How can I improve my tax season experience?
- You can improve your tax season experience by learning how to maximize your tax return and get a bigger refund from Uncle Sam.
What helps you get a bigger tax refund?
5 Hidden Ways to Boost Your Tax Refund: Rethink Your Filing Status (Part 1)
- Rethink your filing status.
- Embrace tax deductions.
- Maximize your IRA and HSA contributions.
- Remember, timing can boost your tax refund.
- Become tax credit savvy.
Can I file my 2014 tax return now?
You can still file 2014 tax returns Even though the deadline has passed, you can file your 2014 taxes online in a few simple steps. Our online income tax software uses the 2014 IRS tax code, calculations, and forms. File your 2014, 2015, 2016, 2017, 2018, 2019, and 2020 tax returns.
Can I amend my 2014 tax return in 2020?
Generally, you must file Form 1040X within three years from the date you filed your original tax return or within two years of the date you paid the tax, whichever is later. Right now, you can amend your tax returns for 2014, 2015 and 2016. After April 15, 2018, you can no longer amend your 2014 tax return.
How many years can you go back to correct a tax return?
Three-year time limit. You usually have three years from the date you filed your original tax return to file Form 1040-X to claim a refund. You can file it within two years from the date you paid the tax, if that date is later.
Do you get a bigger tax refund if you make less money?
Tax refunds result from an overpayment of required taxes. Employers deduct a certain portion of pay from income to cover taxes employees owe to the Internal Revenue Service. If you make less money now than you did in the past, you could potentially get a larger tax refund.
Is it better to claim 1 or 0 on your taxes?
By placing a “0” on line 5, you are indicating that you want the most amount of tax taken out of your pay each pay period. If you wish to claim 1 for yourself instead, then less tax is taken out of your pay each pay period. If your income exceeds $1000 you could end up paying taxes at the end of the tax year.
Can I file a 2014 tax return in 2021?
Yes, in general you have three years from the original filing date, without extensions, to claim a refund. H&R Block has prior year programs you can download to file prior year return(s). Follow the instructions to download the software.
Can you get IRS refund after 3 years?
In most cases, an original return claiming a refund must be filed within three years of its due date for the IRS to issue a refund. Generally, after the three-year window closes, the IRS can neither send a refund for the specific tax year.
What should I do if I haven’t filed taxes in 10 years?
If you haven’t filed your federal income tax return for this year or for previous years, you should file your return as soon as possible regardless of your reason for not filing the required return.
Do amended returns get audited more?
According to Renwick, speaking at an American Law Institute-Continuing Legal Education conference, filing an amended return generally does not increase the chance of being audited.
Are amended returns taking longer this year?
Because the IRS is taking more time processing amended returns, refunds will take longer, too. So be prepared for a wait. Note: If you do have money coming as a result of an amended return, the IRS will mail you a check. The agency is not offering direct deposits for any refunds related to a Form 1040-X.
How many years can you go back to amend a tax return in Canada?
Generally you can only request a change to a return for a tax year ending in any of the 10 previous calendar years. For example, a request made in 2022 must relate to the 2012 or a later tax year to be considered.
How many years back can IRS audit?
Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don’t go back more than the last six years. The IRS tries to audit tax returns as soon as possible after they are filed.
Can CRA go back 10 years?
Essentially, you need to go 10 years without any CRA collection action in order for the CRA Statute of Limitations to apply. Acknowledging the debt (such as filing an objection or an appeal) can also extend or restart the time limit.
Will filing an amended return trigger an audit?
However, IRS officials deny that filing an amended return increases your audit chances. Amending your return will likely not result in an audit unless there is a substantial change in your taxable income without a reasonable cause.
3 Ways to Maximize the Size of Your 2014 Tax Refund
Given the fact that tax season is in full gear, you may be hoping for a few extra tax benefits to help you maximize your 2014 return. As a result, while there isn’t much you can do to improve your tax return right now (after all, it is 2015), there are a few things you can do to improve your tax return while also getting a head start on your tax preparation for 2015. And it might be as easy as relocating your money to a more beneficial location or reexamining your tax filing status to make a difference.
With that in mind, here are three techniques from our tax experts that can help you increase your refund while also allowing you to prepare more effectively in the years ahead.
Unfortunately, if you invest for your retirement through a Roth IRA, this will not significantly reduce your present tax liability; nevertheless, the effect of conventional IRA contributions on your tax refund might be quite significant.
There are a few income and employment-related requirements that must be met in order to determine whether or not you are qualified to deduct your conventional IRA contributions.
- Unless you and your spouse are both covered by health insurance, you will be able to deduct all of your contributions if your combined income is less than $181,000 in 2014.
- Finally, single filers who are covered by their employer’s health insurance and make less than $60,000 can claim the entire deduction.
- Furthermore, depending on your marginal tax rate, increasing your contributions now might result in hundreds, or even thousands, of dollars in additional tax refund.
- Using last-minute tax preparation has a number of challenges, including the fact that there are only a limited number of things you can do to increase your 2014 tax refund at this stage.
- One thing to consider, though, is whether you actually want a refund in the first place.
- Alternatively, if you believe you have had too much money withdrawn from your paychecks in the past, ask your employer for a copy of Form W-4, which you may use to recalculate the amount of money deducted from your paychecks for tax purposes.
- Granted, you won’t receive a large refund at the end of the year, but putting your money into your hands earlier may be well worth it.
- In some cases, such as when you are married, you can choose whether to submit your tax return jointly or individually.
- However, there are several circumstances in which filing separately might save you money while also increasing the size of your return.
