Monday, Jan, 25, 2016
(WRDW) -- CBS Money watch says this year the IRS is taking more precaution in order to prevent tax fraud. Last year 104,000 identities were taken from the IRS website to file 13,000 fraudulent files which added up to about 39 million dollars in refunds. So with new security measures and a few other things to keep in mind while filing here are your Morning Top 5 things to know about filing taxes this year.
#5 IRS Monitoring Be Aware- This year is a first that the IRS is monitoring if you're filing from multiple devices, how long it takes you to file and whether or not your information is generated by a machine. Be aware of your activity
#4 One of the ways to prevent audits is to be aware of the limitations for standard deductions. Also knowing standard deductions for your benefit. Last year for single fillers it's up to $6,200 married couples filing together $12,400 and heads of households $9,100. Also know what you can deduct; Student loan interest, moving expenses, job Search expenses and military reserves travels expenses are a few. If you are thing you qualify for one of these deductions have your expenses itemized and ask your Tax accountant. If you're filing electronically they will ask you if you qualify for any deductions one question at a time.
#3 The obvious - File early. As always accountants and tax filers have to adjust to the extension and changes of the year. For example; Obamacare penalties are higher this year for those who didn't apply for coverage, and security changes.
#2 No Surprise but just a reminder about IRS Customer service - Out of 83 million who called last year 8 million had their calls answered, with the average wait time of 23.5 minutes. Don't get your hopes up. If you have a question I would try to refer it to a professional.
#1 Methods and Deadline - There are various methods to filling ; local offices like H&R block and Jackson Hewitt, Turbotax can be free to about $80 dollars depended on what you choose. The IRS offers free file software if you make $62,000 and below. For those who earn over that they do offer free file forms but you have to know how to do it yourself. This year the deadline has also moved from April 15th to 18th.
Sources: time.com, gobankingrate.com, Cbsnews.com