Protect Yourself From Tax
Tax ID theft occurs when someone steals your personal information to file a tax return using your personal data. Usually, the fraudulent tax filer will use your Social Security number to file your return in order to collect a refund. To protect yourself from tax ID theft, you can obtain a six-digit Identity Protection PIN from the IRS. IP PINs are known only to you and the IRS so the IRS is able to confirm your identity when you file your return. Learn more about how the IP PIN works and how to apply.
What Do I Need To File Taxes
Employees need W-2s and non-employees, including contractors or gig workers, need 1099s. These forms will either be mailed to you in February or will be available online through your payroll company.
Freelancers:
Banks are also required to send 1099s to customers who received interest or dividends.
If you still dont have your W-2 by the tax deadline, you can use the W-2 substitute, Form 4852, and estimate your wages and withheld taxes. Note that the IRS could delay your refund while verifying the information.
Youll also need your adjusted gross income from the previous year to sign and file your tax return.
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How Late Can You Receive A Tax Refund
If you expect a tax refund, you dont want to wait too long to file your tax return.
The IRS typically allows you to claim a refund by submitting a return within three years of its due date. If you dont file within that time frame, you may lose out on your refund.
For example, lets say you never filed your 2019 tax return, which was due July 15, 2020. If you think you should have received money back for 2019 but dont file that years tax return by July 15, 2023, youll forfeit the refund.
And, keep in mind that youll still have to file a 2019 return if you meet the tax filing requirements. Todays best tax software will help you get the job done.
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Extension To File Your Tax Return
If you cant file your federal income tax return by the due date, you may be able to get a six-month extension from the Internal Revenue Service . This does not grant you more time to pay your taxes. To avoid possible penalties, estimate and pay the taxes you owe by the tax deadline of April 19, 2022, if you live in Maine or Massachusetts or April 18, 2022, for the rest of the country.
Irs Free File Available Until October 17 Midnight Eastern Time
Welcome to IRS Free File, where you can electronically prepare and file your federal individual income tax return for free using tax preparation and filing software. Let IRS Free File do the hard work for you.
IRS Free File lets you prepare and file your federal income tax online using guided tax preparation, at an IRS partner site or Free File Fillable Forms. It’s safe, easy and no cost to you for a federal return.
To receive a free federal tax return, you must select an IRS Free File provider from the Browse All Offers page or from your Online Lookup Tool results. Once you click your desired IRS Free File provider, you will leave the IRS.gov website and land on the IRS Free File providers website. Then, you must create an account at the IRS Free File providers website accessed via IRS.gov to prepare and file your return. Please note that an account created at the same providers commercial tax preparation website does NOT work with IRS Free File: you MUST access the providers Free File site as instructed above.
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How Do Social Security Benefits Impact Filing Requirements
Now that you know your gross income is a primary factor in whether you have to file taxes, you may be wondering how Social Security benefits factor in.
In some cases, you wont need to pay taxes on your Social Security, but it all comes down to your combined income.
Combined income includes:
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Half of your Social Security income
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Your tax-exempt interest
Youll need to pay taxes if your combined income is greater than $25,000 as an individual or greater than $32,000 if married filing jointly. However, you wont pay taxes on more than 85% of your Social Security benefits. How much of your Social Security income is subject to tax will depend on your combined income.
If youre filing as an individual and your income is between $25,000 and $34,000, 50% of your benefits are taxed0. If your income exceeds $34,000, 85% of your benefits are taxed.
If youre filing a joint return, 50% of your benefits are taxed if your income is between $32,000 and $44,000. If your income exceeds $44,000, 85% of your benefits are taxed.
For each year you receive Social Security, you should receive a Form SSA-1099 from the Social Security Administration. This form is for tax-filing purposes and outlines how much you received in Social Security benefits for the year.
We Provide Qualified Tax Support
E-file’s online tax preparation tools are designed to take the guesswork out of e-filing your taxes. Our program works to guide you through the complicated filing process with ease, helping to prepare your return correctly and if a refund is due, put you on your way to receiving it. Should a tax question arise, we are always here help and are proud to offer qualified online tax support to all users.
If you’ve ever tried calling the IRS during the tax season, you probably know that telephone hold times at peak periods can be hours long. Our dedicated support team enables customers to get their questions answered just minutes after a question is sent, even during peak times. Simply send us a “help” request from within your account and our experts will begin working on your problem and get you an answer as quickly as possible. Prefer to call us? We also provide full telephone support to all taxpayers filing with our Deluxe or Premium software.
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Filing A State Return
TaxACT’s state modules are not standalone applications. They require the federal software to run.TaxACT allows you to prepare your state return, but first you need to prepare your federal return. All the data that flows to the state return originates from the federal return. The State Q& A interview section then prompts you for additional information that is specific to your state. Depending on your state, your filing options may be limited if you have already filed your federal return . If you are in a “Piggy Back” state , you will be required to print and mail your return if not submitting it along with the Federal return. For all other states you can electronically file by selecting State Only when going through the filing steps.
State Only Filing: To file only your state return, click on the blue Filing tab and select E-File My Return. Select the state-only return you wish to submit and then complete the filing steps.
If you do not see the option to file only your state return when going through the filing steps, please follow the instructions below:
Welcome To Maine Fastfile
Maine Revenue Services solution to fast and secure tax filing. The Maine Fastfile service provides three options:
Modernized e-File e-File using tax preparation softwareThis service is offered through the IRS and provides one stop processing of federal and state returns. This is the do it yourself option through the purchase of tax preparation software either over-the-counter or online, prepare your own return and press send to e-file. Your return is sent through safe and secure channels, not via e-mail. Prices do vary so shop around .
