2017 Income Tax Season: NY Now Accepting Returns, Offering Tips

Early-bird taxpayers can now submit their income tax returns, while procrastinators have an extra weekend to buckle down, compile and 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.

But lots of people aren't waiting.

The Internal Revenue Service said 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.

New York began processing returns the same day.

And the state Department of Taxation and Finance offered two sets of tips to follow for this filing season.

“Our goal is to make tax filing as easy as possible for all New Yorkers,” said New York State Acting Commissioner of Taxation and Finance Nonie Manion. “By following this straightforward advice and being mindful of common mistakes, taxpayers can avoid refund delays and meet their tax obligation in a stress-free way.”

Tips to follow:
1. File and pay electronically – E-filers are 20 times less likely to have an error on their returns and can receive their refunds up to twice as fast as paper return filers.

2. File for free – Taxpayers with incomes of $64,000 or less are eligible to electronically prepare and file both their federal and NYS returns under the Free File program. To prevent any unexpected charges for the state return, taxpayers should only access free options directly from: www.tax.ny.gov.

3. Use direct deposit – Have your refund directly deposited into your bank account and receive your refund up to a week faster. Be sure to double check the routing and account numbers for your account.

4. Use free tax assistance sites – Taxpayers with household incomes of $64,000 or less in 2016 can e-file their state and federal income tax returns for free at any of the Free Tax Assistance Sites statewide. Check here for updates on locations and times. Also, if your income is $54,000 or less, you’re eligible for free federal and state tax preparation by trained IRS and AARP volunteers. Visit IRS: free tax preparation to find a site near you.

5. Always file on time – To avoid penalties and interest, file on time—even if you can’t pay in full; the penalties are much higher for late filing than for late payment. 2016 tax returns are due by Tuesday, April 18.

6. Declare all income – All income for full, part-time, temporary, or supplemental employment—whether received in cash or reported on a Form W-2 or Form 1099—is subject to income tax.

7. Sign and date the paper return – You, and your spouse if you file jointly, must sign your return. If you hire a tax preparer to file your return, the preparer must sign it as well.

8. Get the credits you deserve – Income tax credits can increase your refund or reduce the taxes you owe. One of the most valuable is the Earned Income Tax Credit. Visit the Tax Departmentwebsite, www.tax.ny.gov/eitc to review eligibility requirements and see if you qualify.

9. Check your refund status online or sign up for email alerts – These are the fastest ways to get updates on your refund.

Still clinging to paper?

Make sure you avoid these common errors: double-check Social Security or ID numbers; put the withholding and estimated tax on the correct lines; use the right amount of postage; and enter the correct mailing address.

Using a tax preparer?

• The state requires him or her to give you a copy of the current Publication 135, Consumer Bill of Rights Regarding Tax Preparers prior to any discussions.
• ask for a written estimate of all fees
• ask about qualifications
• ask if the preparer will e-file your return (they're required to do that, and they are not allowed to charge extra)
• ask if the preparer will represent you if you’re audited
• Get an address and phone number to contact them throughout the whole year.

By the way, a new law requires 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 will take 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 may not have access to their refunds until the week of Feb. 27.

By Deb Belt and Lanning Taliaferro

Image via NYDTF Consumer Bill of Rights