- This is due to the fact that the amount to which various deductions are permitted is typically connected to one’s adjusted gross income (AGI).
Single people aren’t completely out of luck, either, as some of them may be eligible to file as head of household if they have at least one child who lives with them for more than half of the year and if they pay more than half of the costs associated with maintaining the home for the child (as long as the child lives with them for more than half the year) (such as housing and food).
It is possible to pay less tax and claim a larger standard deduction by declaring one’s status as head of household rather than single.
You should contact with a tax professional to determine your best course of action, or you may utilize tax-preparation software that will quickly and simply show you which options will result in the lowest tax bill.
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Six Tips on Who Should File a 2014 Tax Return
IRS Tax Tip 2015-03, published on January 22, 2015, by the Internal Revenue Service. Most individuals submit their tax returns because they have no choice; however, there are situations when you should file even if you don’t have to. It’s possible that you’re entitled for a tax refund but aren’t aware of it. This year, there are a few new requirements that must be followed by those who must file. Listed below are six tax recommendations to assist you in determining whether or not you should submit a tax return:
- General Filing Requirements Whether or whether you are required to submit a tax return is determined by a few things. In most circumstances, whether or not you are required to submit a tax return is determined by the amount of your income, your filing status, and your age. You must submit your taxes if your gross income was at least $10,150 in the previous year, for example, if you’re single and 28 years old. If you are self-employed or if you are a dependency on another person, you may be subject to additional requirements. There are also additional instances in which you must file a claim. Go to IRS.gov/filing to see whether or not you must file a tax return. The Premium Tax Credit is a new feature for 2014. It is possible that you will be qualified for the new Premium Tax Credit if you purchased health insurance through the Health Insurance Marketplace in 2014. In order to claim the credit, you will need to file a tax return. If you purchased coverage via the Marketplace in 2014 and choose to have advance payments of the premium tax credit delivered directly to your insurer during the year, you must submit a federal income tax return with the Internal Revenue Service. You will need to reconcile any advance payments with the Premium Tax Credit that is available. By the beginning of February, you should have received your Form 1095-A, Health Insurance Marketplace Statement. The new form will include information that will assist you in filing your tax return, such as whether tax was withheld or paid. Was your federal income tax withheld from your paycheck by your employer? Were you able to make your projected tax payments? Did you make a mistake with your tax payment last year and have it transferred to this year’s tax? Depending on whether you replied “yes” to any of these questions, you may be entitled to a refund. Earned Income Tax Credit, on the other hand, requires you to file a tax return in order to get it. Did you work and earn less than $52,427 in the previous fiscal year? If you qualify for EITC as a tax refund, whether or not you have a qualifying kid, you might receive a tax return. You might be eligible for up to $6,143 in compensation. Find out if you qualify for the 2014 Earned Income Tax Credit by using the 2014EITC Assistant tool on IRS.gov. If you qualify, you must submit a tax return in order to claim the Additional Child Tax Credit. Does your family have at least one qualifying kid for the Child Tax Credit? If so, go here. If you do not qualify for the full amount of the credit, you may be eligible for the Additional Child Tax Credit or the American Opportunity Credit. The AOTC is available for students enrolled in four years of postsecondary education and can be worth up to $2,500 per qualifying student who meets the requirements. You or your dependant must have been enrolled at least half-time as a student for at least one academic session in order to be eligible. Even if you do not owe any taxes, you may still be eligible for this program. To be eligible for the credit, you must completeForm 8863, Education CreditsPDF and submit it with your tax return. To find out if you qualify for the credit, visit IRS.gov and use the Interactive Tax Assistant tool. Learn more about education credits by visiting the IRS’s Education Creditswebpage.
Additional IRS Resources:
- Premium Tax Credit (PTC)
- Form 8962PDF, Premium Tax Credit (PTC)
- Publication 5187PDF, Health Care Law: What’s New for Individuals and Families
- Schedule 8812(Form 1040A or 1040), Child Tax Credit
- Form 8863, Education Credits
- Publication 596, Earned Income Credit
- Publication 972, Child Tax Credit
- Publication 970, Tax Benefits for Education
- Publication 9
IRS YouTube Videos:
- Is it necessary for me to file a tax return? The First Time Filing a Tax Return? – English (Obsolete)
- The Premium Tax Credit –English|Spanish|ASL
- The Education Tax Credits –English|Spanish|ASL
- The Premium Tax Credit –English (Obsolete)
- Do I Need to File a Tax Return? –EnglishMP3|SpanishMP3
- Is This My First Time Filing a Tax Return? – Spanish (Obsolete)
- Premium Tax Credit –EnglishMP3|SpanishMP3
- Education Tax Credits –EnglishMP3|SpanishMP3
- Do I Need to File a Tax Return? –EnglishMP3|SpanishMP3
- Do I Need to File a Tax Return? – Spanish (Obsolete
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10 End of Year Tax Tips to Increase Your Tax Refund
What a shock it is to realize that we are already at the last quarter of the year! With the calendar year 2021 drawing to a close, now is an excellent opportunity to make some simple and sensible tax actions that can help minimize your tax payment and enhance your tax refund when you file your taxes next year. Gather all of your receipts for any tax-deductible expenses and sources of income so that you may take advantage of these 10 fast and easy tax tips to get your finances in order and save money at tax time before the year is through.
- Bonuses can be deferred: It is possible that your hard work has paid off and that you will receive a year-end bonus; but, this additional money in your pocket may cause you to be placed in another tax bracket, increasing the amount of taxes you owe.
- You will still receive your bonus at the end of the year if your supervisor is unable to pay it to you in January.
