Even though it might seem like we have plenty of time to file, there are good reasons to get your taxes done early.
"One major change for 2016 is a higher penalty for not having health insurance, which is a fee called the individual shared responsibility payment", said Nancy Granovsky, Texas A&M AgriLife Extension Service family economics specialist, College Station.
If you're still not sure whether to itemize, Greene-Lewis points out that you don't have to pay an accountant hundreds of dollars to get the answers.
"This is unless they qualify for an exemption", she added. Go to IRS.gov and click on the "Filing" tab for more information.
This is the past year for private mortgage insurance, mortgage debt forgiveness, a tuition and fees deduction, and non-business energy credits. The hit to personal-consumption expenditure this month could reach almost 2%, while cautioning that any weakness would be short-lived and reversed after households eventually receive the refunds associated with the Earned Income Tax Credit and Additional Child Tax Credit.
The delay, created by the Protecting Americans From Tax Hikes (PATH) Act of 2015, is meant to prevent fraud.
Taxpayers eager to know when their refund will be arriving should use the "Where's My Refund" tool rather than calling and waiting on hold or ordering a tax transcript. My income dropped way down when I retired last year in 2016, so I'm wondering if I need to even file a tax return this year.
She also says that filing earlier makes it more hard for someone else to use your identity.
Few people are eager to prepare their tax return, but the sooner you do it, the better, if you're in line for a tax refund. While taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications and to help with tax preparation they should use "Where's My Refund?" to check the status of their refund.
Seventy percent of the nation's taxpayers are eligible for IRS Free File.
Plus, a tax expert's advice is worth the extra expense for simple peace of mind. For 2016, this deduction begins to be reduced for married tax filers with AGI over $130,000 ($65,000 for single and other filers). For example, single people who have one source of earned income and don't own any property probably won't need a tax pro to find hidden credits or deductions. "But a refundable credit will allow you to get money back in the form of a refund".
You can access this tool at IRS.gov/filing - click on "Do you need to file a return?" under the Get Ready tab.
"The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days". The IRS encourages taxpayers to file as they normally would. "The tax software does the math and modern encryption measures protect the information".
"Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund". And like the HSA above, you still have time to do this: The account can be set up and the contribution made by the filing date of your return. "The IRS wants to make sure that the W-2s that are coming in are correct and that they have time to make sure there is no theft", Martinez said.