How long will it take for you to prepare and file my tax return? +
Preparation time depends on the complexity of the return. For example, the return of someone who has multiple self-employment ventures and diverse investment income sources typically requires more preparation time than one for a person with a single job and limited investments. Regardless, you can keep preparation time to a minimum by providing all relevant records at the outset. Critical missing documents like W-2 or 1099 forms are the most common cause of return preparation delays. In general, to ensure timely filing of your return, you should set up your appointment and/or submit your records several weeks before the IRS deadline.
Is e-filing my tax return safe? +
Yes, as long as you are careful about how you do it. Reputable electronic filing platforms, including the ones used by trusted tax professionals, encrypt tax returns so that only the IRS may access the information on them. However, if you use a shared internet connection, someone could potentially steal that data before the encryption can protect it. To be safe, do not transmit tax forms using public wifi networks like the ones available in cafes, libraries or airports, unless you are using a high-quality virtual private network (VPN).
What should I do if I cannot pay the full amount of tax I owe by the deadline? +
First, stay calm, but second, do not ignore the problem. Start by paying as much as you can, as soon as you can. Then determine how much you can afford to pay per month going forward. Bring this information to a trusted tax professional, who can help you submit an installment plan proposal to the IRS to pay off your tax balance. These steps will help to minimize IRS penalties and interest charges. In addition, showing your commitment to paying what you owe will help ensure that the IRS does not escalate collection efforts.
How long will it take to get my IRS refund? +
For most returns filed electronically, the IRS issues a refund within 21 days after accepting the return for processing. However, for returns filed on paper forms, the issuance of a refund often takes six weeks or more. If you request your refund by direct deposit to your bank account, the funds will typically appear in your account within a few days after the IRS approves the refund. By contrast, requesting a check in the mail may add another two weeks or more to the refund timeline. Once the IRS accepts your return, you can check your refund status at irs.gov.
Is getting a big IRS refund in the spring the best possible tax outcome? +
Not necessarily. Finding out that you are owed a sizable tax refund can certainly be quite a thrill, but that outcome actually means you significantly overpaid in tax throughout the previous year. In other words, you have been cheating yourself out of precious take-home pay. Requesting a withholding adjustment or reducing your estimated tax payments might give you some welcome budgetary breathing room going forward.
Will working with a tax professional help me get a larger tax refund? +
It's possible. Even seemingly simple IRS rules have dozens of exceptions and technical nuances. Due to the resulting confusion, many people miss out on deductions and credits that they qualify to claim, and overpay in tax as a result. A trusted tax professional can sift through all the details to help ensure that you receive every tax benefit you deserve. For these reasons and many others, people who seek professional assistance with their taxes often get larger refunds than they would if they filed on their own.
Can a person qualify for more than one tax filing status? +
Yes, and in fact this scenario is quite common. For example, most married couples may choose to either file a joint return (MFJ status) or separate returns (MFS status). Meanwhile, an unmarried person with at least one dependent may qualify to file under either single or head of household (HoH) status. In general, the IRS allows people who are eligible for multiple filing statuses to choose whichever one results in the least total tax.
Does an automatic 6-month IRS filing extension give me more time to pay my taxes? +
No. The automatic extension only gives you extra time to file your return. In most cases, you must still pay any tax you owe by the standard filing deadline. Failing to do so may trigger IRS late payment penalties and interest charges. To minimize or eliminate those added fees, you should generally include a payment for your best estimate of the amount of tax you owe with your extension request. Note that for people affected by adverse circumstances like natural disasters, the IRS may grant special extensions that apply to both payments and return filing.