- delay income:There are a certain tax deductions that are only recognized in the year in which they are paid, such as charitable contributions.
- If you make an additional mortgage payment on December 31, you may be able to claim the excess interest as a tax deduction in the year in which it was paid.
Please be aware that, as a result of the Tax Cuts and Jobs Act, if you purchased a new home after December 15, 2017, you will be able to deduct the mortgage interest you paid on a home loan up to $750,000, rather than the $1,000,000 that was previously available to homeowners who purchased before that date.
- Make a charitable donation: The holiday season is approaching, which is an excellent opportunity to purge your closet and home products in order to help those in need.
- It is important to remember that if you volunteer at a qualifying nonprofit organization, you may deduct your mileage (which is 14 cents per mile traveled for charitable activity).
- Donate by December 31st to ensure that your contributions are recognized on your tax return.
- You may usually deduct your charitable gift on your income tax return if you make it to a qualifying charity and claim it as one of your deductions when you itemize your deductions.
- For tax year2021, this sum is up to $600 per tax return for those who file married filing jointly and $300 for those who file under another filing status for those who file married filing jointly.
- The CARES Act also eliminates the restriction on the amount of cash donations that can be deducted from your income provided you itemize your deductions for the time being.
With the Lifetime Learning Credit, paying for next quarter’s tuition by December 31 may qualify you for a valuable tax credit of up to $2,000 per tax return if you pay by that date.
Maximize your retirement savings: Making a contribution to your retirement savings account is another excellent way to reduce your taxable income while simultaneously increasing your nest egg.
You can contribute up to the lesser of 25 percent of your net self-employment income or $58,000 in a SEP IRA for fiscal year 2021 if you are self-employed and make contributions to the account.
Use your Flexible Spending Account: If you have a Flexible Spending Account and have money left over, use it to catch up on missed doctor appointments.
You may also be restricted to using your funds for a period of 2 1/2 months after the end of the plan year, depending on the terms of your plan.
Buy low, sell low: Did you know that if you have a few investments in your portfolio that have declined in value, you can recognize your losses and use them to offset investment winners?
If your losses outweigh your gains, you may be able to deduct $3,000 of your losses from your regular income.
You can do this by adjusting your withholding on your W-4 and resubmitting the form to your employer.
What about another close friend or family member?
Do you pay home property taxes, state taxes, or have you recently made a large purchase for which you paid a significant amount of sales tax?
Taxes on property, income, and sales paid to the state and local governments can still be deducted up to a maximum of $10,000.
Don’t be concerned about understanding these tax regulations.
TurboTax Livetax experts have an average of 12 years of experience and are available to answer your tax questions live via one-way video.
You can completely delegate your tax preparation to TurboTax Live tax experts from the comfort of your own home. They are available in both English and Spanish throughout the year and can review, sign, and file your tax return, or you can completely hand over your taxes to them.
Lisa Lewis is a Certified Public Accountant and the editor of the TurboTax Blog. Lisa has been in the tax preparation business for 15 years. One of the keys to her success has been her ability to read tax rules and assist customers in better understanding them. Lisa has also been a long-time user of TurboTax products and is familiar with how the software program operates. Lisa has a diverse professional history that includes substantial tax experience as well as other areas of expertise. She has worked as a public auditor, controller, and operations manager, among other jobs.
Additionally, she may be seen assisting TurboTax consumers with their tax issues during the Lifeline program.
Ways to Increase Your Tax Refund You Never Thought About
Updated for Tax Year 2021 / January 31, 2022 02:10 PM (U.S. Eastern Time). OVERVIEW Tax refund preparation needs only a few easy tax planning steps, some research, and a little thoughtfulness on the part of the taxpayer. Tax planning strategies such as reviewing your tax situation, contacting your spouse while filling out your W-4s, and taking advantage of various tax breaks and credits may all help you improve your tax refund. TurboTax can also assist you in determining which credits will result in the largest return.
The Most Important Takeaways Choosing the file status that is most appropriate for your circumstances might help you save money on taxes and improve your return.
Making a claim for the Earned Income Tax Credit (EITC) If you are qualified, you may be able to reduce the amount of taxes you owe and you may even be able to receive a tax refund even if you do not owe any taxes.
This has the potential to lower your taxes and increase your refund.
Review your W-4: Bigger refund or bigger paycheck?
When you start a new job, your employer will require you to fill out the W-4 form. This informs your employer of the amount of federal income tax to deduct from your pay check each pay period. The amount of tax withheld will vary depending on the amount of income you earn and the credits you claim on your W-4.
Having less taken out of your income will result in larger wages, but a lesser tax refund (or potentially no tax refund or a tax bill at the end of the year). When completing your W-4, you should take the following factors into consideration:
- Claiming tax credits, such as the Child Tax Credit and the Other Dependent Credit, will reduce the amount of withholding you are required to make. If you have additional income from a second employment or investments, you should adjust your withholding accordingly. If you anticipate to claim itemized deductions rather than the standard deductions, you need make adjustments to account for the lower withholding. Any additional income tax that you would wish deducted from your paychecks each pay period
Increased income specified on your W-4 will result in smaller paychecks as more tax will be deducted from your earnings. This raises your chances of having too much money withheld from your paycheck, which might result in a larger tax refund. That’s why it’s referred to as a “refund”: you’re just receiving money back from the IRS that you overpaid throughout the course of the year. You will receive larger paychecks if you state that you will receive certain credits or deductions, while your refund will almost certainly be reduced (or perhaps owe some additional tax).
