Federal income tax returns are due each April, usually by April 15th. There are exceptions now and then.
Federal income tax returns are due each April,
usually by April 15th. There are exceptions now and then. In 2011, for example, the deadline for filing income taxes was extended to April 16th, because the 15th fell on a Sunday. There are some basic pieces of information that everyone should know about filing federal income tax.
Free Assistance for Uncomplicated Returns
In most cities, the Volunteer Income Tax Assistance program provides free assistance to people who are filing 1040-A or 1040-EZ forms, or, in some cases, a 1040 with a single job and no deductions. In some cities, the free assistance is limited to senior citizens or to those with low incomes. Check in your community to see what kind of income tax assistance is available. The tax assistance is provided by trained volunteers rather than by a CPA (certified public accountant).
Request Paper Forms
In the old days, tax forms were delivered by the U.S. Postal Service. The government no longer mails out paper income tax return forms. If you want a paper form to fill out for your tax return - and you are not having your income taxes prepared by a professional - you can call the IRS at 1-800-TAX-FORM or place your order at www.irs.gov. It may take up to two weeks for your forms to arrive, so be sure to order them in plenty of time. If you need commonly used forms, you can pick them up from your local post office.
File Even If You Were Unemployed
If you received unemployment benefits or severance pay, you still must file your income tax returns because those are considered taxable income. Keep in mind, though, that there are still a number of credits and deductions available to reduce the amount of tax you owe.
Take the Earned Income Credit
If you make less than about $48,000 from wages, self-employment or farm income, you may be eligible for the earned income tax credit, which is a refundable tax credit. According to the IRS, one in five taxpayers who are eligible for the credit do not take it. If you choose a professional tax preparation firm, you are less likely to miss out on income tax deductions and credits to which you are entitled.
Double Check for Errors
Every year, the IRS rejects millions of income tax returns because of simple errors that could have been easily caught. Check to make sure that you haven't transposed numbers, that your math is correct and that your Social Security number is correct. Check names, addresses and birth dates of all dependents on your return. Any of those errors can delay your income tax refund.
Rely on a Professional
A certified public accountant with experience in doing taxes will know deductions and exemptions that you may not have considered. Unless you have a very simple tax return, it's nearly always worth your while to pay a professional tax preparation service to do your taxes for you.
Back Taxes
The IRS is aggressively trying to collect back taxes. As part of that effort, they have new policies to make it easier for individuals and small businesses to pay those taxes and avoid tax liens. Talk to your income tax professional about ways to avoid tax liens through installment agreements or waived penalties. It feel like the weight of the world is lifted off your shoulders when you get caught up on your income tax responsibilities and are able to move forward with a clean slate.
