It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
It is a daily ritual for millions of Australians, but if you have noticed the price of your morning flat white or soy latte increase, brace yourself — it is likely to get worse.
By the end of the year,...
The tax filing deadline for most Americans is April 15th. Those who haven't filed can still apply for an extension until October 15th, but taxes owed must be paid by April 15th. Many can file taxes for free through IRS Free File or Direct File. If someone owes a balance but doesn't file, they can expect penalties and interest. The IRS also suggests filing electronically for a faster refund.
If you can't pay your taxes in full by April 15th, you should still file your return and pay what you can. The IRS offers payment plans that allow you to spread out the payments over time, reducing the late-payment penalty by half. These plans can be applied for online, by phone, or by mail, and can take up to 180 days for short-term plans and up to 72 months for long-term plans.
A major update to the IRS Direct File program can now automatically import return verification information, preventing one of the most common filing errors. Direct File is now available in 12 states and accepts simple tax returns with limited income and deductions. By using Direct File, taxpayers can access their IRS account information to validate their returns before filing, making the process more efficient.
As tax season approaches, some are considering using AI chatbots like ChatGPT for help with their returns. However, experts advise caution as they may provide inaccurate answers. Despite concerns over data security and the need for personalized advice, AI chatbots can still be useful for general tax questions and education. Human tax professionals remain the most reliable source for personalized advice and error-free returns.
With tax season approaching, be cautious of scams attempting to steal personal and financial information. The IRS urges you to avoid contact from unknown sources claiming to assist with tax savings or refunds. Identity theft can lead to fraudulent tax returns, credit card accounts, or loans. If you suspect a scam, report it to the IRS or other government officials. Remember, the IRS typically contacts taxpayers by mail, not phone or email.
The IRS has already issued over 43 million tax refunds totaling $135.3 billion, with an average refund of $3,145. However, this average could change as more returns are filed. The IRS encourages taxpayers to check their refund status using the "Where's My Refund?" tool online. Despite the early refunds, only about half of the expected returns have been received, and filing for an extension can push the deadline to October 15th.
The IRS is stepping up its scrutiny of cryptocurrency. If you've traded or sold crypto, answer "yes" to the "digital assets" question on your tax return. Holding crypto for over a year can qualify you for lower capital gains tax rates. However, reporting crypto taxes can be tricky due to inconsistent or missing forms. Use personal records and seek professional help if needed. The IRS plans to introduce a standardized reporting form for digital assets in 2025.
The IRS' Direct File program, which offers free tax filing, is now available in 12 pilot states. An estimated 19 million taxpayers are eligible this season, with filing limited to simple tax situations like W-2 income and standard deductions. While Direct File is only available in certain states, most taxpayers can use IRS Free File, which has even wider eligibility criteria and allows for both electronic filings and printable forms.
To ensure prompt tax refunds, file a complete and correct tax return with information matching IRS records. Gather all necessary tax forms, including W-2s and 1099s. Verify your income and claim eligible deductions and credits, such as mortgage interest and tuition expenses. Review previous tax returns and consider life changes that may impact your return. Filing an accurate return initially is crucial to avoid delays from amended returns.
The IRS is targeting high net worth individuals with overdue tax returns since 2017. Letters have been sent to those earning $400,000-$1 million, with future expansion targeting higher earners. The IRS urges taxpayers to fulfill their obligations, warning of penalties and interest charges for non-filers. To avoid complications, individuals are advised to seek professional assistance for tax calculations and filing. This initiative aims to recover unpaid taxes from delinquent high-income earners.
Starting March 4, the IRS's Direct File program will undergo final testing in 12 pilot states. Eligible users can test the software 24/7, with testing fully opening on March 12. Space is limited and may close if the user allotment is met. The program does not currently support state returns, but users from Arizona, California, Massachusetts, and New York will be directed to state-supported tools.
The IRS is bolstering its digital currency monitoring with former crypto experts, signaling increased scrutiny for tax professionals. The agency is pursuing investigations related to unreported crypto income and gathering data through tax return questions. Upcoming regulations aim to enhance reporting in 2025, while inconsistent reporting methods persist. Taxpayers should expect heightened examination of their crypto activities as the IRS intensifies its efforts to regulate the industry.
