By now, hopefully all of us know how our taxes will be filed. When remains the question for millions of taxpayers. Though many readers said they wished we posted earlier about free electronic filing options, the fact is a majority of Americans haven't filed yet. The IRS is expecting 136 million 2006 tax returns this year, and between 80 and 90 million have yet to be filed.
That stat comes from Bert DuMars, the IRS's electronic administration director, who passed along some other interesting stats with some last-minute e-filing advice for last-minute tax filers. More than half of taxpayers will file electronically this year. (Somewhere between 75 million and 80 million, compared with 19 million ten years ago.)
Tip # 1: Last minute is a little later again this year. Tax day is April 17, not April 15, because Emancipation Day (April 16) is a holiday in Washington, D.C., so the IRS is extending the filing deadline by one day. (April 15 is a Sunday.)
Tip #2: Don't forget the telephone excise tax refund. It's a one-time, one-year offer, and lots of taxpayers have been leaving it off their returns, DuMars says. It's the result of successful court cases challenging an outmoded phone bill tax. The IRS is making restitution with a one-time refund to most taxpayers, but you have to claim it. (Line 71 on your 1040 form.) Depending on the number of dependents, the refund is $30 to $60. Even people who are not required to file income tax returns are eligible for this refund; they need to use the 1040EZ-T form to do so.
Tip # 3: The IRS provides free tax preparation help from advisers in 14,000 locations across the country through community groups, including the AARP, for taxpayers who have adjusted gross incomes of less than $39,000 (individual). For more information, check out this IRS web page.
Tip #4: You'll get your refund faster if you request direct deposit. DuMars promises. Also, if you file electronically, the IRS allows you to split your refund among up to three accounts. Though, be warned, not all tax preparation software allows this. Note: The IRS does not charge for direct deposit, so don't let a tax preparation professional tell you there's a charge for direct deposit of your refund.
Tip #5: If you file electronically and you have to pay extra taxes, you can schedule the taxes to be paid on April 17 so you don't pay too early. Electronic filing has the added benefit of a written confirmation that your taxes were filed on time with the IRS. You don't get that by mailing forms the old-fashioned way.
There really is no excuse for procrastinating any longer, is there?
