ASAP: Taxpayers should check withholding

NSTPInternal Revenue Service (IRS), Paycheck Checkup

ASAP: Taxpayers Should Check Withholding

ASAP: Taxpayers should check withholding All taxpayers should check their withholding – also known as doing a Paycheck Checkup – as soon as possible. They should do a checkup even if they did one last year. By checking their withholding, taxpayers can make sure enough is being taken out of their paychecks or other income to cover the tax owed. Here are some things taxpayers should know about withholding and why checking it is important: Taxpayers should check their withholding as early in the year as possible. If someone still has not done a Paycheck Checkup, there’s still time to get their withholding on track. They should do a checkup ASAP. Taxpayers should also check their withholding when life changes occur. These changes include things like: Marriage or divorce Birth or adoption of a child Purchase of a home Retirement Chapter 11 bankruptcy New job or loss of job Some taxable income is not subject to withholding. People with this income who also have income from a job may want to adjust the amount of tax their employer withholds from their paycheck. This includes income from things like: Interest Dividends Capital gains Self-employment and gig economy income IRA distributions, including … Read More

IRS Activities Following the Shutdown

NSTP2019 Tax Season, Internal Revenue Service (IRS)

IRS Activities Following the Shutdown

The IRS has reopened following the end of the government shutdown, and IRS employees are working hard to resume normal operations and help taxpayers as much as possible. As the IRS resumes operations, there are some important pieces of information for taxpayers and tax professionals to keep in mind in several areas: Audits. For taxpayers and tax professionals with questions about examinations affected by the shutdown, we have Frequently Asked Questions. The IRS also had advice for taxpayers who had planned to send material to their IRS auditor but didn’t because of the government shutdown. The IRS recommended that If taxpayers have already assembled the requested material, they can immediately send the material to their auditor. “You may call your auditor to discuss any items on your document request if you need clarification,” said the IRS. “Your auditor will also be reaching out to you to re-establish contact in the next several business days. During this contact, your auditor will be able to answer questions you have and will address the time frame on when the requested information is due.” Collections. For taxpayers and tax professionals with collection issue affected by the shutdown, visit the Frequently Asked Questions. This section … Read More

IRS Announces On-Time Tax Season Opening and Projected Refund Dates

NSTP2019 Tax Season, Internal Revenue Service (IRS)

IRS Announces On-Time Tax Season Opening and Refund Dates

IRS has announced that it successfully opened the 2019 tax-filing season on Monday, January 28, 2019, as planned. Projected timing of refund payments. IRS expects the first refunds to go out in the first week of February and many refunds to be paid by mid-to-late February like previous years. IRS expects to issue more than nine out of 10 refunds in less than 21 days. However, it’s possible a tax return may require additional review and take longer. IRS’s Where’s My Refund has the most up to date information available about refunds. The tool is updated only once a day, so taxpayers don’t need to check more often. IRS also notes that refunds, by law, cannot be issued before February 15 for tax returns that claim the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC). This applies to the entire refund—even the portion not associated with the EITC and ACTC. While IRS will process the EITC and ACTC returns when received, these refunds cannot be issued before February 15. Similar to last year, IRS expects the earliest EITC/ACTC related refunds to actually be available in taxpayer bank accounts or on debit cards starting on February 27, 2019, … Read More

EITC Awareness Day 2019

NSTPEITC, Internal Revenue Service (IRS)

EITC Awareness Day 2019

R-2019-06, January 25, 2019 WASHINGTON — With today marking national EITC Awareness Day, the Internal Revenue Service wants to remind workers about the Earned Income Tax Credit and to correctly claim this important credit if they qualify. The IRS and community partners nationwide holds EITC Awareness Day each year to alert the millions of workers who may be missing out on this valuable tax credit. Partners will be sharing information and holding events across the country today and in the days ahead. “The Earned Income Tax Credit makes a big difference for working families across the country,” said IRS Commissioner Chuck Rettig. “We encourage people to carefully review the EITC instructions to see if they qualify for this important credit when they prepare their taxes. The IRS also appreciates the continued effort of our partners across the nation who share information and raise awareness about EITC for people who may qualify.” Eligible families with three or more qualifying children could get a maximum credit of up to $6,431. EITC for people without children could mean up to $519 added to their tax refund. The IRS recommends that all workers who earned around $54,000 or less learn about EITC eligibility and … Read More

ADDITIONAL TIME TO MAKE REFUND CLAIMS FOR WRONGFUL INCARCERATION EXCLUSION

NSTPInternal Revenue Service (IRS)

The Internal Revenue Service announced that wrongfully incarcerated individuals have additional time to take advantage of the retroactive exclusion from income for any civil damages, restitution or other monetary award received in connection with their incarcerations. Under the Bipartisan Budget Act of 2018, a wrongfully incarcerated individual now has until December 17, 2018, to file a related refund claim. Under the wrongful incarceration exclusion, a wrongfully incarcerated individual does not include in income any civil damages, restitution or other monetary award received that related to his or her incarceration for the covered offense for which he or she was convicted. A set of frequently-asked questions, available on IRS.gov, provides details on who qualifies for the exclusion, awards that qualify and documentation and recordkeeping requirements. To file a refund claim, an eligible individual taxpayer must file Form 1040X for each year he or she included a wrongful incarceration award in income and write “Incarceration Exclusion PATH Act” at the top of each Form 1040X. The IRS has established a special filing address for amended returns claiming the wrongful incarceration exclusion. Send these Forms 1040X, along with any supplemental documentation, to: Internal Revenue Service 333 W. Pershing Stop 6503 5th Floor Kansas City, MO 64108 Allow … Read More