan, or even taxable bitcoin gains.
The IRS recommends e-filing and choosing direct deposit
The IRS says the fastest way to get your tax refund is the method already used by most taxpayers: filing electronically and selecting direct deposit as the method for receiving your refund.
The deadline to file your tax return is April 17
This year, April 15 falls on a Sunday and Washington, DC celebrates Emancipation Day on April 16 so the deadline to file your taxes falls on Tuesday, April 17.
To protect against tax fraud, file your tax return at your earliest
Tax season presents plenty of opportunity for would-be identity thieves. A stolen Social Security number can be used to file a fraudulent tax return and refund request, but it is not the only tax scam out there. The IRS keeps track of the most common tax-related crimes, and the list is long and varied.
The best way to protect against tax scams—especially potential identity theft—is to file your tax return as soon as possible.
The US Department of Justice says the IRS never discusses personal tax issues through unsolicited emails or texts, or over social media. Be wary if you are contacted by someone claiming to be from the IRS who says you owe money. When the IRS needs to get in touch with a taxpayer, standard practice is to send a letter via the US Postal Service. If you receive an unexpected and suspicious email from the IRS, forward it to phishing@irs.gov.
You can file your taxes for free if you know where to look
Many online tax services offer to file your federal taxes—and sometimes state taxes—for free if your income was less than $66,000 in 2017. You can check your options using the IRS Free File lookup.
You can also download the IRS2Go app to find free tax-filing assistance, check your refund status, or make a payment.
You should receive your tax refund within 21 days of filing
Your refund should hit your bank account within three weeks of filing online, assuming you opted to receive it via direct deposit. Often, you will get your money even faster.
If you owe taxes and cannot pay when you file
If you can't afford to pay your tax bill, don't get panic and at the same time don’t ignore the situation. The IRS offers reasonable payment plans at much lower interest rates than most banks. You may even be able to settle the bill for less than you owe, called an offer in compromise, or request a deferment until you can make a payment.
Keep copies of your old tax returns for at least 3 years
You don't have to save your tax returns forever. The IRS recommends holding onto copies for at least three years — the typical length of time the IRS would look back if you happen to get audited.
Most audits cover returns filed over the past two years, but the IRS can go back further if the situation calls for it. But audits shouldn't be cause for worry for most taxpayers. Fewer than 1% of tax returns are audited by the IRS.
When you dispose of old tax returns, make sure to properly shred the documents to protect against identity theft.
Source IRS.gov
