As the April 15 income-tax filing deadline approaches, IRS Spokesman Mark Green offers tax tips for those still working on their tax returns. “Millions of taxpayers are rushing to complete their taxes and thousands more realize they’re going to need more time. We estimate that 4.6 million Georgians will be filing tax returns this year. Thus far we have received over 2.6 million tax returns with an average refund of $2,893,” said Green. As taxpayers begin to work on finalizing their tax returns, here are some valuable free helpful tax tips to avoid the stress and help beat the rush.
1. Prepare Now: Make sure you have all the documents you need to file your tax return. Gather together your Forms W-2 (earnings statements) and 1099 (interest/dividend statements). If you own a home, you will need Form 1098 to get the amount of mortgage interest and real estate taxes you paid. If you itemize, make sure you have the receipts for all your deductions such as charitable donations and medical expenses. You will also need a Social Security number (SSN) for yourself, spouse and any dependents listed on the return. If you don’t e-file, check all math and data entries-including SSNs-to ensure they are correct and legible. Inaccurate or missing information could delay your refund.
2. *NEW this year, Individuals who bought health insurance through the Marketplace should receive Form 1095-A, Health Insurance Marketplace Statement.If you do not receive your Form 1095-A by early February or you believe it is incorrect, you should contact the Marketplace from which you received coverage. All taxpayers who are reporting coverage, claiming a health coverage exemption, making an individual shared responsibility payment, or claiming the premium tax credit should consider filing their tax return electronically. E-filing a tax return is the simplest way to file a complete and accurate tax return as it guides individuals through the process and does all the math for them.
Most taxpayers will simply check a box on their tax return to indicate that each member of their family had qualifying health coverage for the whole year. If you, your spouse and dependents had health insurance coverage all year, you will indicate this by simply checking a box on your tax return. No further action is required. For more information about the Affordable Care Act and your 2014 income tax return, visit IRS.gov/aca.
3. Register for an Identity Protection PIN (IP PIN): As part of an ongoing pilot program, all taxpayers who filed federal returns last year from Georgia, Florida or the District of Columbia are eligible for an Identity Protection PIN (IP PIN) that will help protect them from tax-related identity theft. Eligibility for this program does not mean the taxpayers are already victims of identity theft. “The main purpose of the program is to add an additional layer of protection to taxpayers who live in areas where tax-related identity theft is more prevalent,” said Green.
4. Don’t Miss Out on Unclaimed Refunds: About 36,200 Georgians who haven’t filed a tax return for 2011 are missing out on more than $31 million in unclaimed refunds. To collect these refunds a 2011 tax return must be filed with the IRS no later than April 15, 2015. Half of these unclaimed refunds would be for more than $628.
5. Avoid Waiting in long Lines:Taxpayers should always check IRS.gov for days and hours of service as well as services offered at the location they plan to visit. IRS urges taxpayers to use Direct Pay to make the payment online whenever possible. IRS.gov remains the most effective way to get IRS forms, instructions and publications. In addition, most IRS questions can be answered through the Tax Tips, FAQs, News releases and other helpful information available on the IRS website.
6. Choosing a Qualified Tax Preparer: The IRS has launched a new, online public directory of tax return preparers. This searchable directory on IRS.gov will help taxpayers find a tax professional with credentials and select qualifications to help them prepare their tax returns. “If you choose to use a paid tax preparer, it is important that you find a qualified tax professional. Taxpayers are ultimately responsible for everything on their return even when it’s prepared by someone else. This new directory will be a great resource for taxpayers who rely on the services of a paid return preparer,” said Green.
Taxpayers can also look to these tax professionals for help if they have questions about the new health care provisions on this year’s tax forms. The directory is a searchable, sortable listing featuring: the name, city, state and zip code of attorneys, CPAs, enrolled agents and those who have completed the requirements for the voluntary IRS Annual Filing Season Program. All preparers listed also have valid 2015 Preparer Tax Identification Numbers (PTIN).
7. File Electronically for Free: Even If You Owe-There’s no need to hold on to your return because you owe money. You can file electronically now and set your automatic payment for April 15th. You can e-file through a tax preparer, personal computer and tax preparation software or using the IRS Free File program. The IRS Free File program offers free tax return preparation and free e-filing to individuals with an AGI of $60,000 or less through a partnership with software companies. To Free File, go to the IRS Web site at http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free , click on Free File and select a software company that meets your needs. Remember, you must access all Free File software companies through the IRS Web site. Electronic filing has many benefits. E-filing offers faster refunds, more accurate returns, paperless filing, and confirmation within 48 hours that IRS has accepted your tax return. “We see a dramatic reduction in the number of errors with tax returns that are filed electronically,” said Green, and better yet, if you choose direct deposit, you can have your refund put placed in your bank account in as little as 21 days!.
8. More Time to File: People who haven’t finished filling out their return can get an automatic six-month extension. The fastest and easiest way to get the extra time 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 automatic tax-filing extension on Form 4868.Also, you can request an extension by mailing in Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to the Internal Revenue Service. Form 4868 is available on the IRS Web site at www.irs.gov. You may e-file an extension request using tax preparation software on your own computer or through a tax preparer. You will get an acknowledgment that the IRS has received your request. Members of the military and others serving in combat zone localities. Typically, taxpayers can wait until at least 180 days after they leave the combat zone to file returns and pay any taxes due. For details, see Extensions of Deadlines in Publication 3, Armed Forces Tax Guide.
9. More Time to Pay: Taxpayers who have finished their returns should file by the regular April 15 deadline, even if they can’t pay the full amount due. In many cases, those struggling with unpaid taxes qualify for one of several relief programs. Most people can set up a payment agreement with the IRS on line in a matter of minutes. Those who owe $50,000 or less in combined tax, penalties and interest can use the Online Payment Agreement to set up a monthly payment agreement for up to six years. Taxpayers can choose this option even if they have not yet received a bill or notice from the IRS. Alternatively, taxpayers can request a payment agreement by filing Form 9465-FS. This form can be downloaded from IRS.gov and mailed along with a tax return, bill or notice.
The IRS has several options available for tax help and forms. Go to the IRS Web site at www.irs.gov to get tax forms and publications as well as tax information. Recorded tax information on a variety of tax topics is available by calling 1-800-829-4477. Toll-free telephone assistance is available by calling the IRS at 1-800-829-1040. Free tax help is as near as a community center, school, local library or senior center for thousands of Taxpayers this year. Volunteers are on-site at more than 400 locations statewide and are ready to offer free tax return preparation and, at many sites, free electronic filing. Call 1-800-906-9887 for volunteer tax site locations. Help is also available at some IRS offices. Check out the IRS Web site at www.irs.gov for IRS office locations and hours.
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