Core Insights - The article emphasizes the importance of reviewing tax returns before submission to avoid penalties and ensure accuracy Group 1: Review Process - A thorough check for errors is crucial, even if a professional is hired, as common mistakes include inaccurate Social Security numbers and math errors [3] - Comparing this year's tax return with last year's can help identify unexpected changes and clarify any discrepancies [4] - Utilizing IRS transcripts to compare tax returns can reveal carryforwards and unused credits that may reduce tax liabilities [5] Group 2: Filing Strategies - If cash flow is an issue, filing for an installment agreement can prevent costly failure-to-file penalties [6] - Confirming bank details before submission is essential to ensure accurate processing of refunds and identity protection [7]

It’s tax season, which means we need to get in receipt documenting mode. Keeping track of receipts and accounting for everything to the last penny in a carefully laid out spreadsheet or app is a headache — but keep in mind that it’s receipts that justify getting our money back from the government when appropriate. “We remind our clients that receipts support their deductions,” said Brian Zink, CEO and founder of No Upfront Tax Relief. Read More: 5 Tax Loopholes the Ultra-Wealthy Use That Most Americans D ...

Core Insights - Many Americans, like the hypothetical individual Jeff, avoid filing taxes due to fear of penalties and fees, leading to a significant number of individuals being behind on their tax obligations [1][2] IRS Handling of Missing Tax Returns - The IRS may file a substitute return for individuals who have not filed, which is based on their assessment of income and may not account for all eligible deductions and exemptions [3] - A substitute return can result in a tax bill that may initiate the debt collection process, including wage levies and federal tax liens on various properties and assets [4] Penalties for Late Filing - Individuals who fail to file their taxes may incur a 5% monthly penalty for each late return, capped at 25% of the tax due, along with a 0.5% monthly penalty for any unpaid amounts [4] Steps to Resolve Tax Issues - Acknowledging the need to catch up on taxes is the first step towards resolution, and there are actionable steps individuals can take to get back on track [5][6]

Taxes are due April 15, but it doesn't pay to procrastinate, especially with several changes to the tax law for 2025. Miguel Burgos, CPA and TurboTax expert, offers some help on how to get organized and avoid mistakes so you can file on time and collect that refund as soon as possible. Watch the video above or read the full transcript below. Video transcript: TRACY BYRNES: Well, tax season is upon us, even though many of us are dreading it as we do every year. And so just add a little glitz. This year we ...

Core Insights - The average tax refund is $3,804, reflecting a 10% increase from the same week last year [1] - A significant majority of taxpayers are opting for e-filing, with 41,377,000 e-filers recorded so far [1] Filing Methods - The IRS is moving towards a paper-free system, with over 93% of returns filed electronically last year [3] - Taxpayers still have the option to file a paper return by downloading or requesting the correct tax forms [3] - For older adults, Form 1040-SR is available, which is designed to be easier to read [3] Completing Paper Returns - When filing a paper return, it is essential to fill out forms completely and attach all required documents, including Form W-2 and any necessary schedules [5][6] - The correct IRS filing address must be determined based on the taxpayer's state or country [7] Mailing and Tracking Returns - The IRS recommends using the U.S. Postal Service for mailing returns, especially those with payments, and suggests using delivery confirmation [8] - E-filers typically receive refunds within 21 days, while paper filers may wait six weeks or more [9][12] Refund Status and Errors - Taxpayers can check their refund status online or via an automated hotline if they filed a paper return [10] - Errors on paper returns can lead to further delays in processing and refunds [10][15] Fastest Refund Options - The fastest way to receive a refund is by e-filing and selecting direct deposit [11][14] - Taxpayers with an adjusted gross income of $89,000 or less can file for free using Free File [11][16]

