Easy, safe and fast — that’s direct deposit. It’s the best way to get a tax refund. Eighty percent of taxpayers choose it every year. The IRS knows taxpayers have a choice of how to receive their refunds.
IRS Direct Deposit:
- Is Fast. The quickest way for taxpayers to get their refund is to electronically file their federal tax return and use direct deposit.
- Is Secure. Since refunds go right into a bank account, there’s no risk of having a paper check stolen or lost in the mail. This is the same electronic transfer system used to deposit nearly 98 percent of all Social Security and Veterans Affairs benefits into millions of accounts.
- Is Convenient. There’s no need to wait for a refund check to come in the mail.
- Is Easy. Choosing direct deposit is easy. For paper returns, the tax form instructions serve as a guide. Make sure to enter the correct bank account and routing number.
- Has Options. Taxpayers can split a refund into several financial accounts. These include checking, savings, health, education and certain retirement accounts. The U.S. Treasury Department offers a retirement account. It’s called a MyRA account. Designate all or a part of a refund to a new MyRA account.
Taxpayers should deposit refunds into accounts in their own name, their spouse’s name or both. Avoid making a deposit into accounts owned by others. Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Taxpayers should check with their bank for direct deposit rules.
There is a limitof three electronic direct deposit refunds made into a single financial account or pre-paid debit card. The IRS will send a notice and a refund check in the mail to taxpayers who exceed the limit.
All taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
The IRS offers many safe and easy ways to pay your taxes. These tips explain
many of them:
- Mailed tax bills. The IRS sends bills in
the U. S. mail. Try to pay soon and in full to avoid any extra charges. If
you can’t pay in full, you’ll save if you pay as much as you can. The more
you can pay the less interest and penalties you will owe for late payment.
The IRS offers several payment
options on IRS.gov.
- Use IRS Direct Pay. The best way to pay
your taxes is with IRS Direct Pay. It’s the safe, easy and free way to pay
from your checking or savings account. You can pay your tax in just five
simple steps in one online session. Just click on the “Payment” tab on
IRS.gov. You can now use Direct Pay with the IRS2Go
mobile app.
- Get a short-term payment
plan.
If you owe more tax than you can pay, you may qualify for more time- up to
120 days- to pay in full. You do not have to pay a user fee to set up a
short-term full
payment agreement. However, the IRS will charge interest and penalties
until you pay in full. It’s easy to apply
online at IRS.gov.
- Apply for an installment
agreement.
Most people who need more time to pay can apply for an Online
Payment Agreement on IRS.gov. A direct debit payment plan is the
hassle-free way to pay. The setup fee is much less than other plans and
you won’t miss a payment. If you can’t apply online, or prefer to do so in
writing, use Form
9465, Installment Agreement Request. Individuals can use Direct Pay to
make their installment payments. For more about payment
plan options, visit IRS.gov.
- Check out an offer in
compromise.
An offer
in compromise or OIC may let you settle your tax debt for less than
the full amount you owe. An OIC may also be helpful if full payment may
cause you financial hardship. Not everyone qualifies, however, so make
sure you explore all other ways to pay your tax before you submit one to
the IRS. Use the OIC
Pre-Qualifier tool to see if you qualify.
- Avoid tax surprises. If you are an employee,
you can avoid a tax bill by having more taxes
withheld from your pay. To do this, file a new Form
W-4, Employee’s Withholding Allowance Certificate, with your employer.
Use the IRS Withholding
Calculator tool on IRS.gov to see if you’re having the right amount
withheld. If you are self-employed, you may need to make or change your estimated
tax payments. See Form
1040-ES, Estimated Tax for Individuals to learn more.
Source: Internal Revenue Service
contact@officetaxservices.com
(858)247-1680
