Are you prepared to file your tax return this year? Do you know all the facts, tips, and tricks you should know before submitting to the IRS? If your knowledge is lacking, then tune in for a few updates or refreshers on what you should know about your 2016 tax refund.
Things Different for the 2016 Tax Return Year
Every year, a few things differ from previous year’s tax return seasons. This year the term opens on January 23rd 2017, and returns will not be accepted by the IRS before then. E-filing has taken over the tax return world and four out of five taxpayers will file electronically this year; with or without the help of a professional. For the 2016 return season, the due date is April 18th 2017, not April 15th as expected. This is occurring because that date falls on a Saturday in the upcoming year. Correspondingly, Monday, April 17th just happens to be Emancipation Day, which is a legal holiday in the District of Colombia. Therefore, the due date has been extended back three whole days. A database called FreeFileis a program made available by the IRS for taxpayers with incomes at or below a yearly $64,000 or less. This program allows for free filing software which seven out of ten of the nation’s tax payers are eligible for during the 2016 tax return season.
Facts for the 2016 Tax Return
The technology of today’s day and age has consumed the tax return world. This year the IRS predicts that eight out of 10 taxpayers will obtain their tax refunds by means of direct deposit. The IRS also anticipates that nine out of 10 taxpayers will receive their refunds in less than 21 days, and there’s also a IRS2Go app available for your mobile devices to check the status of your refund. Correspondingly, there is a new law that an Individual Tax Payer Identification Number (ITIN) that has not been used on a federal tax return at least once in the last three years (previously was five years) will no longer be valid for use after Sunday, January 1st, 2017 unless specifically renewed by the taxpayer. Additionally, this year, to help defer identity theft and refund fraud, taxpayers who file by themselves using a product for the first time may need their last year’s Adjusted Gross Income (AGI) amount to verify their identity.
Your 2016 Tax Refund
Did you know that eight out of 10 taxpayers get a tax refund? It seems that tax return season is almost the adult version of Christmas because typically the masses have to run out and spend it. As a taxpayer, you may qualify to receive a refund at the end of the year, but it often just means you paid more income tax than what was needed. On that W-4 form you filled out for your employer upon being hired, you indicated the amount of taxes that needed to be withheld from each of your paychecks, and you may have overestimated a little. More details here: http://www.jmbphotography.ca/do-you-work-in-the-fashion-industry-looking-to-lower-your-tax-bill-this-article-can-help/
The Truth About Your Tax Refund
That tax return that you’ve been considering as ‘free money’ was kind of a advance you made to the IRS, and they didn’t reimburse you with any interest.