2017 Income Tax Season: Last-Minute Tips For Filing Your Returns

HUDSON VALLEY, NY — Early-bird taxpayers have already collected their income tax returns, while procrastinators have an extra weekend to submit their tax returns in 2017. Because of a holiday in the nation’s capital, the filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date, which falls on a Saturday.

The Internal Revenue Service says that normally would push the filing deadline to the following Monday, April 17, but Washington, D.C., will celebrate the legal holiday of Emancipation Day on Monday, April 17.

That, in turn, pushes the federal tax deadline to Tuesday, April 18, for the nation.

And for those who won't be ready to file on time, the deadline for filing an extension is also April 18.

The Internal Revenue Service said that it successfully started accepting and processing 2016 federal individual income tax returns on schedule on Jan. 23. More than 153 million returns are expected to be filed this year. IRS officials expect more than 70 percent of taxpayers to get tax refunds this year. In 2016, 111 million refunds were issued, with an average refund of $2,860.

A new law required the IRS to hold refunds claiming the Earned Income Tax Credit and the Additional Child Tax Credit until Feb. 15 in an effort to detect fraud, and it took several days for these refunds to be released and processed through banks. Once you add in weekends and the Presidents Day holiday, the IRS says many affected taxpayers did not have access to their refunds until the week of Feb. 27.

SEE ALSO: Beware Aggressive Tax Scams: Lowey, IRS Warn Hudson Valley Residents, Businesses

John Breyault with the National Consumers League urges taxpayers to claim the tax credits to which they are entitled.

“For families claiming the Earned Income Tax Credit or the Additional Child Tax Credit, a tax refund can account for as much as 30 percent of their annual incomes, making any delay in getting that refund a source of stress," Breyault said in a news release. "Currently, only four out of five eligible taxpayers claim the EITC every year. That means 20 percent of those eligible are potentially missing out on thousands of dollars in tax credits that they’re owed. These folks work hard. They should find out whether the EITC can work just as hard for them.”

New Yorkers can check the status of their refund by clicking here.

Free Filing Options

Here are some tax tips, recommended by the National Consumers League, to help reduce the risk of tax ID fraud, save money on tax preparation, and get help navigating the delay.

• Those who generally make $54,000 or less may qualify for free tax preparation assistance from Volunteer Income Tax Assistance programs in their community. These programs are staffed by IRS-certified volunteers who can help consumers navigate the delay and keep 100 percent of their refund.
• There is an online option available through the IRS’s Free File Program. The program is available to more than 70 percent of all taxpayers (anyone making $64,000 or less) and gives consumers access to name-brand tax filing software from some of the biggest names in the tax prep business.

The IRS began accepting electronic tax returns Jan. 23, with more than 153 million individual tax returns expected to be filed in 2017. Four out of five tax returns will be prepared electronically using tax return preparation software.

Many software companies and tax professionals accepted tax returns before Jan. 23 and then will submit the returns now that the IRS system is open. The IRS will begin processing paper tax returns at the same time.

Employers had to have W-2 forms in the mail by Jan. 31. If you don’t have your forms by that date or soon after, or if your forms aren’t correct, contact the IRS, but not until after Feb. 14, according to Forbes. So on Feb. 15 or later, you can call the IRS at 1.800.829.1040. You’ll need to have your address, phone number and Social Security Number available.

Warnings on Phishing Scams

IRS officials warn taxpayers to be alert to phone and email phishing scams that try to trick victims into divulging their personal information. The IRS says it has been working with the tax industry and state revenue departments to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud.

Scammers will call or email taxpayers to verify the last four digits of their Social Security number by clicking on a link provided in an email, which claims that recent data breaches across the nation may be involved.
Government offices do not send emails like this, authorities said.

Taxpayers should not reply to emails requesting confidential information, especially your Social Security number, birth date, salary information or home address. If you receive an email asking for a copy of your W-2 form, you should immediately contact your employer.

Refunds in 2017

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. The IRS anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind.

Where's My Refund? ‎on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early Earned Income Tax Credit and the Additional Child Tax Credit refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where's My Refund? ‎or through their software packages until then.

The IRS says taxpayers should only call to check on their refund if they haven't seen it and it has been:

• 21 days or more since you filed electronically
• More than 6 weeks since you mailed your paper return

Find your local IRS office here.

Before You File

• Be sure you have all W-2s, 1099s, and other withholding information before filing your return. Don’t rely on year-end pay stub information – it may not match what your employer reports to us.
• Provide all necessary information on your return and attach all required documents and schedules.
• Be sure spelling of your name(s), Social Security number(s), and all calculations are correct.
• If you moved since you filed your last return, use your current address.

