2020 Tax Tips

As we move closer to the deadline of Tax Season, we wanted to share a few Tax Tips that will help you when filing your Tax returns.
 
Direct deposit for refunds

• It's free.
• It's secure.
• Taxpayers can deposit their refund into not only one, but also two or three accounts.
• Combining direct deposit with IRS e-file is the fastest way for taxpayers to receive their refund.
• When using direct deposit, there's no risk of having a paper check stolen or lost.
• The IRS uses the same system to deposit tax refunds that Social Security and Veterans Affairs use to deposit benefits into millions of accounts.

Seniors and Retirees can file their taxes for free

• Each Free File partner sets its own eligibility standards. These are generally based on income, age and state residency. All taxpayers whose adjusted gross income was $69,000 or less will find at least one free product to use.
• Taxpayers can use their smart phone or tablet to do their taxes. They just need to go to IRS.gov/freefile on their device. All Free File products are enabled for mobile devices.

 
Tax payers must only pay what they owe

• When taxpayers complete their tax returns, some of them will owe money when they file. Here's the thing…they have the right to pay only the amount of tax that is legally due.
• File for a refund if the they believe they overpaid.
• Submit an offer in compromise, asking the agency to accept less than the full tax debt, if the taxpayer believes they don't owe all or part of the debt.

Tax season stress busters straight from the IRS

• Start with IRS.gov. The IRS website is an excellent resource available 24/7. Taxpayers can click on the Filing tab for links to filing tips, answers to frequently asked questions, and IRS forms and publications. The IRS Services Guide outlines the many ways to get help.
• Use online tools. The IRS website is home to many useful online tools. One of these is the Interactive Tax Assistant, which provides answers to many tax questions. It gives the same answers that an IRS representative would give over the phone. 
• File electronically. Most taxpayers file electronically these days for its ease and convenience. The tax software uses the taxpayer's responses to complete the Form 1040 and any needed schedules. For taxpayers who filed paper returns in the past, this may be the year to consider the benefits of filing electronically. 
• Get free help. Taxpayers can use IRS Free File, Free File Fillable Forms, or get help from trained volunteers at sites around the country.
• Explore other filing options. Taxpayers have many options to file. They can self-prepare or use a tax preparer. 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.