Most of you must have filed your 2018 taxes by the April deadline. Hence, it must be frustrating for you if, despite your diligence of filing all your taxes on time, you are still facing some issues in getting your returns processed. Of course, it is possible that due to some unavoidable and unforeseeable circumstances you have not been able to pay the tax amount and now you are swamped with a huge tax bill.
There could be a myriad of reasons due to which you might be burdened! This blog lists out some of the most common issues taxpayers face after filing their returns and what could be some of the possible remedies in such instances.
Awaiting a tax refund but don’t know the timeline or amount?
The IRS provides various exemptions on federal tax returns to U.S. citizens and resident aliens. Such exemptions make taxpayers eligible for tax returns and reduce their tax burden.
If you are eligible for such a refund but have no clue about the timeline or the approved amount of refund, then we are here to help.
Use the ‘Where’s My Refund?’ tool on the IRS website or the IRS2Go App to check the status of your tax refund. You can get all the information you need on your tax refund through this tool by using the first Social Security Number on your tax return, the filing status and the expected refund amount.
For those of you who cannot access the IRS website or the IRS2Go App, you may call on 800–829–1954 to check the status of your tax refund.
Note: The tool is updated once daily. So, just wait for the next day, if you don’t see an update on your refund status.
How to avoid a year-end unexpected tax bill?
For those of you who haven’t checked the amount of tax withholding on your incomes, need to do so right away. A Tax Withholding is the amount of tax that your employer withholds from your salary.
You need to do this Pay Check-up to be sure that your employer is withholding the right amount of tax from your income which can save you from either an extra deduction or a short deduction — which might serve you an unexpected tax penalty anytime.
You may do this Pay Check-up by using the IRS Withholding Calculator, which can help you ascertain the right amount of tax withholding on your paycheck.
You can use the result received from this calculator to fill the Form W-4 and adjust your income tax withholding with your employer.
For individuals who receive a pension, they may use the result of this calculator to complete the Form W-4P to avail tax exemption.
Still, owe full or a part of your taxes?
There are many payment options available for taxpayers who have not paid their taxes in full or have defaulted on their 2018 returns. You have various options available to find out the pending amount, clear your dues or request an extension or waiver. Many of them are as follows: –
1. You may make the payment on the IRS website through Direct Pay (Bank Account) or by using your Debit or Credit card. Using the Debit or Credit card may cost you an extra processing fee.
2. The best option for business and for making large payments is the Electronic Federal Tax Payment System (Enrolment required).
3. In case you are e-filing then you can use Electronic Fund Withdrawal to pay for your tax debt.
4. You can make the payment by check or money order.
5. Contact a retail partner in case you want to pay your tax dues in cash.
6. If you can’t pay for your taxes in one shot, then you may apply for a payment plan. Qualifying for a payment plan will enable you to pay your tax dues in instalments.
7. If you are unable to pay your taxes in full, then you may also apply for an offer in compromise. If qualified, then you can get a chance to settle your tax debt for less than the full amount.
8. Or, you may request the IRS to temporarily delay the tax collection until your financial situation improves.
Made a mistake while filing your returns? Find out the course of action to correct it.
To err is to human is a correct saying. Don’t worry if you have somehow made a mistake while filing your tax returns.
Tax returns can be amended through filling the Form 1040-X but only on paper. But before you begin, you would first need to ensure if you are required to file an amended return at all. The following are the common mistake committed by taxpayers while filing their tax returns: –
1. Mathematical Errors
2. Error in Filing Status
3. Error in Income
4. Missing Deductions and credits
5. Missing supporting documents
You may use the Interactive Tax Assistant to ascertain if you need to file an amended return. You would not be required to file an amended return to correct a mathematical error or if you missed attaching a schedule or a form. In case, there is a mathematical error, the IRS corrects it and inform you through mail. Similarly, in case of a missing schedule or form, you would receive a mail from the IRS asking for the missing documents.
Note: If you are expecting a refund on your original tax returns then do not file for an amended return until your original return is processed.
Planning and filing your taxes with precision is very important. A little knowledge can be your biggest tool to save yourself from the federal taxes that run jitters down every American’s spine. Remember. There are many options available for taxpayers who have defaulted on their tax returns. The penalty and interest rate on such delay is piling by day, and it is something you don’t want to deal with. The experts from My Tax Filer are here to guide you about your tax woes and save you from the piling tax dues and penalties.
For more such tax news and updates, stay tuned with MyTaxFiler. We also provide a one-stop solution for all your tax-related woes. Simply drop a mail at firstname.lastname@example.org or call us at (888)-482–0279 for an on-call consultation.