Revisit your filing status
Choosing the filing status that best meets your needs might have an impact on your chances of receiving a refund. The following is determined by your filing status:
- You are entitled to a standard deduction. Your documentation needs
- The credits that you are qualified to get are as follows: The amount of tax you owe or the amount of tax you get as a refund
There are five different statuses to select from, with the following being the most common:
- Five different statuses are available, however the most commonly used are as follows:
TurboTax can assist you in determining which option is the most advantageous for your particular scenario. In contrast to previous years, you can still receive a refund through theChild and Dependent Care Credit even if you do not owe any taxes. TurboTax Tip:
Claim the Earned Income Tax Credit
People with a moderate to low income, including working families, individuals, self-employed persons, and others, may be eligible for the Earned Income Tax Credit. The Earned Income Tax Credit (EITC) reduces the amount of taxes owing and may entitle you to a tax refund. To be eligible, you must meet the following requirements:
- Be in possession of a valid Social Security number
- Be a citizen of the United States, a year-long resident alien, or a non-resident alien married to an American citizen or resident alien who is filing jointly with you. Income through self-employment, an employer, or working on a farm are all acceptable sources of income. Being a claimed dependant or kid of another individual is not permitted. It is necessary to have a qualifying kid and be between the ages of 25 and 65, as well as to spend at least half your time in the United States.
Even if you do not owe any taxes, you must submit a tax return in order to get the EITC.
Include the Child and Dependent Care Credit
This credit is based on a percentage of the amount you paid to care for a qualified child or dependent during the previous year. For tax year 2020, the total amount of costs that can be claimed is set at $3,000 for one qualified individual and $6,000 for two or more individuals who are eligible. If your company provides dependent care benefits, you are required to deduct the applicable amount from your income tax. According to the American Rescue Plan, major changes will be made to the amount and method of claiming the child and dependent care tax credit beginning in 2021.
Therefore, unlike in previous years, you can still claim the credit even if you do not have an outstanding tax liability.
- The amount of qualifying costs rises from $3,000 to $8,000 for a single qualified person and from $6,000 to $16,000 for two or more qualifying persons
- Nevertheless, the quantity of qualifying expenses does not increase. In addition, the percentage of qualified costs that are eligible for the credit has increased from 35% to 50%. From $15,000 to $125,000 in adjusted gross income (AGI), the threshold for triggering the decrease of the credit has been increased.
For tax year 2021, the maximum amount that can be donated to a dependent care flexible spending account and the maximum amount of tax-free dependent care benefits offered by an employer are both increased from $5,000 to $10,500. A qualified individual is defined as follows:
- Your minor child who is under the age of thirteen
- If you have a dependant who is physically or psychologically unable of self-care and who stays with you for more than half of the year, you are considered to have a dependent. Your spouse, who is unable to care for himself or herself and who lives with you for more than half of the year.
Other requirements must be satisfied in order to be eligible for the credit.
- If you are married, you are required to submit a joint tax return
- Otherwise, you are exempt. You are not permitted to use a caregiver who is the kid’s spouse or parent, your child under the age of 19 or another of your dependents. It is necessary to include the Social Security numbers of any qualified dependents and children on your tax return. If you have a caregiver, you must supply their name, address, and Social Security number.
Use TurboTax to assist ensure that you don’t miss any of the deductions or credits that you are entitled to, and that you receive the largest refund possible, guaranteed.
All you need to know is yourself
Provide straightforward answers to a few easy questions about your life, and TurboTax Free Edition will take care of the rest. Simple tax returns are all that are required. In the preceding article, generalist financial information intended to educate a broad part of the public is provided; however, customized tax, investment, legal, and other business and professional advice is not provided. Whenever possible, you should get counsel from an expert who is familiar with your specific circumstances before taking any action.
Maximize your tax refund with these 11 tips
Your taxes are due in the spring, which is one of the less pleasant (and even a little smelly) aspects of the season. In the case of a refund, of course, this is a great surprise to get. However, if you are not, things are different. It is possible to optimize your return while avoiding the most frequent mistakes individuals make in order to ensure that the majority of your return goes to you rather than Uncle Sam. Failure to optimize your return and making mistakes might result in you paying more taxes than you should or, in the worst case scenario, underreporting your income and putting yourself at risk of interest and penalties in the future.
1. Don’t leave money on the table
Unless you spend all of your Flexible Spending Account (FSA) funds or make contributions to your individual retirement and 529 plans, you might be putting money at risk of losing it. It’s money that should have been yours. The deadline to use funds from your flexible spending account or make a contribution to a 529 plan was December 31. Contributions to 529 plans are tax deductible in several states. You have until April 15, 2019 to make contributions to your regular and Roth IRAs for the 2018 tax year.
- Limits on contributions have been raised by $500 for 2019, to $6,000 for individuals under 50 and $7,000 for those over 50.
- If you take advantage of this rise, you will be able to optimize your return even further in 2019.
- Because your income for 2018 was below the threshold for filing a return, you may be entitled to a refund even if you choose not to submit a return.
- For the fiscal year 2018, the Internal Revenue Service revealed that it has $1.1 billion in unclaimed refunds from an estimated 1 million taxpayers who did not submit a tax return in 2014.
2. Claim all available deductions, including charitable contributions
Your Flexible Spending Account (FSA) monies might be wasted if you don’t use them all, or if you don’t make contributions to your individual retirement and 529 plans. That money is yours, and you should have it. December 31 was the deadline to use funds from your flexible spending account or make a contribution to a 529 plan. Contributions to 529 plans are deductible in several states. You have until April 15, 2019 to make contributions to your regular and Roth IRAs for the 2018 fiscal year. Increase your retirement account contributions in 2019 by increasing your salary.
