Not too early: Here are steps taxpayers can take now to get ready to file their taxes in 2019

The IRS reminds taxpayers there are steps they can take now to make sure their tax filing experience goes smoothly next year. Taking these steps will also help them avoid surprises when they file next year.

To help get people the information they need, the IRS just updated a special page on IRS.gov with steps to take now for the 2019 tax filing season.

Check withholding – do a Paycheck Checkup soon
Since employees typically only have one or two pay dates left this year, checking withholding soon is especially important. Because of the many changes in the tax law, refunds may be different than prior years for some taxpayers. Some may even owe an unexpected tax bill when they file their 2018 tax return next year. To avoid these kind of surprises, taxpayers should do a Paycheck Checkup to help  them decide if they need to adjust their withholding or make estimated or more tax payments now.  

Gather documents
The IRS urges all taxpayers to file a complete and accurate tax return by making sure they have all the needed documents before they file their return. This includes their 2017 tax return and:

• Year-end Forms W-2 from employers,
• Forms 1099 from banks and other payers and
• Forms 1095-A from the Marketplace for those claiming the premium tax credit.

Taxpayers should confirm that each employer, bank or other payer has a current mailing address or email address. Typically, these forms start arriving by mail – or are available online – in January. Check them over carefully, and if any of the information shown is inaccurate, the taxpayer should contact the payer right away for a correction.

Taxpayers should keep a copy of any filed tax return and all supporting documents for at least three years. Also, taxpayers using a software product for the first time may need the adjusted gross income amount from their 2017 return to properly e-file their 2018 return.

Choose e-file and direct deposit for a faster refund
Electronically filing a tax return is the most accurate way to prepare and file. Errors delay refunds, and the easiest way to avoid them is to e-file. Using tax professional is the best and simplest way to file a complete and accurate tax return. Combining direct deposit with electronic filing is the fastest way for a taxpayer to get their refund. With direct deposit, a refund goes directly into a taxpayer’s bank account. They don’t need to worry about a lost, stolen or undeliverable refund check.

Five things for extension filers to remember

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Oct. 15 is almost here, and it’s the last day to file for most people who requested an automatic six-month extension for their 2017 tax returns. These taxpayers should remember that they can file any time before Oct. 15 if they have all their required tax documents. They can also pay their tax bill in full, or make a partial payment, anytime, by visiting IRS.gov/payments.

As extension filers prepare to file, here are some things they should know:

• A refund may be waiting.  Anyone due a refund should file as soon as possible to get their money. The sooner someone files, the sooner they’ll get it. Don’t forget to use Direct Deposit. It is the best and fastest way for taxpayers to get their tax refund electronically deposited for free into their financial account.
  
  
• They should consider IRS Direct Pay.  Taxpayers who owe taxes can pay them with IRS Direct Pay. It’s the simple, quick and free way to pay from a checking or savings account. Taxpayers can just click on the ‘Pay’ at IRS.gov.
  
  
• Here’s what taxpayers should do about a missed deadline. Anyone who did not request an extension by this year’s April 17 deadline should file and pay as soon as possible. This will stop additional interest and penalties from adding up. IRS Direct Pay offers a free, secure and easy way to pay taxes directly from a checking or savings account. There is no penalty for filing a late return for people who are due a refund.
  
  
• Taxpayers should remember the Oct. 15 Deadline.  Taxpayers who aren’t ready to file yet should remember to file by Oct. 15 to avoid a failure-to-file penalty. Taxpayers who owe and can’t pay their balance in full should pay as much as they can to reduce interest and penalties for late payment. They can use the Online Payment Agreement tool to apply for more time to pay or set up an installment agreement. In most cases, the failure-to-file penalty is 10 times more than the failure-to-pay penalty.
  
  
• More Time for the Military. Members of the military and others serving in a combat zone get more time to file. These taxpayers typically have until at least 180 days after they leave the combat zone to both file returns and pay any taxes due.

Taxpayers with children, other dependents should check withholding ASAP

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Taxpayers who have children and other dependents should use the Withholding Calculator on IRS.gov to perform a “paycheck checkup.” The Tax Cuts and Jobs Act, which was passed late last year, includes changes that will affect 2018 tax returns that people will file in 2019.

Doing a checkup ASAP will help taxpayers determine if they need to adjust their withholding on their paychecks. The earlier they do this, the better. The sooner someone checks it, the more time there is for withholding to take place evenly during the rest of the year. Waiting until later in the year means there are fewer pay periods to make the tax changes.

The new law made changes to the child tax credit and personal exemptions. Taxpayers should do a “paycheck checkup” to determine if the tax law changes could affect their tax situation this year. Here is an overview of the changes to the law that could affect the withholding of parents and caretakers:

Child tax credit

• The maximum child tax credit increased from $1,000 to $2,000 per qualifying child.
• Taxpayers whose income was too high to benefit from the Child Tax Credit in prior years may now find they qualify.
• The credit now phases out at $400,000 for couples and $200,000 for singles, compared with 2017 amounts of $110,000 for couples and $75,000 for singles.

