Category: Blog

Free File Fillable Forms are electronic federal tax forms taxpayers can fill out and file online for free, enabling them to:

• Choose the income tax form they need.
• Enter their tax information online.
• Electronically sign and file their return.
• Print their return for recordkeeping.

International filers can also share in the benefits of Free File Fillable Forms. However, international filers should use extra caution to avoid common mistakes that occur when taxpayers fill out these forms. These mistakes can lead to transmission failures, rejected tax returns or issues in creating or accessing an account.

Here are some of the common mistakes international filers make while using these forms.

Special characters, hyphens and spaces
When creating an account or entering information on a form, taxpayers shouldn’t use any hyphenates or special characters such as ñ, ü, ó, and they shouldn’t leave spaces in first or last names.

International addresses
Many forms require taxpayers to use a U.S. mailing address. Entering an international address, including military addresses, APO, DPO and FPO, may cause the return to be rejected. Unfortunately, there isn’t a universal solution for this issue.

International phone numbers

• Taxpayers should use a U.S. phone when creating an account. Filers that use international phone numbers may not be able to create, access or recover their account.
• Certain forms only accept a 10-digit number, and international filers shouldn’t use these forms if they don’t have access to a U.S. phone number.

Banks outside of the U.S.

• Direct deposit is available only for bank accounts located only in the United States.
• IRS Direct Pay requires a U.S. bank routing number.
• If the international filer has an account with an international bank that has a U.S. affiliate, the bank may be able to provide a U.S. bank routing number.

Unsupported or prohibited forms for e-filing
All taxpayers should familiarize themselves with the forms they need before starting a return. This will help them understand the information about a form and its limitations, which could prevent the taxpayer from filing electronically.

The most common instances of unsupported or prohibited forms for international filers include:

• Form 1116 – Foreign Tax Credit
• Form 2350, Application for Extension of Time to File U.S. Income Tax Return
• Form 2555 – Foreign Earned Income
• Foreign Employee Compensation form

More information:
Line-by-Line Help Free File Fillable Forms
Foreign Electronic Payments

From: IRS Tax Tip 2023-23

The Internal Revenue Service today announced Monday, January 23, 2023, as the beginning of the nation’s 2023 tax season when the agency will begin accepting and processing 2022 tax year returns.

More than 168 million individual tax returns are expected to be filed, with the vast majority of those coming before the April 18 tax deadline. People have three extra days to file this year due to the calendar.

With the three previous tax seasons dramatically impacted by the pandemic, the IRS has taken additional steps for 2023 to improve service for taxpayers. As part of the August passage of the Inflation Reduction Act, the IRS has hired more than 5,000 new telephone assistors and added more in-person staff to help support taxpayers.

Excerpt: IRS IR-2023-05, January 12, 2023

Taxpayers using a professional tax preparer should make sure they have all their information readily available before their appointment. Collecting their information and getting copies of any missing documents before taxpayers sit down to prepare their return is critical to filing an accurate tax return. Having organized records and information in hand helps prevent filing errors and will likely create a smoother filing experience.

Here’s a list of information taxpayers may need. Not all information applies to all taxpayers.

• Social Security numbers of everyone listed on the tax return.
• Bank account and routing numbers for direct deposit or information to make a tax payment.
• Forms W-2 from employer(s).
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan.
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy.
• Form 1099-INT for interest received.
• Other income documents and records of virtual currency transactions.
• Form 1095-A, Health Insurance Marketplace Statement.
• Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments.
• Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit.
• Information to support claiming other credits or deductions, such as receipts for child or dependent care, college expenses or donations.

Taxpayers can get information about their Economic Impact Payments and advance child tax credit payments through their IRS online account.
Taxpayers who don’t have their letters about their Economic Impact Payment to claim missing stimulus payments and advance child tax credit payments to claim their full child tax credit have an online option. They can log in to their IRS online account and get the information from the Tax Records tab.

For taxpayers who are married filing jointly, each spouse will need to have their own Economic Impact Payment and advance child tax credit information.

What taxpayers should do if they’re missing other documents
Taxpayers who didn’t receive a W-2 or Form 1099 should contact the employer, payer or issuing agency and request the missing documents. This also applies for those who received an incorrect W-2 or Form 1099.

If they still can’t get the forms, they can use Form 4852, Substitute for Form W-2, Wage and Tax Statement or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. If a taxpayer doesn’t receive the missing or corrected form in time to file their tax return, they can estimate the wages or payments made to them, as well as any taxes withheld. They can use Form 4852 to report this information on their federal tax return.

Find an authorized e-file provider
Taxpayers who are looking for a tax pro should use the Authorized IRS e-file Provider locator service. This is a nationwide listing is of all businesses that have been accepted to participate in the IRS e-file program. These businesses are authorized IRS e-file providers. They are qualified to prepare, transmit and process e-filed returns.

From IRS COVID Tax Tip 2022-125

Teens and young adults often go into business for themselves over the summer or after school. This work can include babysitting, lawn mowing, dog walking or other part-time or temporary work. When a teen or young adult is an employee of a business, their employer withholds taxes from their paycheck. However, when they are classified as an independent contractor or are self-employed, they’re responsible for paying taxes themselves.

Things to keep in mind:

• Everyone, including minors, must file a tax return if they had net earnings from self-employment of at least $400.
• If they owe taxes, teens and young adults should file their own tax return, even if their parent or guardian claims them as a dependent.
• Teens and young adults can prepare and sign their own tax return. There is no minimum age to sign a tax return.
• Parents can’t claim a dependent’s earned income on their own tax return.
• In addition to income tax, people who are self-employed are generally responsible for self-employment tax as well. It’s like the Social Security and Medicare taxes withheld from the pay of most wage earners.
• Teens and young adults can lower the amount of tax they owe by deducting certain expenses.

Here’s what young entrepreneurs can do to keep on top of their tax responsibilities:

Keep records. It’s good to make and keep financial records and receipts during the year. Recordkeeping can help track income and deductible expenses and provide the information needed for a tax return.

Pay estimated tax, if required. If a teen or young adult being claimed as a dependent expect to owe at least $1,000 in tax for 2022, they must make estimated payments on a quarterly basis. They should be sure to pay enough tax on time to avoid a penalty. They can use one of these forms to calculate their estimated taxes:

• Form 1040-ES, Estimated Taxes for Individuals
• Form 1040-ES NR, U.S. Estimated Tax for Nonresident Alien Individuals

If a taxpayer also has a job where tax is withheld by their employer, they can request that their withholding be increased to cover their estimated taxes from their self-employed income. That way, they don’t have pay estimated tax separately. The Tax Withholding Estimator is a great tool to help wage earners figure out how much they should be withholding.

File a tax return. When tax season rolls around, young taxpayers can review the information and forms, gather their records and e-file their tax return. When preparing to file a tax return, they should make sure to review all their records, including estimated tax they’ve already paid.

If people owe taxes, they can pay electronically through Online Account and IRS Direct Pay. Visit the Payments page of IRS.gov for the full list of payment options.

From IRS Tax Tip 2022-88