In previous years, the limitations were $5,500 and $6,500.
The failure to submit a federal income tax return is another prevalent way for people to lose money.
A refund is only given to those who have filed a tax return for the year in question.
If you left money on the table in a prior tax year, you have three years to file old taxes and recover any unclaimed refunds that you may have accumulated.
3. Claim nonrefundable credits too
Tax deductions are refundable benefits that can be used to offset other expenses. They are tax deductions or credits that are deducted from the amount of tax you owe the Internal Revenue Service (IRS). The Internal Revenue Service considers them to be a contribution toward your tax burden. If, when you file your return, your deductions total more than the amount of taxes you’ve already paid, you’ve overpaid and will receive money back in the form of a refund from the government. Tax credits that are not refundable include charitable contributions, the Child Tax Credit, the Earned Income Tax Credit (EITC), and the Health Coverage Tax Credit, among others.
- In essence, they cannot be used to pay more than the amount of your whole bill.
- They may, however, be able to lower the amount of your tax liability.
- The Saver’s Credit, the Child Tax Credit, the Mortgage Interest Tax Credit, and the Child Tax Credit are all examples of tax credits.
- Consider the following scenario: When you submit your taxes, you will not owe any more taxes if you owe $1,000 in taxes and have paid it in full through your paychecks.
- In addition, you will not be entitled to a refund.
- The credit is non-transferable and non-refundable.
- In a similar vein, if you owe $1,000 in taxes but only paid $950 through your paychecks and then receive a Mortgage Income Tax Credit of $100, you will not owe any further taxes when you file.
- You will also not be eligible for a $50 refund.
- The IRS will determine that you overpaid and will provide you a refund for the credit.
4. Don’t be greedy
It’s possible to become so preoccupied with the task of lowering your taxes that you begin to make terrible judgments. Shopping around for the largest refund, for example, may lead you to a tax “expert” who employs erroneous or aggressive accounting techniques, a risk that is not worth taking. You could be inclined to be too aggressive when it comes to deductions as well. Example: Home-office deductions and unreimbursed business costs are frequently exploited and misunderstood by individuals.
You should be certain that you are up to speed on the most recent tax regulations and that you actually qualify for the home office deduction.
5. Use the best filing status
What is the optimal filing status for you? A typical source of misunderstanding and an undetected error is not understanding what it is. If you work with a tax preparer, make sure to inform them of any significant life events, such as getting married or divorcing, that occurred. Your relationship status on December 31 affects your filing status for the whole year, and it is this status that you must use when completing your tax return for the following year. The filing status of the Head of Household is the one that generates the greatest misunderstanding.
Remember that if you’re single and qualified, you’ll be able to take advantage of a bigger standard deduction than you would if you filed as a single person, which might result in a higher return.
For example, even though you’re married, you can compute your taxes using both the Married Filing Jointly status and the Married Filing Separately status when calculating your taxes.
Some professional tax agencies will even perform the double computation for you if you so choose.
6. Report all of your income
This omission, whether deliberate or unintentional, may be quite expensive. If the Internal Revenue Service discovers that you have unreported income, you will be subject to interest and penalties for unpaid taxes. Spend a few additional minutes examining your return, going through the year and your accounts to ensure you haven’t forgotten about any revenue sources. An honest error will not be forgiven in this situation, so be thorough. 1099 income, such as contract labor, is frequently disregarded, despite the fact that it is tax deductible.
You should be aware that these paperwork will be sent to you directly from the bank or financial institution where you are earning interest.
To be sure they aren’t just sitting there waiting for your attention, you’ll want to log in and check.
A spreadsheet with all of your tax information, such as your income sources, 1099s, charity donations, and IRA and 529 contributions, may be quite useful in the preparation of your tax return.
The likelihood of forgetting about a 1099 is reduced if it is included in your previous year’s tax information. A spreadsheet can also make the process of transferring information to your tax preparer more efficient from year to year.
7. Meet the deadlines
The deadline for filing federal tax returns for the year 2018 is April 15, 2019. If you fail to submit your taxes on time, you may be subject to interest and, in some cases, penalty fines on any taxes that are due but have not been paid by April 15, 2019. The failure-to-file penalty is a harsh 5 percent of your unpaid tax bill for each month your return is late, with the penalty increasing each month you are late. Even worse, if you fail to file and were owed a refund, you will still be subject to penalties.
They do not prolong the period of time during which you must pay!
The failure-to-pay penalty is 0.5 percent of your unpaid taxes each month, calculated on a monthly basis.
Not only can failure to pay on time result in additional money being taken out of your pocket, but a tax lien can also have a negative impact on your credit score.
Please note the following key tax-related events for your calendar in 2018:
- The deadline for filing federal tax returns is April 15, 2019. If you request for an extension, the deadline to file your 2018 federal tax returns is Oct. 15, 2019.
8. Check your math
Despite the fact that arithmetic errors and entering the wrong numbers on your tax return are among the most common—and costly—mistakes, they continue to plague the public year after year. Take your time when you’re filling out your taxes and double-check your figures and mathematics. If you use tax software that handles the calculations for you, you may avoid making many mathematical mistakes. If you have severe math difficulties, you might consider hiring a tax preparation service to complete your return.
And even if they aren’t free, if you’re bad at arithmetic, it could be worth your time to try one of them out.
An additional benefit of working with a professional tax preparer is that if you’re awarded a refund, you may be able to obtain a 0 percent tax refund advance loan in conjunction with your return, allowing you to receive your refund sooner if you so want.
