A Few January Tax Tips
Posted By: Jennifer O'Neill // Jan 4, 2017
Below are a few Tax Tips to consider during January:
(1) GET ORGANZIED. Set up a collection point to store all your 2016 tax documents that you will soon be receiving (i.e. W-2's, 1099's, year-end account statements, health insurance verification, etc.) Also gather your receipts for any charity donations, mileage records for business use of vehicle and estimated tax payments records. Have all documents together so you can file your 2016 Tax Returns quickly and easily. The IRS will start accepting 2016 Tax Returns on Monday, January 23, 2017
(2) PAY ESTIMATED TAXES. The 1st deadline for Estimated Tax Deposits is Tuesday January 17, 2017. This Deposit is the 4th Deposit required for Tax Year 2016. Deadline falls on Tuesday the 17th this year due to the 15th falling on Sunday & Monday the 16th is Martin Luther King Day
(3) FILE EARLY AND POSSIBLY FOR FREE. Eventhough the opening of Filing Season is January 23rd, some filers may qualify to file early - as of Friday January 13th. If your 2016 Income is less than $64,000 (regardless of filing status) you will qualify for Free File which offers free online tax preparation plus e-filing
(4) BE PATIENT. Even if you file Returns early this season, you may find yourself waiting for your Refund. This is due to the IRS holding refunds a few extra weeks of Taxpayers who claim the Additional Child Tax Credit (ACTC) or Earned Income Tax Credit (EITC) or both. The IRS is required to hold Refunds for any Taxpayer claiming these Credits until February 15, 2017.
The reason for this delay is because the IRS is concerend some filers are faking these claims to receive larger refunds and also worried tax identity thieves are using real filers' data and credits to receive fraudulant refunds