Category: expats

If you missed the tax deadline, these tips can help

The tax filing deadline has come and gone. If you didn’t file a tax return or an extension, but should have,  you need to take action now. Here are some tips to help you: (if you’re living abroad  you have until June 15, 2019 to file for an extension)
• There is no penalty for filing a late return after the tax deadline if a refund is due. If you didn’t file and owe tax, file a return as soon as you can and pay as much as possible to reduce penalties and interest.
• For those who qualify, IRS Free File is still available on IRS.gov through October 15 to prepare and file returns electronically.
• If you don’t qualify for IRS Free File, you can use Free File Fillable Forms to e-file. This option uses electronic versions of IRS paper forms. It does some of the math and works best for those who are comfortable doing their own taxes.
• You can get fast answers about your refund by using the Where’s My Refund? tool available on IRS.gov and through the IRS2Go mobile app. All you need is your Social Security number, tax filing status and the exact amount of your refund. Where’s My Refund? is updated no more than once every 24 hours, usually overnight, so you don’t need to check the status more often.
• If you owe taxes, you can view your balance, pay with IRS Direct Pay, by debit or credit card or apply online for a payment plan, including an installment agreement. Before accessing your tax account online, you must authenticate your identity through the Secure Access process. Several other electronic payment options are available on IRS.gov/payments. They are secure and easy to use. If you pay electronically, you’ll receive immediate confirmation when you submit your payment. Also, with Direct Pay and EFTPS, you can opt in to receive email notifications about your payments.
• If you need more time to pay your taxes, you can apply for an installment agreement with the IRS. The best way to apply is to use the IRS Online Payment Agreement tool. Once you complete the online process, you’ll receive immediate notification of whether your agreement is approved.

No matter how or when you file, you should keep a copy of your tax return and all supporting documents.

 

Courtesy of the IRS: May 10, 2019

Where’s my refund?

Taxpayers can access Where’s My Refund? anytime to track their refunds. They can find this tool on both IRS.gov and the IRS2GO app. The IRS issues most refunds in less than 21 days, although some require additional time. Agency customer service representatives can’t answer refund questions unless it has been:

  • 21 days or more since the taxpayer e-filed
  • 6 weeks or more since the taxpayer mailed their return

Also, in some cases “Where’s My Refund” may tell the taxpayer to contact the IRS.

Taxpayers can also call the automated IRS refund hotline at 800-829-1954.

Validate identity
Taxpayers who call the IRS with questions about their account should be ready to verify their identity. IRS telephone assistors may ask a series of questions to confirm the identity of callers. Many of the answers to these questions come from the taxpayer’s prior year tax return.

 

Excerpt from: IRS Tax tip 2019-09

Tax Cuts and Jobs Act Changes to Standard Deduction

Standard Deduction Chart for Most People*

IF your filing status is… YOUR standard deduction is…
Single or Married filing separately $12,000
Married filing jointly or Qualifying widow(er) 24,000
Head of household 18,000
*Don’t use this chart if you were born before January 2, 1954, or are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. See Table 7 or 8 instead at:   https://www.irs.gov/publications/p501#en_US_2018_publink1000221051

Tax Cuts and Jobs Act Changes in Tax Rates

Changes in Tax Rates
For 2018, most tax rates have been reduced. This means most people will pay less tax starting this year. The 2018 tax rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

In addition, for 2018, the tax rates and brackets for the unearned income of a child have changed and are no longer affected by the tax situation of the child’s parents. The new tax rates applicable to a child’s unearned income of more than $2,550 are 24%, 35%, and 37%.

In addition to lowering the tax rates, some of the changes in the law that affect you and your family include increasing the standard deduction, suspending personal exemptions, increasing the child tax credit, and limiting or discontinuing certain deductions.

Most of the changes in this legislation take effect in 2018 for federal tax returns filed in 2019. It is important that individual taxpayers consider what the TCJA means and make adjustments in 2018 and 2019.

 

Get a Jump on 2018 Taxes

Renew your Individual Taxpayer Identification Number (ITIN)

If you use an ITIN to file, make sure it hasn’t expired. Visit IRS.gov/ITIN for more information.

Get ready to file

The 2018 Form 1040 is a redesigned form and replaces Forms 1040A and 1040EZ.

If you file electronically, you will need your 2017 Adjusted Gross Income (AGI) to sign your return. If you’re using the same tax software you used last year, you will not need to enter your prior year information to electronically sign your 2018 tax return.

Take these actions:

Get help

Tax Reform
Learn about how the new law may affect your filing requirements.

 

 

Excerpts from IRS.gov