9. Check your spelling
If you misspell your name, it will cause the processing of your return to take longer. Newlyweds and those who have changed their names within the last year are the most likely to have their names misspelled or spelt incorrectly. Take care to ensure that the name you provide on your tax return corresponds to the name shown on your Social Security card.
10. Check your bank account details
If you intend to receive your refund by direct deposit, double-check the bank account information you submit. If you submit incorrect account information, you will not get your refund in the manner that you had anticipated. In addition, putting things back on track might be a hassle.
11. Sign your return
It’s easy to become so preoccupied with the task of completing your tax return and filing it on time that you overlook signing it.
The same may be said about your tax preparer, who makes the same error. If you have someone else prepare your taxes, double-check that he or she has signed the document before proceeding. In addition, make certain that you sign it.
If you have to refile a tax return
If you discover that you have made a mistake after submitting your tax return, make the appropriate repairs as soon as you are aware of them. If you made a mistake on your tax return, whether it was about your filing status, dependents, income, deductions, or credits, you must file an amended return. If you need to file a corrected return, you must utilize Form 1040X, which must be completed on paper rather than electronically. Amended returns must be submitted within three years of the initial filing date, or within two years of the date on which you paid any taxes that were owing to the IRS.
Key Tax Benefits to Receive a Bigger Tax Refund
Do you dread the time of year when you have to file your income taxes? What you should keep in mind throughout tax season, to maybe make the process a little less stressful is that Three out of every four taxpayers receive a federal refund, with an average direct-deposited return of $3,116 in the previous fiscal year. Don’t you think that’s a pretty good tax refund?
Tax savings opportunities
As a result of the tax reform legislation approved in early January to escape the fiscal cliff, you have almost as many tax-saving chances as you did last year. In addition to maintaining for virtually all taxpayers the lower Bush-era income tax rates, the American Tax Relief Act made permanent or prolonged dozens of tax advantages that had previously been temporary. This year’s tax code revisions included thousands of dollars in tax advantages for working families, college students, and homeowners, to name a few categories of beneficiaries.
The child tax credit, which is worth up to $1,000 per qualified kid and is refundable for taxpayers with earned income in excess of $3,000, is worth up to $1,000 per eligible child. It is possible that working or attending school parents who pay for child care will be eligible for thechild and dependent care credit. It is possible to get up to $3,000 per qualified dependant under the age of 13 or $6,000 if you have two or more qualifying dependents under the age of 13. A tax credit for earned income is available to working individuals who earn a modest to moderate income.
Families with three or more qualifying children may be eligible for up to $5,891 in financial assistance.
College and education
Tuition and fees paid in 2014 might be deducted up to $4,000 from your taxable income. Are you paying off your college loans? You may be eligible to deduct interest payments totaling up to $2,500 made during 2014. The American Opportunity Credit, which is worth up to $2,500 per student for post-secondary tuition, fees, and course materials, is available to students who meet certain requirements.
Interested in making a contribution to a Coverdell Education Savings Account? You can exclude a maximum of $2,000 in annual donations per student from your tax liability.
Your mortgage insurance premiums paid during 2014 may be eligible for deduction if you are itemizing your deductions. It has been decided to extend the non-business energy property credit for eligible energy-efficient home upgrades (insulation, outside windows and doors, central air conditioners, water heaters, and other improvements) for the 2012 and 2013 tax years. After 2005, if you’ve claimed this credit on prior year’s tax returns, you must remove the total amount of your previous year’s claims from the $500 available for 2012.
Teachers in grades K-12 can claim a $250 deduction for out-of-pocket costs for classroom materials. You may be eligible to deduct from your gross income any perks supplied by your company, such as mass transit and parking. If you itemize your deductions and have paid for work-related education, you can claim a deduction for the expenditures you paid, less any amounts repaid by your employer. There are hundreds of additional tax benefits available for claim on this year’s federal tax returns, which are due on April 15.
Make use of a checklist to assist you identify what information you’ll want.
It’s the finest offer available in terms of taxation.
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More to explore:
- What is the Earned Income Tax Credit (EITC) and how does it work? Is there any advantage to file my tax return as soon as possible? The Tax Advantages of Making Contributions to an IRA
- 7 frequently asked questions concerning the Earned Income Tax Credit
TaxAct – Your biggest refund, guaranteed.
A total of more than 101 million income tax refunds were given in 2013, with each return averaging $2,651 in value, according to the Internal Revenue Service. Taxpayers who choose to have their refunds immediately deposited into their bank accounts received an average of a couple hundred dollars extra in their refunds. According to TaxAct spokesman Jessi Dolmage, because of tax legislation implemented in the first couple of days of 2013, averages in 2014 would most likely be comparable to those in 2013.
