- Tax Day 2019, the last day to file your 2018 tax return, is Monday, April 15.
- The IRS began accepting tax returns on January 28.
- The new tax law is in effect, so there are a few changes to be aware of when filing your taxes.
- Tax refunds typically arrive within three weeks of filing, and the IRS recommends receiving it via direct deposit.
The deadline to submit your tax return in 2019 – or file an extension with the IRS– is Monday, April 15.
If you live in Maine or Massachusetts, you get an extra two days to file taxes because of holidays.
You can file your taxes for free if you know where to look
Many online tax services allow you to file your federal taxes for free – and sometimes state taxes as well – if your income was less than $US66,000 in 2018. You can check your options using the IRS Free File lookup.
You can also download the IRS2Go app to find free tax-filing assistance, check your refund status, or make a payment.
You can still file for free if you make more than $US66,000, but to do so, you’ll need to use the Free File Fillable Forms. The IRS recommends using those forms only if you have experience preparing tax returns on your own.
You should receive all of your tax documents by early February
Before you file your taxes, you need to collect all your 2018 tax documents. If you’re an employee, that means your W-2; if you’re a freelancer, you may have multiple 1099 forms. In some cases, you may have other statements, such as income earned from an interest-bearing savings account or interest paid on a loan, or even taxable bitcoin gains.
Most tax-related documents must be filed by your employer or other institution by January 31, and the statements must be postmarked by that date as well. That means you should have received everything you need by early February.
In the meantime, you can estimate your tax refund for this year using an online tax calculator.
Withholding tables changed under the new tax law. Some filers may owe taxes, while others could see a bigger refund.
Your tax situation can change over time – for example, if you get married, buy a home, or have a child – so it’s always a good idea to review your W-4 tax-withholding form at the start of a new year. With the new tax law this year, it’s even more important.
President Donald Trump changed the US tax code for the first time in 30 years when he signed the Republican tax bill into law in December 2017. The changes – including new tax brackets and modified tax deductions – went into effect on January 1, 2018. Employees should have noticed a difference in their take-home pay.
The IRS says it has worked with payroll providers to make the change as seamless as possible for taxpayers, but refunds may be different for some taxpayers this year and some may owe an unexpected tax bill if they didn’t review and adjust their withholding, according to the IRS.
According to the New York Times, a Treasury Department analysis provided to the Government Accountability Office estimated that compared to last year, about 4 million fewer filers will receive refunds this year, while about 4 million more filers will have a balance to pay on their taxes due to the new withholding system.
Meanwhile, a team of UBS analysts projected that most married filers with two children would see a pretty sizeable boost in their refunds for 2018 compared to 2017, especially those making under $US40,000 a year and those making between $US125,000 and $US400,000.
Some tax deductions have changed under the new law as well. The standard deduction will nearly double and some itemized deductions have changed. You can see a full list of changes on the IRS website.
The IRS recommends e-filing and choosing direct deposit
The IRS says the fastest way to get your tax refund is the method already used by most taxpayers: filing electronically and selecting direct deposit as the method for receiving your refund.
The IRS says direct deposit – which the government also uses for Social Security and Veterans Affairs payments – is “simple, safe, and secure.”
Popular online tax services like TurboTax and H&R Block are easy to use, even for tax novices – but they aren’t the only option for e-filing your taxes for free. If you plan to visit an accountant, make an appointment early to avoid the rush.
You should receive your tax refund within 21 days of filing
Your tax refund should hit your bank account within three weeks of filing online, assuming you opt to receive it via direct deposit. Often, you’ll get your money even faster.
You can check the status of your tax refund using the IRS’s return-tracking service24 hours after filing your tax return online or four weeks after mailing a return.
If you owe taxes, you don’t have to pay all at once
Regardless of when you file your tax return, your 2018 tax bill is due April 15. You can file early and schedule a payment for that day (or anytime before) if you aren’t quite ready to pay.
But, if you can’t afford to pay your tax bill in full, don’t pull out your credit card or ignore the situation. The IRS offers reasonable payment plans at much lower interest rates than most banks. You may even be able to settle the bill for less than you owe, called an offer in compromise, or request a deferment until you can make a payment.
Keep copies of your old tax returns for at least 3 years
You don’t have to save your tax returns forever. The IRS recommends holding onto copies for at least three years – the typical length of time the IRS would look back if you happen to get audited.
Most audits cover returns filed over the past two years, but the IRS can go back further if the situation calls for it. But audits shouldn’t be cause for worry for most taxpayers. Fewer than 1% of tax returns are audited by the IRS.
When you dispose of old tax returns, make sure to properly shred the documents to protect against identity theft.
What to do if you’ve been a victim of tax fraud
Tax season presents plenty of opportunity for would-be identity thieves. A stolen Social Security number can be used to file a fraudulent tax return and refund request, but it’s not the only tax scam out there. The IRS keeps track of the most common tax-related crimes, and the list is long and varied.
If you think you are a victim of identity theft or tax fraud, you should report it to the Treasury Inspector General for Tax Administration. The IRS also has detailed instructions on what to do if you are a victim of tax fraud.
The US Department of Justice says the IRS never discusses personal tax issues through unsolicited emails or texts, or over social media. Be wary if you are contacted by someone claiming to be from the IRS who says you owe money. When the IRS needs to get in touch with a taxpayer, standard practice is to send a letter via the US Postal Service. If you receive an unexpected and suspicious email from the IRS, forward it to [email protected].
- Read more of our 2019 Tax Day coverage:
- How to figure out if you should do your own taxes or hire a pro
- You may be able to cut down your tax bill with a little-known credit if you saved for retirement this year
- 10 things you probably didn’t know you could deduct on your taxes
- Getting a huge tax refund can be a costly mistake – here’s why a financial planner would rather get a bill