Getting organized is one of the best things to do before starting the annual task of filing a tax return. And don’t overlook IRS Free File. Taxpayers who had an adjusted gross income of $72,000 or less in 2020 can use it to prepare and electronically file their tax return. Last year, the IRS saw a 50 percent increase nationwide in the use of the popular program with more than 4 million people using Free File or Free File Fillable Forms.
“Electronic filing is the easiest, safest and fastest way to do taxes,” said Clay Sanford, an IRS spokesman. “The program also helps to maximize your refund or lessen tax owed by asking specific questions to determine if you’re qualified for tax credits or deductions.”
Free File can find tax breaks like the Recovery Rebate Credit for those who did not get any or all of the recent Economic Impact Payments. Also, the program can check your eligibility for the Earned Income Tax Credit (EITC) or a special $300 tax deduction for charitable contributions – even if you don’t itemize.
Electronic filing gives you an e-mail verification when your tax return is received by the IRS for processing, Sanford added. To get a notification from the software company that your return was accepted by the IRS, all you need is a valid email address.
Here are more tips for filing taxes:
Gather income documents and personal information. Birth dates, Social Security numbers or taxpayer identification numbers (ITIN) are necessary for filing a tax return. Also, look for Forms W-2, Wage and Tax Statements, and Forms 1099.
Avoid errors. Taxpayers should take extra time to review their tax return so they can file a complete and accurate return and avoid refund delays. Filing electronically is the most accurate way to eliminate many common errors. Even so, double check all names, birth dates, and Social Security or ITIN numbers. It’s also important to check your bank account and routing numbers for accuracy if you are receiving a refund by direct deposit.
Choose a good preparer. People value good tax return preparers for helping them through a complicated tax situation or for being available when they don’t have time to prepare their own tax return. Paid tax return preparers completed more than half of the tax returns submitted to the IRS in tax-year 2018. IRS.gov has resources to help people choose a tax pro. The IRS Directory of Federal Tax Return Preparers provides information on who has a professional credential or participates in the IRS Annual Filing Season Program.
Use Direct Deposit or Direct Pay. The safe and fast way to get a tax refund is to have it electronically deposited into a financial account by direct deposit. For taxpayers who owe tax, Direct Pay is a secure service to pay taxes for Form 1040 series, estimated taxes or other associated forms directly from a checking or savings account at no cost.
Review IRS Publication 17. This guide covers the general rules for filing a tax return and is available on IRS.gov. The latest edition is now accessible on most personal electronic devices as an eBook.
Taxpayers can find answers to questions, forms and instructions and easy-to-use tools online at IRS. gov. They can use these resources to get help when it’s needed—at home, at work or on the go. The Interactive Tax Assistant provides answers to many tax questions specific to an individual’s circumstances. It gives the same answers that an IRS representative would give over the phone.
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