• Gather your records. Make sure you have all your tax records. This includes receipts, canceled checks and other records that support income, deductions or tax credits that you claim. If you purchased health insurance through the Marketplace, you will need the information in Form 1095-A to file.
• Report all your income. You will need to report your income from all of your Forms W-2, Wage and Tax Statements, Forms 1099 and any other income – even if you don’t receive a statement – when you file your tax return.
• Try IRS Free File. Free File is available only on IRS.gov. If you made $62,000 or less, you can use free tax software to file your federal return. If you earned more, you can use Free File Fillable Forms, an electronic version of IRS paper forms.
• Try IRS e-file. Electronic filing is the best way to file a tax return. It’s accurate, safe and easy. If you owe taxes, you have the option to e-file early and pay by April 18 to avoid penalties and interest.
• Use Direct Deposit. The fastest and safest way to get your refund is to combine e-file with direct deposit. The IRS issues more than nine out of 10 refunds in less than 21 days.
• Review your return. Mistakes slow down your tax refund. If you file a paper return, be sure to check all Social Security numbers. That’s one of the most common errors.
• Visit IRS.gov. The website has forms and other info you need to file your tax return. Click on the "Filing" icon for links to filing tips, answers to frequently asked questions and IRS forms and publications. The IRS has many online tools on IRS.gov to help you file and answer your tax questions. The tool gives the same answers that an IRS representative would give over the phone.

Email Phishing Scam Alert

The IRS and state tax agencies are warning about an email scam that uses a corporate officer’s name to request employee Forms W-2 from company payroll or human resources departments. This week, the IRS has received new notifications that the email scam is making its way across the nation for a second time.

Company payroll officials are urged to double check any executive-level or unusual requests for lists of Forms W-2 or Social Security number.

When the W-2 scam first appeared last year, cybercriminals tricked payroll and human resource officials into disclosing employee names, SSNs and income information. The thieves then attempted to file fraudulent tax returns for tax refunds.

The “spoofing” e-mail will contain, for example, the actual name of the company chief executive officer. In this variation, the “CEO” sends an email to a company payroll office or human resource employee and requests a list of employees and information including SSNs.

The following are some of the details that may be contained in the emails:

• Kindly send me the individual 2016 W-2 (PDF) and earnings summary of all W-2 of our company staff for a quick review.
• Can you send me the updated list of employees with full details (Name, Social Security Number, Date of Birth, Home Address, Salary).
• I want you to send me the list of W-2 copy of employees wage and tax statement for 2016, I need them in PDF file type, you can send it as an attachment. Kindly prepare the lists and email them to me asap.

Help for Taxpayers

Volunteer Income Tax Assistance and Tax Counseling for the Elderly offer free tax help to people who qualify. Go to irs.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider.

The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice about the ever-changing tax code. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov.

By law, all paid tax preparers must have a Preparer Tax Identification Number, or PTIN. Paid preparers must sign the return and include their PTIN. The IRS offers tips to help taxpayers choose a tax return preparer wisely. The Choosing a Tax Professional page has information about tax preparer credentials and qualifications. The IRS Directory of Federal Tax Return Preparers with Credentials and Select Qualifications can help identify many preparers in your locality by type of credential or qualification.

The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2015 tax return in order to file electronically. The Electronic Filing Pin is no longer an option. Taxpayers can visit IRS.Gov/GetReady for more tips on preparing to file their 2016 tax return.

Renewal Reminder for Individual Taxpayer Identification Numbers (ITINS)

ITINs are used by people who have tax-filing or payment obligations under U.S. law but are not eligible for a Social Security number. Under a recent change in law, any ITIN not used on a tax return at least once in the past three years will expire on Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) will also expire next month.

This means that anyone with an expiring ITIN and a need to file a tax return in the upcoming filing season should file a renewal application in the next few weeks to avoid lengthy refund and processing delays. Failure to renew early could result in refund delays and denial of some tax benefits until the ITIN is renewed.

An ITIN renewal application filed now will be processed before one submitted at the height of tax season from mid-January to February. Currently, a complete and accurate renewal application can be processed in as little as seven weeks. But this timeframe is expected to expand to 11 weeks during tax season.

Several common errors are currently slowing down or holding up ITIN renewal applications. The mistakes generally center on missing information, and/or insufficient supporting documentation. ITIN renewal applicants should be sure to use the latest version of Form W-7, revised September 2016. The most current version of the form, along with its instructions, are posted on IRS.gov.

Written by Deb Belt (Patch Staff) with additional reporting by Michael Woyton/Patch Staff.

Image via Shutterstock.