OR e-File through a paid tax professional
Find a tax professional you trust to prepare and e-file your return. Nearly all tax preparers use e-file now and many are now required by law to e-file. But it’s still a good idea to tell your tax preparer you want the advantages of e-file your refund in half the time, or if you owe, more payment options.
Maine i-File i-File free for Maine taxpayersThis service is available for filing your individual income tax return including the Maine property tax fairness credit. The advantages of Maine i-File are:
Certain restrictions apply. See the directions page of the i-File application for more information.
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No Matter How You File Block Has Your Back
Understand How Your Taxes Are Determined
The government decides how much tax you owe by dividing your taxable income into chunks also known as tax brackets and each chunk gets taxed at the corresponding tax rate. The beauty of this is that no matter which bracket youre in, you wont pay that tax rate on your entire income.
The progressive tax system in the United States means that people with higher taxable incomes are subject to higher federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
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How To File Your State Tax Return For Free
As you have probably noticed, many places offer a free filing of a Federal return but dont offer free state filing.
But there are a few ways to get your state income tax returns done for free and in this article, I am showing you free file programs that I found
TurboTax has rolled out their TurboTax FREE file program where you can get your Federal, State, and filing all done free.
They still offer paid options for more complicated tax returns, but if you dont have too much craziness going on with your taxes you will probably be eligible for their free program.
TurboTax has a long history of offering free Federal returns but people were always asking Is TurboTax free for state filing? and now the answer is a yes!
I personally love how simple and intuitive TurboTax is to use. You just answer their simple questions and they tax care of the rest.
You can read more about the details of who is eligible on their website and get started on the TurboTax Website.
Why Is Turbotax Charging Me
If you make less than $36,000 a year and TurboTax is telling you it costs money to file, you are probably using the wrong version of TurboTax. Dont worry, there is a way to access the truly free version.
As ProPublica reported last year, TurboTax purposefully hid its Free File product and directed taxpayers to a version where many had to pay, which is called the TurboTax Free Edition. If you clicked on this FREE Guaranteed option, you could input a lot of your information, only to be told toward the end of the process that you need to pay.
You can access TurboTaxs Free File version here. This version is offered through the Free File agreement.
TurboTaxs misleading advertising and website design directed users to more expensive versions of the software, even if they qualified to file for free. After our stories published, some people demanded and got refunds. Intuit, the maker of TurboTax, faces several investigations and lawsuits because of this. The company has denied wrongdoing.
Following ProPublicas reporting, the IRS announced an update to its agreement with the tax-preparation companies. Among other things, the update bars the companies from hiding their Free File offerings from Google search results. It also makes it so each company has to name their Free File service the same way using the format: IRS Free File Program delivered by .
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The Legality Of Filing Without Your W
If you file electronically, you will have no problem filling your taxes without having your W-2. However, you still need the information from the W-2 in order to accurately do your taxes. Some of the things you will need are:
- Medicare tips and wages
- Withheld Medicare tax
- Any withheld local income taxes
Although it is not necessary to submit a W-2 copy when you file electronically, you will have to enter the information found on this form. It is still very important to make sure your W-2 stays in a safe place because you may need it at some point. For instance, it may be required for background checks, for an audit, or other similar situations.
Keep in mind that you will have to produce the W-2 and other documents in case of an audit. They will allow you to show evidence of your income, as well as withholding. If you are unable to show that you entered those numbers in good faith, you may end up dealing with legal problems.
The employer is the one who should file the W-2 form with the Social Security Administration. This has to be done before the end of January. Also, the information will be shared by the SSA with the IRS. This is how they will be able to tell whether you and your employer reported different numbers, in which case an audit will take place.
Top 5 Reasons To File Your Taxes Early
OVERVIEW
Every year, many taxpayers wait until the last minute to file their federal income tax returns. Despite this tendency, there are many reasons to file your taxes early. If you will receive a refund, you may want to submit your return as quickly as possible. Additionally, there are benefits to filing early for those taxpayers who have a balance due.
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Failure To Pay Penalty
A failure to pay penalty applies if you dont pay the tax you report on a tax return by the due date or an approved extended due date. The penalty is calculated as a percentage of the taxes you didnt pay: 0.5% of your unpaid taxes for each month the balance goes unpaid.
The maximum penalty the IRS can charge is 25% of your unpaid taxes. The IRS charges interest on the penalty here, too.
If you have to pay both a failure to file penalty and a failure to pay penalty in the same month, the IRS reduces the amount you owe. The combined penalty comes out to 5% for each month or part of a month your return was late.
For example, instead of hitting you with a 5% failure to file penalty for a month, the IRS will charge a 4.5% failure to file penalty and a 0.5% failure to pay penalty, for a total of 5% of your unpaid taxes.
Here’s A Few Things For Taxpayers To Know About Filing State Tax Returns Through Free File
- Most people make less than the $72,000 income limit. So, most people can use Free File.
- Generally, taxpayers must complete their federal tax return before they can begin their state taxes.
- More than 20 states have a state Free File program patterned after the federal partnership. This means many taxpayers are eligible for free federal and free state online tax preparation.
- The states with a Free File program are Arkansas, Arizona, Georgia, Idaho, Indiana, Iowa, Kentucky, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, New York, North Carolina, North Dakota, Oregon, Rhode Island, South Carolina, Vermont, Virginia and West Virginia, plus the District of Columbia.
- IRS Free File partners feature online products, some in Spanish. They offer most or some state tax returns for free as well. Some of them may charge so it’s important for taxpayers to explore their free options.
- Free File partners will charge a fee for state tax return preparation unless their offer says upfront the taxpayer can file both federal and state returns for free. Taxpayers who want to use one of the state Free File program products should go to their state tax agency’s Free File page.
- Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming don’t have an income tax. So, IRS Free File for a federal return may be the only tax product people in those states need.
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