Core Insights - Major life events such as marriage, home buying, and having a baby can lead to significant tax benefits and changes in tax filing requirements [2][3] Group 1: Marriage - Getting married can change tax brackets, potentially lowering the tax rate for couples with disparate incomes. For example, a couple with a combined income of $300,000 may fall into the 24% tax bracket instead of higher individual rates [4] - Marriage may also provide additional tax advantages, including a higher Earned Income Tax Credit and capital gains tax exemptions for home sales [5] Group 2: Home Buying - Purchasing a home allows for additional tax write-offs, but homeowners must itemize deductions to benefit. They can claim a SALT deduction of up to $40,000 for certain state and local taxes if their income is below $500,000 [6] Group 3: Having a Baby - New parents can receive a tax credit of $2,200 per child under 17, with up to $1,700 being refundable. Eligibility for the full credit is capped at $200,000 for single filers and $400,000 for married couples filing jointly [7]

Core Insights - Tax software is designed to simplify the filing process, but users often have concerns regarding safety, accuracy in capturing deductions, and suitability for businesses [1] Group 1: Safety Concerns - The primary concern among users is the safety of their personal and financial information when using tax software, with many companies employing encryption, multifactor authentication, and secure servers to protect data [2] - Filing paper returns does not eliminate risks, as they can be exposed to various hands during the mailing process, including postal services and IRS centers [3] Group 2: Accuracy in Capturing Deductions - Users question whether tax software will identify all eligible deductions and credits, stemming from a lack of confidence in digital platforms [4] - While tax software can help identify potential deductions, inaccuracies can occur if users input incorrect information or omit key details [4] Group 3: Suitability for Businesses - Business taxes are generally more complex and may necessitate the expertise of a tax professional, especially regarding deductions, depreciation, payroll taxes, and estimated quarterly payments [5] - Smaller businesses may initially find tax software useful, but as their financial situations become more complex, they often transition to professional services [6] Group 4: Choosing Tax Software - It is recommended to select tax software that is officially approved by the Internal Revenue Service (IRS), as this indicates compliance with stringent security and accuracy standards [7] - Many tax software programs participate in the IRS Free File program, which requires IRS approval, and reputable companies like TurboTax and H&R Block are recognized as authorized e-file providers [7]

IRS Direct File Is Dead. Free File May Not Be the Answer. - Barron'sSkip to Main ContentThis copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.---# IRS Direct File Is Dead. Free File May Not Be the Answer.## Democratic lawmakers raise questions about the efficacy of the governme ...

Core Insights - The tax filing season is characterized by stress, with a focus on quick submissions and refunds, but this approach may lead to errors and missed credits [1] - The IRS reported over 1.2 million math errors on individual income tax returns in fiscal year 2024, indicating the importance of accuracy in tax filings [1] Group 1: Tax Filing Process - Artificial intelligence, such as ChatGPT, can assist taxpayers in navigating the filing process effectively [2] - The first step in tax preparation is to confirm all income is accounted for, including W-2s and 1099 forms, and to compare these with personal records [3] - The IRS receives copies of most tax forms and checks for discrepancies, which can lead to audits if mismatches occur [4] Group 2: Deductions and Credits - Taxpayers should organize and maximize deductions by categorizing business expenses and comparing standard deductions with itemized deductions [5][6] - Homeowners should gather mortgage interest statements and property tax records, along with charitable contributions and medical expenses [6] - Reviewing tax credits is crucial, as they can significantly reduce tax bills, with common credits including the child tax credit and education credits [7] - Supporting documentation for credits, such as childcare payment records and tuition statements, should be collected [7] Group 3: Payment Verification - The final recommended step is to verify any estimated tax payments made throughout the year to ensure accuracy [8]

You have until Wednesday, April 15, 2026 to file your 2025 tax return or request an extension. Oscar Wong / Getty Images KEY TAKEAWAYS The IRS began processing tax returns on January 26. The deadline for employers to send out all W-2 and 1099 forms reporting income was February 2. Taxpayers have until Wednesday, April 15, 2026 to file their 2025 taxes or request an extension. The 2026 tax filing season has begun. Here are the key dates you need to know. During this filing season, taxpayers will n ...