While many of us are thinking about the holidays more than upcoming tax deadlines, you may want to set aside a little time now. According to the IRS website, you can avoid delays in your tax refunds by following these simple steps.
- Start gathering your tax documentation now. This includes 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. If your address has recently changed, be sure all financial institutions have your correct mailing address.
- Some people with an Individual Taxpayer Identification Number (ITIN) may need to renew it before the end of the year. Doing so promptly will avoid a refund delay and possible loss of key tax benefits.
Any ITIN not used on a tax return in the past three years will expire on Dec. 31, 2017. Similarly, any ITIN with middle digits 70, 71, 72 or 80 will also expire at the end of the year. Anyone with an expiring ITIN who plans to file a return in 2018 will need to renew it using Form W-7.
- By law, the IRS cannot issue refunds for people claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC) before mid-February.
- For a faster refund, use E-File. 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. Nearly 90 percent of all returns are electronically filed.
See the full article on the IRS website.
Still confused about preparing your taxes and what you need to keep? The tax professionals at Dunn, Cooper, Adkins & Reynolds CPAs can help! Contact us today for a consultation. We work with businesses, individuals, and nonprofits.