- For the 2017 tax year, the maximum amount of child and dependent care costs that are eligible for the credit is $3,000 for families with one child and $6,000 for families with two or more children. These enhanced amounts will remain in effect indefinitely. Kid Tax Credit- The Child Tax Credit was made permanent at $1,000 per child under the age of 17 at the end of 2013, and it will remain at that level indefinitely. This credit may be claimed in addition to the Child and Dependent Care Credit
- However, it cannot be claimed both at the same time. The ability to deduct tuition and fees as an adjustment to income is available if you, your spouse, or a dependent is enrolled in an accredited postsecondary school. This is true even if you do not itemize your deductions. Generally, you can claim this deduction if you do not qualify for a tax credit for schooling or another tax relief for the same costs. For the first four years of post-secondary education expenditures in a degree or certificate program, the American Opportunity Credit provides a maximum of $2,500 in credit for each student. Tuition, fees, and course materials are all possible expenses (books). If you do not owe any taxes, you may also be entitled to get a refund of up to 40% of the credit ($1,000) as a result of the tax credit. Disallowance of educator expenditures- Elementary and secondary educators can deduct up to $250 in relevant employment expenses as an adjustment to income, even if they do not itemize their deductions. Unlike other employee expenditures, educator expenses are not reduced by 2 percent of your adjusted gross income, as is the case with most other employee expenses. Amounts paid in mortgage insurance premiums (commonly known as PMI) may be eligible for a tax deduction as interest on a home loan. The Alternative Minimum Tax (AMT) was established in order to ensure that rich taxpayers who receive substantial tax advantages pay some amount of tax. As a result, fewer taxpayers will be liable to the tax because it will now be adjusted for inflation each year. It is anticipated that the exemption level would increase to $51,900 ($80,800 for married couples filing jointly) in 2013. It is possible to claim an exemption of $40,400 if you are married and filing separately. Credit for adoption expenses – You may be eligible for a credit for adoption expenses of up to $12,970 in total. This credit can be used to offset the costs of legal adoption of an eligible child, including court costs, attorney fees, travel expenses, and other expenses that are directly related to and for the primary purpose of legal adoption. If your employer provides adoption benefits, you may also be allowed to deduct up to the same amount from your taxable income if you meet certain requirements. It is possible to claim both a credit and an exclusion for the same adoption, but not for the same spending. In 2013, you can still deduct state and local sales taxes, as long as you meet certain requirements. You can claim either this deduction or a deduction for state income tax, but not both at the same time
As is true with most tax advantages, you must fulfill certain requirements in order to claim them on your tax return, and even if you complete the requirements, you may not be eligible for the whole amount of the benefit. Consumer tax preparation applications available online and on mobile devices make it simple to do your own taxes and confidently claim all of your deductions and credits. By answering a few basic questions, the computer automatically completes your tax forms and evaluates them for mistakes and potential tax savings.
One of the most popular options, TaxAct, even assists you in making plans for the upcoming year by providing advise on the tax consequences of the Affordable Care Act. Visit to learn more about these deductions and credits as well as to complete your federal income tax return.
Bunching to Maximize Tax Credits: Evidence from Kinks in the US Tax Schedule
Using a panel of 258 million tax returns from 1996 to 2014, we investigate the phenomenon of bunching at income tax quirks in the United States. In all, we detect bunching at seven kinks, with nearly all of the bunching happening at kinks when tax benefits are maximized. Between 1996 and 2014, the overall number of bunchers climbed at an annualized rate of 11 percent, from 134,300 in 1996 to 866,600 in 2014, according to our sample. Approximately two-thirds of these bunchers situate themselves at the one-of-a-kind position where refunds are maximized.
Jacob A. Mortenson and Andrew Whitten are co-authors of this paper. “Bunching to Maximize Tax Credits: Evidence from Kinks in the United States Tax Schedule,” will be published in 2020. The American Economic Journal: Economic Policy, volume 12, number 3, pages 402-32. Pol. 20180054 (DOI: 10.1257/pol.20180054)
- Online Appendix (279.31 KB)
- Author Disclosure Statement(s) (134.62 KB)
- Data Set (279.31 KB)
- H24Personal Income and Other Nonbusiness Taxes and Subsidies
- Covers inheritance and gift taxes
- And other taxes and subsidies. Tax Evasion and Avoidance
- H26Tax Evasion and Avoidance In this course, you will learn about fiscal policies and the behavior of economic agents in the household.
IRS efile Tax Return and Refund Statistics for All Tax Years
EFile and Tax Statistics are two examples of electronic filing systems. Tax Year 2020 tax returns had been e-filed as of October 2021, according to the Internal Revenue Service, out of a total of 167,634 million 2020 tax returns that had been filed as of the same month. This corresponds to approximately the same amount of 2019 returns that were e-filed in 2020. (152,802,000). When compared to the number of returns e-filed for Tax Year 2018 at the same period in the previous year, this represented a significant 10.1 percent rise in 2020.
Taxpayers have learned to rely on and trust electronic tax return filing as it has become increasingly widespread.
eFilers Versus Paper Filers
- The number of taxpayers in the United States who prepare and e-file their own tax returns is continuously increasing. Taxpayers self-prepared 67,259,000 tax returns by the end of October in 2021, according to the Internal Revenue Service.
- The number of taxpayers who prepared and electronically submitted their federal tax returns increased to over 72,220,000 in 2020 (for Tax Year 2019).
As of October 2021, more than 112,267,000 people had received speedier federal tax refunds via direct bank payments into their accounts using electronic transfers, according to the Internal Revenue Service. In the United States, the average tax return received by direct deposit is $2,851. Did you realize that, in the majority of circumstances, a large return is due to money you withheld from the Internal Revenue Service (IRS) throughout the year that was quite legitimately yours? Instead of earning a large tax refund a year from now, increase your salary today.
- The Internal Revenue Service provided 102,695,000 refunds by direct deposit in 2020 for 2019 returns, with an average refund of $2,622
See the IRS Data Book for 2020, which contains statistical information about 2019 tax returns.
eFile Tax Return Statistics (by Tax Year)
The data in the table below shows the total number of tax returns filed by year, the total number of tax returns that were filed electronically, or e-filed, and the percentage of tax returns that were e-filed. Returns for the Tax Year Returns e-Filed% e-Filed2020167,634,000151,681,00090 5 percent 2019169,684,000152,802,00090 2019169,684,000152,802,00090 The number one percent is 2018155,798,000138,217,00088. 2017154,444,000135,459,00087 percent 154,444,000135,459,00087 percent 2016152,235,000132,319,00087 is 7 percent of the total.
