make WWAY your homepage  Become a fan on facebook  Follow us on twitter  Receive RSS Newsfeeds  MEMBERS: Register | Login

Countdown to Tax Time

READ MORE:
Last minute tax filers: the clock is ticking. You have a few hours remaining to submit your tax return or request an extension. Even though taxpayers had two extra days this year because the April 15 deadline fell on a Sunday, and Monday was a holiday in Washington DC the post office in downtown Wilmington says it's been busy all day and the crunch isn't just on taxpayers. Those who prepare taxes feel the pressures of the deadline too. Wilmington Liberty Tax owner Keith Jacobs said, "Probably the last week of the tax season about 20 percent of tax filers probably file. I'd say the busiest days for us and most companies out there are probably the last two days are the busiest for the whole tax season." Companies that prepare taxes have extra staff on hand to accommodate filers tonight. The IRS says it expects to process 136 million returns this year.
Filing an Extension? It's almost here -- the deadline to file your personal tax return. Your federal and state tax returns are due tomorrow by midnight. You've delayed the inevitable and your box of receipts is still a mess. If you're not going to make the tax deadline, there is an alternative. You can choose to file an extension. Taxpayers who need a reprieve from the April 17 deadline can fill out IRS form 4868. You'll have an extra six months to finish up your return, which is helpful but it won't postpone your payment if you owe money. When you file an extension you must estimate what you owe and send a check for the amount due. And it's better to send more than less. Otherwise, penalties and interest will accrue. If you don't have the money to pay your taxes, there is help. The IRS will work with you to come up with a payment plan that works with your income. The tax agency can even work to automatically withhold taxes from your paycheck or bank account. Experts say filing an extension without making a payment on your estimated taxes is a major mistake, and will really cost you.
Today's tax tip could help save you time and money by allowing someone else to do your taxes. Are you familiar with VITA? Volunteer Income Tax Assistance. Depending on your income, you could qualify to have free tax preparation. Mark Hanson with IRS media relations said, "The Volunteer Income Tax Assistance program is a great benefit for many taxpayers earning under $39,000, where they can have trained volunteers prepare their taxes for them." VITA volunteers provide free income tax preparation assistance to low-income, elderly, disabled and those with limited skills in English. The volunteers donate their time to help you and they've been trained and certified by the IRS. If you are retired or have extra time to help others, you could get trained to help others, too, as a VITA member. Read more information on VITA here
We're counting down to tax time. This year we have a bit of a respite. Taxes are due on Tuesday, April 17. Just 13 more days, including today, to prepare. As we get into the crunch of having less than two weeks to prepare and file our returns, we've told you that one way to save time is to electronically file online. But it's important to use caution. The IRS has made it easy to e-file, but an IRS spokesman says make sure you protect yourself from phony IRS "squatter sites" that aren't really the IRS and never give your social security number without making sure it's safe. And if you get an e-mail purporting to be from the IRS, beware. Mark Hanson with IRS public relations said, "The IRS will not begin contact with a taxpayer by e-mail or by telephone. You'll first receive a letter in the mail, so if you receive an e-mail message that claims to be from the IRS, chances are, this is a scam." If you use e-mail, chances are you've gotten the so-called Nigerian e-mails telling you that the king of wherever has left a million dollars in a protected account. Sadly, there are unscrupulous people who prey on your trusting nature with the intention of taking advantage of you. If it sounds too good to be true it probably is too good to be true.
Today's tax tip relates to the "earned income tax credit." This credit gives a tax break to low-income workers. If you were between 25 and 64 at the end of 2006, and had earned income of less than $12-thousand dollars, ($12,120 for singles, or $14,120 if married filing jointly) you may qualify for EITC. Mark Hanson, IRS media relations specialist said, "The earned income tax credit is a great benefit for many hardworking people out there who earn less than $39,000. They could qualify for refundable tax credits of slightly more than $4,500." If you're a low-income worker without children, you may not realize that you could qualify for the e-i-t-c. Be sure to check into this. The money is there for the taking, and you might even get a refund. Remember that you must file a tax return to get the credit, even if you're not required to file a return based on the amount of money you make. The Earned Income Tax Credit (EITC), sometimes called the Earned Income Credit (EIC), is a refundable federal income tax credit for low-income working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit. To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return. To qualify for EITC, you must meet the following rules: -- Must have a valid Social Security Number -- You must have earned income from employment or self-employment -- Your filing status cannot be married, filing separately -- You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien filing a joint return -- You cannot be the qualifying child of another person If you do not have a qualifying child, you must: -- Be age 25 but under 65 at the end of the year, live in the United States for more than half the year, and not qualify as a dependent of another person cannot file Form 2555 or 2555-EZ (related to foreign earned income) for Tax Year 2006, investment income must be $2,800 or less. For more information, visit http://www.irs.gov/individuals/article/0,,id=96406,00.html
Tax time is a particularly stressful season. Many of us procrastinate until the last minute, with stacks of receipts to review and forms to prepare, as the deadline approaches.

That last-minute run to the post office, standing in line to make sure that your return is postmarked in time -- now, there's an easier way to file.

Mark Hanson with IRS media relations said, "Taxpayers can go to the irs.gov web site and click on the "e-file" link for more information on how they can file their taxes online from the convenience of their own home."

Filing online is easy and fast, and barring complications, you'll get your refund sooner, too. But beware; there are look-alike websites that prey on consumers.

Don't make the mistake of going to www.irs.com, or irs.net or any other copycat site that is hoping to steal your identity. The official website for the IRS is www.irs.gov.
April's here and of course that means more than springtime -- the deadline to file your taxes is just around the corner.

The deadline is normally April 15, but this year, that falls on a Sunday, so you get an extra day to procrastinate. And Monday happens to be a holiday in Washington, D.C. so you get a bonus day.

Mark Hanson with IRS media relations said, "Any taxpayers may qualify for the 1040-EZ form if they're only a W2 wager earner, so it's definitely a way to make the filing season much easier for them."

So if you don't itemize on your tax return you can choose to use the 1040-EZ and that can save you a lot of time. If you need a tax preparation booklet and forms visit your local post office. Every day between now and April 17 we'll bring you a new tax tip to help save you money.

Tune in to WWAY at 5:30 p.m. and if you miss it, we'll have it again during our 11 o'clock newscast. For more info visit IRS.gov.

Disclaimer: Comments posted on this, or any story are opinions of those people posting them, and not the views or opinions of WWAY NewsChannel 3, its management or employees. You can view our comment policy here.

»

Reply

The content of this field is kept private and will not be shown publicly.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

More information about formatting options

To prevent automated spam submissions leave this field empty.
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.