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Tips to consider this tax season
Feb 14, 2012 (The News Courier - McClatchy-Tribune Information Services via COMTEX) --
Tax return season is now officially in full swing as Alabamians prepare returns ahead of the April filing deadline.
As with all years, there are some changes filers should be aware of as they complete paperwork for Uncle Sam. The biggest change is the deadline has been moved from the traditional date of April 15 to April 17. April 15 is on a Sunday this year, and April 16 is Emancipation Day, a holiday celebrated in Washington, D.C.
IRS spokesman Dan Boone said there are other changes that filers should keep in mind, including whether they are eligible for an earned income tax credit. He said any resident that was laid off or had hours cut to part time this year could be eligible for the credit if the household income did not exceed $49,000.
"They may have worked part of the year and earned through wages, self-employment or farming," he said, adding that the credit can be as much as $5,751 for a married couple with three or more children. "We point out (the earned income credit) because when people have a reduced income, sometimes it is so low they're not legally required to file a tax return. But, you have to file to get this credit."
Another tax issue pertinent to many Limestone Countians is claiming property losses on a tax return because of the April 27 tornadoes. Residents in any county declared a federal disaster area can claim losses on their 2011 return or can file an amended 2010 return. The deadline to file an amended return, however, will be April 17.
Boone suggested residents contact a CPA or qualified tax professional to find out what option would work best for them.
Another change for technically-savvy taxpayers includes an upgrade to the IRS' smartphone application. Though you can't yet file your taxes on your phone, the updated app offers the ability to check on a refund status, follow the IRS on Twitter and receive text updates. It also enables users to watch IRS videos on YouTube and request copies of tax return transcripts.
Other issues of note regarding this year's tax season include:
--Paid tax preparers should now have an IRS-issued preparer ID number that they are to use on any individual tax returns they prepare. Later this year, the IRS will begin competency testing of registered preparers. Those who pass the test will be added to a public list of Registered Tax Preparers the IRS will compile by the end of 2012. Beginning in 2013, taxpayers will be able to use that list in choosing a qualified preparer.
--As a means of cutting costs, the IRS is no longer sending out tax forms. Boone said 85 percent of Alabamians filed electronically last year and encouraged those who don't e-file to do so. Those seeking paper forms may be able to find them at some libraries and post offices. Forms will also be available at IRS offices in Florence and Huntsville. Residents can also find paper forms at http://www.IRS.gov or by calling 1-800-TAX-FORM.
--Taxpayers whose 2011 household income was $50,000 or less, who are age 60 or over, or who have a disability are generally eligible for free tax preparation and e-filing at help sites staffed by volunteers who are IRS-trained and certified. Two sites in Athens are offering free tax help to those who meet those requirements. Tax help will be available at The First Baptist Church Activity Center at 201 East Hobbs Street from 9 a.m. to 3 p.m. on Mondays, Tuesdays and Thursdays. Help is also available by appointment only at the Department of Human Services on West Market Street. To set up an appointment, call 256-232-7207. Those who live in other counties can also call 1-800-906-9887 to find free tax help.
--Lastly, residents should be cautious and look out for tax-related scams. The IRS will never email you about your taxes. Even though the IRS has gone electronic and encourages e-filing and e-payment of taxes, the IRS will never initiate contact with you by email. Also, if you get a suspicious contact by mail, by phone or in person from someone claiming to be from the IRS and demanding payment of taxes or wanting private information, call the IRS to verify that it's authentic.
___ (c)2012 The News Courier (Athens, Ala.) Visit The News Courier (Athens,
Ala.) at enewscourier.com Distributed by MCT Information Services
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