- 4 percent of the total 2014150,927,000128,784,00085 dollars.
- 2011137,200,000113,074,00082 percent 2011137,200,000113,074,00082 2010145,320,000112,203,00077 = 4% of 2010145,320,000112,203,00077 The 2009 figure is 141,376,00094,980,00067 percent.
- 1 percent of the 2006136,071,00073,255,00053 population.
- In 2004, there were 132,200,00061,507,00046 people in the world.
- 2001130,965,00040,244,00030 percent 2001130,965,00040,244,00030 percent e-Filing has grown in popularity and confidence among taxpayers over the years, accounting for 7 percent of all filings.
See this page for further information on the history of electronic filing and how it got to where it is today, as well as an IRS analysis of the 2021 Filing Season for 2020 Returns. Start preparing your taxes right away with the eFile Tax App, which handles online preparation and e-filing.
2020 Tax Season (2019 Tax Year) e-File Statistics
(Preliminary results to December 13, 2019 and December 11, 2020)
|Individual Income Tax Returns||2019||2020||% Change|
|Amount||$322.176 Bill.||$320.851 Bill.||-0.4|
|Direct Deposit Refunds:|
|Amount||$274/024 Bill.||$269.261 Bill.||-1.7|
2019 Tax Season (2018 Tax Year) e-File Statistics
(Approximate till December 13, 2019 and December 11, 2020)
|Individual Income Tax Returns||2018||2019||% Change|
|Amount||$326.333 Bill.||$320.805 Bill.||-1.7|
|Direct Deposit Refunds:|
|Amount||$273.697 Bill.||$274.253 Bill.||0.2|
2018 Tax Season (2017 Tax Year) e-File Statistics
(As of November 24, 2017, and November 23, 2018, the data is considered preliminary.)
|Individual Income Tax Returns||2017||2018||% Change|
|Direct Deposit Refunds:|
|Amount||$270.250 Bill.||$272.980 Bill.||1.0|
2017 Tax Season (2016 Tax Year) e-File Statistics
(As of April 22, 2016, and April 21, 2017, the data is considered preliminary.)
|Individual Income Tax Returns||2016||2017||% Change|
|Amount||$263.197 Bill.||$268.296 Bill.||1.9|
|Direct Deposit Refunds:|
|Amount||$234.269 Bill.||239.410 Bill.||2.2|
2016 Tax Season (2015 Tax Year) e-File Statistics
(As of December 25, 2015 and December 30, 2016, the data is considered preliminary.)
|Individual Income Tax Returns||2015||2016||% Change|
|Amount||$306.016 Bill.||$317.615 Bill.||3.8|
|Direct Deposit Refunds:|
|Amount||$254.944 Bill.||$264.822 Bill.||3.9|
2015 Tax Season (2014 Tax Year) e-File Statistics
(As of December 26, 2014, and December 25, 2015, the data is considered cumulative.)
|Individual Income Tax Returns||2014||2015||% Change|
|Average refund||$ 2,792||$ 2,797||0.2 %|
|Direct Deposit Refunds:|
2014 Tax Season (2013 Tax Year) eFile Statistics
(As of December 26, 2014, and December 25, 2015, this is a cumulative total.
|Individual Income Tax Returns||2013||2014||% Change|
|Amount||$301.836 Bill.||$305.734 Bill.||1.3%|
|Direct Deposit Refunds:|
|Amount||$245.596 Bill.||$245.088 Bill.||-0.02%|
2013 Tax Season (2012 Tax Year) e-File Statistics
(As of December 26, 2014, and December 25, 2015, the data is cumulative.)
|Individual Income Tax Returns||2012||2013||% Change|
|Amount||$309.648 Bill.||$301.863 Bill.||-2.5%|
|Direct Deposit Refunds:|
|Amount||$247.1269 Bill.||$245.464 Bill.||-0.7%|
2012 Tax Season (2011 Tax Year) e-File Statistics
(Assumed through December 26, 2014, and December 25, 2015)
|Individual Income Tax Returns||2011||2012||% Change|
|Amount||$293.263 Bill.||$288.151 Bill.||-1.7%|
|Direct Deposit Refunds:|
|Amount||$226.061 Bill.||$232.312 Bill.||+2.8%|
2011 Tax Season (2010 Tax Year) e-File Statistics
(As of December 26, 2014, and December 25, 2015, the data is considered cumulative.)
|Individual Income Tax Returns||2010||2011||% Change|
|Amount||$318.529 Bill.||$309.648 Bill.||-2.8%|
|Direct Deposit Refunds:|
|Amount||$246.080 Bill.||$247.209 Bill.||+0.5%|
2010 Tax Season (2009 Tax Year) e-File Statistics
(As of December 26, 2014, and December 25, 2015, this is a cumulative total.
|Individual Income Tax Returns||2009||2010||% Change|
|Amount||$315.290 Bill.||$326.125 Bill.||3.4%|
|Direct Deposit Refunds:|
|Amount||$220.250 Bill.||$237.444 Bill.||7.8%|
By utilizing eFile and selecting direct deposit, you may reduce the number of unclaimed checks and receive your tax return more quickly. TurboTax ® is a trademark of Intuit, Inc. and is used under license. HRB Innovations, Inc. owns the trademark H R Block ®, which is a registered trademark of the company.