Additional child tax credit

• The maximum additional child tax credit increased from $1,000 to $1,400.
• The ACTC is a refundable credit for taxpayers who owe little or no federal income tax. 

Credit for other dependents

• There’s a new $500 credit that can benefit taxpayers who support other dependents.
• The taxpayer will claim the credit when filing a tax return.
• For purposes of this new credit, other dependents include qualifying children or qualifying relatives, such as a college student or an elderly parent.

Personal exemption

• The new law removes the personal exemption that taxpayers formerly claimed for themself, their spouse and dependents.

The Withholding Calculator allows taxpayers to enter their expected 2018 income, deductions, adjustments and credits – including the child tax credit. Users can click on definitions in the calculator for help in figuring out who qualifies for these expanded credits. 

For information about how to use the calculator and how to change withholding, taxpayers can check out the IRS Tax Reform Tax Tips on IRS.gov.

Taxpayers may also need to determine if they should make adjustments to their state or local withholding. They can contact their state's department of revenue to learn more.

More information:
Withholding Calculator Frequently Asked Questions
Tax Withholding
Tax Reform page on IRS.gov

If / Then Scenarios for Taxpayers Who Get Phished

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The IRS reminds taxpayers that the agency does not initiate contact with taxpayers by email or text messages to request personal or financial information. This includes requests for PIN numbers, passwords or similar information for credit cards, banks and other financial accounts.

This is important for everyone to remember because thieves often pose as the IRS to get taxpayers to turn over personal information in a scam called phishing. Phishing is typically carried out through unsolicited emails or websites.

Here’s what a taxpayer should do if they see a suspicious communication from the IRS:

• Email
  If Someone receives an email claiming to be from the IRS that contains a request for personal information…
  Then the recipient should:

1. Not reply.
2. Not open any attachments. They can contain malicious code that may infect a computer or mobile phone.
3. Not click on any links.
4. Forward the email as-is to the IRS at phishing@irs.gov.
5. Delete the original email.

• Website
  If someone discovers a website that claims to be the IRS but the user suspects it is bogus…
  Then they should:

1. Send an email with the URL of the suspicious site to phishing@irs.gov.
2. Include a subject line of “suspicious website.”

• Text Message
  If someone receives an unsolicited text message claiming to be from the IRS…
  Then the recipient should:

1. Not reply.
2. Not open any attachments.
3. Not click on any links.
4. Forward the text as-is to the IRS at 202-552-1226. Standard text messaging rates apply.
5. If possible, in a separate text, forward the originating number to the agency at 202-552-1226.
6. Delete the original text.

If someone clicks on a link in a phishing email or text, or on a site they believe is bogus, they can visit the identity protection page for more information on steps to take to protect their information.

Share this tip on social media -- #IRSTaxTip: If / Then Scenarios for Taxpayers Who Get Phished https://go.usa.gov/xUq7V

With hurricane season underway, IRS warns of scams related to natural disasters

WASHINGTON ― With hurricane season underway, the Internal Revenue Service is reminding taxpayers that criminals and scammers often try to take advantage of the generosity of taxpayers who want to help victims of major disasters.

Hurricane season runs June 1 to Nov. 30, and taxpayers need to be vigilant of scams that will undoubtedly pop up when and if a hurricane occurs during that time.

Fraudulent schemes normally start with unsolicited contact by telephone, social media, e-mail or in-person using a variety of tactics.

• Some impersonate charities to get money or private information from well-intentioned taxpayers.
  
  
• Bogus websites use names similar to legitimate charities to trick people to send money or provide personal financial information.
  
  
• They even claim to be working for or on behalf of the IRS to help victims file casualty loss claims and get tax refunds.
  
  
• Others operate bogus charities and solicit money or financial information by telephone or email.

Help for disaster victims

Disaster victims can call the IRS toll-free disaster assistance telephone number (866-562-5227). Phone assistors will answer questions about tax relief or disaster-related tax issues. Details on available relief can be found on the disaster relief page on IRS.gov.

Donate to real charities

To help taxpayers donate to legitimate charities, the IRS website, IRS.gov, has a search feature, Tax Exempt Organization Search, that helps users find or verify qualified charities. Donations to these charities may be tax-deductible.

• Contribute by check or credit card, never give or send cash, to have a record of the tax-deductible donation.
  
  
• Don’t give out personal financial information — such as Social Security numbers or credit card and bank account numbers and passwords — to anyone who solicits a contribution.

Taxpayers suspecting fraud by email should visit IRS.gov and search for the keywords “Report Phishing.” More information about tax scams and schemes may be found at IRS.gov using the keywords “scams and schemes.”

IRS: Refunds worth $1.1 billion waiting to be claimed by those who have not filed 2014 federal income tax returns

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WASHINGTON ―Unclaimed federal income tax refunds totaling about $1.1 billion may be waiting for an estimated 1 million taxpayers who did not file a 2014 federal income tax return, according to the Internal Revenue Service.

To collect the money, these taxpayers must file their 2014 tax return with the IRS no later than this year's tax deadline, Tuesday, April 17.

