Tax Time!

Tax Time!

January 29th (Start) – April 17, 2018 (End)

With one week left to file your 2017 taxes, the countdown is on.  If you have not filed them yet, then you’re in luck. Usually, the last day to file your taxes is April 15th, but this year it falls on a weekend and Washington, DC celebrates Emancipation Day on April 16th. This means that you have 2 more days to file. So stop procrastinating and get your taxes done.

One million taxpayers have not filed their 2014 tax returns. Therefore, there is still $1B in unclaimed tax refund money according to the IRS. This year the IRS expects that most Americans will be filing their taxes electronically using the 1040EZ filing software. It is estimated that 4 out of 5 tax returns will be prepared using software and then E-filing to the IRS.

So what can you expect this tax season? This year there are a few to pay close attention to because they will probably affect how much money you are refunded or have to pay. The IRS expects it will receive nearly 155 million individual tax returns this season. Be patient. Sign-up for direct deposit if you want to receive your refund quicker. Also, under the previous tax law, filers that took the medical expense deduction could only deduct qualifying costs that exceed 10 percent of their adjusted gross income. Now, that threshold has been dropped down to 7.5 percent. If you own a home, good for you. You will be able to deduct mortgage interest on Form 1098. Students and parents/guardians don’t forget to deduct tuition and education cost.  Check to see if you or your child qualify for the Lifetime Learning Credit or the American Opportunity Credit. Childcare, as well as daycare, can also be deducted while filing.

If you need longer to prepare your taxes this year you still need to file an extension by April 17th. The IRS will extend your 2017 Federal/State tax return until October 15, 2018. If you are wanting to file an extension, use Form 4868. This form is used if you want to submit an application for an automatic extension of time to file your individual income tax return. Also, keep in mind that you have 3 years from the original date that you filed your taxes from previous years to amend them.

 To check to see if the IRS has received your tax return or to check the status of your return you can visit IRS.gov and click on the tab that says “Where is My Refund.” you can also use their mobile app, IRS2Go. It will ask you a few questions and then give you a date of when you could expect to receive your refund. If you filed electronically then expect 8-21 days and if you opted to have your check mailed rather than deposited in your bank account then add on an additional week for mailing. A general rule is to expect your refund within 30 days of filing.

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