- PERSONAL FINANCE
- TAXES
Having a wealth of online resources at your disposal at tax time can relieve some of the stress and confusion that many people face when they're dealing with their returns. Go straight to the source: the United States Internal Revenue Service has put together a surprisingly easy-to-navigate website that offers extensive instructions and information.
Don't waste your time wading through the slew of private and corporate tax websites out there, especially when your goal is to get a basic, fact-based appraisal of your tax situation and filing options.
KEY TAKEAWAYS
- The IRS website is comprehensive and easy to navigate.
- The site provides you with a link where you can pay your taxes online if you owe and you can track your refund if the IRS owes you.
- The IRS provides a comprehensive list of tax credits and deductions on the site that you might qualify to claim.
- You can access almost all necessary forms along with instructions for how to prepare them.
The Homepage
You'll find a menu at the top of the homepage that delineates each major category of information. Click on each heading for category-specific information, whether you're looking for instructions on refunds, payments, credits, deductions, or links to forms and publications.
There's also a specific page on filing that gives you a list of filing options and will advise you as to whether you even have to file a return. You'll find everything from free tax help to instructions for e-filing through commercial software and professional tax preparers.
The Search window in the upper right corner should help you if you can't find the category of help you're looking for.
Payments and Refunds
The IRS provides a can't-miss link where individual taxpayers can make their payments directly online. Another option is the Electronic Federal Tax Payment System although you have to enroll to use this site.
The "Get Transcript" tool is a handy link. It shows you both your overall balance as well as whether your payment has been posted.
You'll find answers to questions such as "What if I Don't Pay?" on the right side of the screen. The collection procedures listed on this link are complex so it’s always best to be prompt and forthright when communicating with the IRS. There are several links to information about payment plans if you can't pay your taxes in full. It doesn't hurt to look over the Taxpayer Bill of Rights to familiarize yourself with the legal rights you possess in this and other situations.
The refund screen is simple: there's a convenient link, "Where's My Refund?" You can begin to check here 24 hours after the IRS has received your e-filed return or four weeks after mailing in your paper return.
Credits and Deductions
You'll want to be sure that you're taking the correct number and type of credits and deductions to make sure you're paying the correct amount of tax. The information on this page will help you ascertain how your individual circumstances may qualify you to receive specific deductions from your income or the tax that you owe. It covers everything from business deductions to adoption credits to charitable contributions you may have made during the year.
Make sure you read the fine print in this section because it's fraudulent to claim deductions for which you don't legally qualify. But you might be surprised at what kind of deductions you unknowingly qualify for. Do you have a plug-in electric vehicle? Uncle Sam wants to reimburse you for your environmentally sound purchase if you do by giving you a qualified electric vehicle tax credit.
Forms and Instructions
You'll find all the links for the essential forms you'll need on this menu on the website, along with printable publications for those who prefer to read their fine print in hard copy form.
Forms are provided in printable PDFs and they're listed by popularity. You’ll find the most commonly used forms toward the top of the list, such as Form 1040, the Individual Income Tax Return. You can click on the link for the Interactive Tax Assistant (ITA) if you're unsure about which is the most appropriate form for you.
There's also an explanatory publication, "Which form should I use to file my taxes?" It offers a clear delineation of the differences between the various forms that are available to taxpayers.
You’ll also find the IRS Tax Withholding Estimator on this page. It can help you decide whether your withholding status with your employer is correct. You may want to increase your employer's withholding to reduce your tax balance due. You can fill out a new Form W-4, the Employee's Withholding Certificate, to give to your employer after you've used this tool.
Help and Resources
There are an abundance of helpful tools and information at the IRS.gov site and it's easy to miss taking advantage of a resource when you're not aware of its existence. The IRS.gov site also features specific resources for active military and veterans, charities and nonprofits, businesses, parents, international taxpayers, retired taxpayers, students, and the self-employed.
Victims of identity theft or tax scams, participants in the Affordable Care Act, and first-time homebuyers will all find tailored resources and assistance here at their disposal.
Some tax issues will require professional advice but the site is an excellent tax law resource for those in need of quick answers. You'll see topics ranging from "How Do I File a Deceased Person's Tax Return?" to "Is My Residential Rental Income Taxable and/or Are My Expenses Deductible?"
The IRS even caters to gamblers with a handy link for information on tax liability for gambling winnings. You're required to report your gambling winnings but you might not know that you can sometimes deduct your gambling losses. They can be included as "Other Itemized Deductions" on Schedule A of Form 1040 or 1040-SR. The IRS does stipulate that your deducted losses cannot exceed your wins.
What's the Quickest Way to Get My Tax Refund?
The fastest way to get your refund is to e-file your tax return and request direct deposit of the money to your bank account. It takes about a week's less time for the IRS to process an e-filed return rather than a paper return. Requesting direct deposit eliminates the wait for a paper check to find its way through the snail mail system.
Are There Any Special Tax Breaks for Retirees?
Taxpayers who are age 65 or over get an extra standard deduction. Single filers who are younger than age 65 get a standard deduction of $13,850 for tax year 2023, the return you'll file in 2024. This increases to $15,700 for those who are 65 or over. The standard deduction amount is regularly adjusted for inflation so it increases a bit each year.
What Are Some Common Itemized Deductions?
The IRS website lists some of the more common available itemized deductions: state and local taxes, home mortgage interest, some casualty and theft losses, a portion of medical and dental expenses that aren't reimbursed by insurance, and some charitable contributions.
But it's only worth claiming them if the total is more than the standard deduction you're entitled to claim for your filing status. Otherwise, you'd be paying tax on more income than you have to.
The Bottom Line
Preparing a tax return and paying any taxes you might owe can certainly be unpleasant but the IRS.gov website takes some of the pain or at least the complications out of this inevitable responsibility. The best and worst aspect of the site is its sheer depth and breadth of content. You’ll need time and patience to sift through it all.
It’s fairly well organized but it can help to make a written list of the questions and topics for which you need assistance. The majority of the information you seek will likely fall under one of the major headings on the IRS.gov homepage but keep in mind that the site's interactive tax assistant can also help point you in the right direction to find answers for your more complex or obscure questions.