"We’re trying to connect a million people with their share of $1.1 billion in unclaimed refunds for 2014,” said Acting IRS Commissioner David Kautter. “Time is running out for people who haven’t filed tax returns to claim their refunds. Students, part-time workers and many others may have overlooked filing for 2014. And there’s no penalty for filing a late return if you’re due a refund.”

The IRS estimates the midpoint for the potential refunds for 2014 to be $847; half of the refunds are more than $847 and half are less.

In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity for claiming a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2014 tax returns, the window closes April 17, 2018. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.

The IRS reminds taxpayers seeking a 2014 tax refund that their checks may be held if they have not filed tax returns for 2015 and 2016. In addition, the refund will be applied to any amounts still owed to the IRS or a state tax agency and may be used to offset unpaid child support or past due federal debts, such as student loans.

By failing to file a tax return, people stand to lose more than just their refund of taxes withheld or paid during 2014. Many low- and moderate-income workers may be eligible for the Earned Income Tax Credit (EITC). For 2014, the credit was worth as much as $6,143. The EITC helps individuals and families whose incomes are below certain thresholds. The thresholds for 2014 were:

• $46,997 ($52,427 if married filing jointly) for those with three or more qualifying children;
• $43,756 ($49,186 if married filing jointly) for people with two qualifying children;
• $38,511 ($43,941 if married filing jointly) for those with one qualifying child, and;
• $14,590 ($20,020 if married filing jointly) for people without qualifying children.

Current and prior year tax forms (such as the tax year 2014 Form 1040, 1040A and 1040EZ) and instructions are available on the IRS.gov Forms and Publications page or by calling toll-free 800-TAX-FORM (800-829-3676).

Taxpayers who are missing Forms W-2, 1098, 1099 or 5498 for the years 2014, 2015 or 2016 should request copies from their employer, bank or other payer. Taxpayers who are unable to get missing forms from their employer or other payer can order a free wage and income transcript at IRS.gov using the Get Transcript Online tool. Alternatively, they can file Form 4506-T to request a wage and income transcript. A wage and income transcript shows data from information returns received by the IRS, such as Forms W-2, 1099, 1098, Form 5498, and IRA contribution Information. Taxpayers can use the information on the transcript to file their tax return.

State-by-state estimates of individuals who may be due 2014 income tax refunds 

State or District	Estimated Number of Individuals	Median Potential Refund	Total Potential Refunds*
Alabama	17,700	$836	$18,302,700
Alaska	4,500	$898	$5,263,200
Arizona	23,800	$750	$23,496,700
Arkansas	9,500	$808	$9,726,900
California	93,600	$785	$95,745,100
Colorado	20,400	$796	$20,887,500
Connecticut	11,000	$934	$12,740,100
Delaware	4,000	$883	$4,378,400
District of Columbia	3,000	$850	$3,237,700
Florida	69,800	$865	$74,040,300
Georgia	34,800	$772	$35,006,000
Hawaii	6,200	$898	$6,830,900
Idaho	4,500	$723	$4,376,100
Illinois	39,500	$895	$43,600,000
Indiana	22,700	$878	$24,353,000
Iowa	10,500	$885	$11,083,400
Kansas	11,100	$852	$11,645,300
Kentucky	13,600	$848	$14,035,100
Louisiana	19,900	$846	$21,700,800
Maine	4,000	$804	$3,941,700
Maryland	21,800	$853	$23,773,000
Massachusetts	22,800	$935	$26,018,500
Michigan	34,100	$845	$36,505,700
Minnesota	15,800	$785	$15,832,600
Mississippi	10,200	$777	$10,291,100
Missouri	23,000	$797	$23,212,400
Montana	3,500	$808	$3,617,700
Nebraska	5,600	$806	$5,629,100
Nevada	12,000	$831	$12,663,200
New Hampshire	4,600	$917	$5,169,500
New Jersey	28,600	$928	$32,452,500
New Mexico	7,800	$831	$8,472,600
New York	53,600	$913	$60,135,600
North Carolina	30,800	$791	$30,659,900
North Dakota	3,000	$952	$3,433,300
Ohio	38,100	$826	$38,956,700
Oklahoma	17,200	$855	$18,366,800
Oregon	15,100	$747	$14,816,600
Pennsylvania	39,300	$907	$42,866,100
Rhode Island	2,900	$916	$3,217,200
South Carolina	12,000	$757	$12,023,400
South Dakota	3,000	$866	$3,075,300
Tennessee	20,300	$837	$20,967,500
Texas	108,100	$899	$121,956,100
Utah	7,800	$754	$7,831,300
Vermont	2,100	$816	$2,028,600
Virginia	27,800	$828	$29,345,300
Washington	27,000	$894	$30,423,900
West Virginia	5,200	$914	$5,875,100
Wisconsin	13,400	$774	$13,041,800
Wyoming	3,000	$973	$3,556,300
Totals	1,043,600	$847	$1,110,605,600

* Excluding the Earned Income Tax