About filing your tax return
You might not have to file a return if your income is below the standard deduction threshold for 2023, which is $13,850 for single filers and $27,700 for married couples filing jointly. However, you may want to file anyway. In numerous instances, particularly for those with modest incomes, these features can raise the potential refund amount. There are a few important things to be aware of.
You might be entitled to a refund for all or part of the taxes that were “over-withheld” from your paycheck if you worked in 2023. When filling out the tax form, be sure to obtain W2 forms from each of your employers and enter that information.
The earned income tax credit
By filing a tax return, individuals who were self-employed or worked and had income under $63,698 may be eligible to receive the Earned Income Tax Credit (EITC) 1. The maximum amount you could get if you qualify for this credit is:
- $600 if you have no dependent children
- $3,995 if you have one qualifying child
- $6,604 if you have two qualifying children
- $7,430 if you have three or more qualifying children
The child tax credit (CTC)
The maximum value of the Child Tax Credit is $2,000 for each eligible child. Up to $1,500 is refundable. You have to have made more than $2,500 in order to be eligible for the CTC. 2.
Different ways to file your taxes
You can keep all of your refund money if you are one of the estimated 100 million people who can file your tax return for free by selecting one of these options.
In person full-service free tax preparation
If you meet the requirements below, you may be able to take advantage of in-person, full-service tax preparation services through the IRS Volunteer Income Tax Assistance (VITA) , AARP Foundation Tax-Aide, and The Tax Counseling for the Elderly (TCE) programs. These free programs have operated for over 50 years and use IRS certified tax preparers and meet high IRS quality standards. This means you can be assured that you will have an accurate return.
To make an appointment, visit the Tax-Aide and VITA/TCE websites if you:
- Generally make $60,000 or less,
- Have a disability,
- possess poor English proficiency or speak it as a second language, or
- Are 60 years or older
Find a VITA or an AARP Tax Aide site
Note: While some AARP Tax Aide and VITA locations remain open all year, others close at the conclusion of tax season. To locate a site that intends to stay open after April 15, 2024, when conducting a site search, make sure to look at the “Dates open” column.
Remote full-service free tax preparation
You can prepare your own return with help from IRS certified volunteers when you need it through MyFreeTaxes if your income is $73,000 or less.
You can get connected to VITA providers around the country virtually to have your return prepared by signing up through GetYourRefund if your income is $66,000 or less.
You might be able to use IRS Free File’s guided tax preparation software to prepare and file your federal income tax returns for free online if your income is $73,0003 or less. Providers determine other eligibility for free products, and some may charge fees for filing state returns. Examine offers carefully and use the IRS link to access this service instead of visiting the website for the guided tax preparation software directly.
Free tax filing for servicemembers
You can prepare and file your tax return for free through MilTax if you are:
- spouses and dependent children of eligible service members, as well as active-duty personnel
- Members of the Reserve and National Guard, irrespective of their status as activated
- retired and honorably discharged military personnel, including veterans of the Coast Guard, within a year following their release
- An eligible service member’s family member overseeing their affairs while they are deployed
- a designated family member who is unable to manage their own affairs and is the family of a severely injured service member
- Relatives of qualifying active-duty, National Guard, and reserve personnel who have lost their lives in combat, regardless of their status as activated
- Some members of the Defense Department Civilian Expeditionary workforce.
Consider these factors before using a fee-based tax preparer
Here are some things to think about before deciding to hire someone to prepare your taxes:
- Generally speaking, the fees you pay will depend on how complicated your return is. You will probably pay more than if you have a straightforward return if you, for instance, have multiple sources of income, including self-employment, are claiming specific tax credits, or have experienced changes in your circumstances throughout the year. If you meet the requirements mentioned above, you might still be able to file your taxes for free despite the complexity of your return. To be sure, check with the free provider of your choice before paying to have your taxes completed.
Here are some important tips about selecting a paid preparer:
- Check the preparers qualifications. To verify a preparer’s qualifications, use the IRS directory of federal tax return preparers.
- Check the preparers history. Taxpayers can inquire about the preparer with the neighborhood Better Business Bureau.
- Ask about service fees. Additionally, be cautious of preparers who brag about receiving greater refunds than their rivals.
- Make sure the preparer will still be available if you need follow-up assistance with your taxes after this year’s April 15 deadline.
- Your tax documents, such as W-2s, are your records. In order to compel you to use their service, preparers are not allowed to keep the original copies of these documents or your ID. They will require copies of your documents for their records if you file through their service.
- Ascertain that the preparer has signed the return and provided their Preparer Tax Identification Number (PTIN). All paid tax preparers must have a PTIN. Paid preparers are required by law to sign returns and affix their PTIN to the returns they file.
If you use a paid preparer, they might try to upsell you on other items like refund anticipation checks or refund advance loans, which will lower your refund amount.
Understand refund anticipation checks and refund advance loans
Certain tax preparers may offer you a refund anticipation check (RAC) if you use a fee-based tax preparer and you don’t have the required filing fees. With a RAC, you can pay the tax preparation cost from your refund rather than in full up front. The tax preparer will deduct the filing fee, RAC fee, and any additional fees they charged you from your refund. A RAC doesn’t deliver your refund more quickly.
Refund Advance Loan (RAL)
Refund advance loan (RAL) is a service provided by certain fee-based tax preparers that allows you to receive a portion of your anticipated refund ahead of time. Tax preparers may call them a “tax refund advance. If you choose to make an advance, you will borrow money from the preparer up front. The remaining amount, less the RAL fee and any other fees they may have assessed you, will be given to you after the IRS issues your refund to the tax preparer. Usually, a RAL’s amount is expressed as a percentage of your anticipated tax refund.
All tax preparation firms are different. While some companies offer RALs without fees or interest, others might.
Remember that the IRS usually processes most refunds filed electronically in less than 21 days, so you might have to pay a hefty RAL fee for a short-term advance.
As with any financial product or service, carefully weigh the timing, fees, and other factors to help you make the best decision possible.
Access your tax refund quickly and safely
Before you submit your return, consider the following if you believe you could get a refund:
- Selecting direct deposit and filing electronically will get your refund the quickest. The IRS typically provides refunds for direct deposit within 21 days. Issuance of paper check refunds may take much longer. The IRS estimates 4 to 6 weeks. When filing your tax return, make sure you have all of your account and routing number information handy if you already have a bank or credit union account. If you put that information on the tax form, the IRS will deposit the money into your account automatically. You can also get your refund on a prepaid card that accepts direct deposit if you have one. Before filing your return, make sure you have the routing and account number linked to your prepaid card from your card provider.
- Learn more about choosing the right prepaid card.
- Consider opening a bank account or obtaining a prepaid card if you don’t already have one. Many credit unions and banks provide accounts with minimal balance requirements or no monthly maintenance fees if you have direct deposit. These accounts might offer free access to in-network automated teller machines (ATMs) in addition to limiting the kinds of fees you can accrue. You can often open these accounts online. Learn more about the FDIC’s #GetBanked campaign .
- Preparers may suggest receiving your refunds on a prepaid card. Depending on your provider, these cards have a wide range of fees. The majority will charge you for using an ATM outside of their network, so you should consider how convenient the network is for you.
Watch out for tax scams!
Typically, con artists pose as the IRS in order to obtain personal information from you. Tax scams have cost thousands of people millions of dollars and their personal information. Scammers target individuals, companies, payroll and tax professionals via mail, phone, or email.
The IRS does not initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. Learn how to recognize the telltale signs of a scam and make sure you know how to tell if it’s really the IRS calling or knocking on your door.
Submitting complaints about financial products
Use the Submit a Complaint service to file complaints with the CFPB regarding refund advances, refund checks, prepaid cards, and other financial products.
Were the Consumer Financial Protection Bureau (CFPB), a U. S. government organization that ensures you are treated fairly by lenders, banks, and other financial institutions
Do you have a complaint about a financial product or service? We can assist you in connecting with the companies if you have one, and we also have answers to frequently asked questions.
FAQ
Will tax refunds be bigger in 2024?
Will I receive a larger tax refund in 202024? Some taxpayers may receive larger refunds this year, with some possibly receiving 2010% more than a year earlier, according to Steinberg. Workers whose income didn’t keep up with inflation are most likely the ones getting larger refunds from the government.
How much is the child tax credit for 2024 per child?
For 2023 taxes filed this year, the maximum refundable amount per child, which is currently capped at $1,600, would rise to $1,800. The refundable amount would increase to $1,900 and $2,000 in tax years 2024 and 2025.
Are 2024 tax brackets changing?
The IRS raised the tax brackets for 2024, which might mean that some people will receive more money when they get paid. This article is a part of CNET’s Taxes 2024 series, which covers the best tax software, tax advice, and other necessities for filing taxes and monitoring refunds.
How much will I get for earned income credit?
If you are a working family or individual making up to $30,950 annually, you may be eligible for a California Earned Income Tax Credit (CalEITC) of up to $3,529 for the tax year 2023. The California Earned Income Tax Credit must be claimed on the 2023 FTB 3514 form. If you choose to e-file, make sure to follow the directions on your software.
Read More :
https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024
https://www.consumerfinance.gov/consumer-tools/guide-to-filing-your-taxes/