ADVERTISEMENT
ADVERTISEMENT

Tax Day is April 15. Here's what you can expect when filing under the new tax law

The IRS deadline to file your tax return is April 15 in 2019, but there are certain things to be aware of before filing your taxes.

Tax Day is April 15.
  • The

The deadline to submit your tax return in 2019 — or file an extension with the IRS — is Monday, April 15.

The new tax law is in effect, so there are a few changes to be aware of when filing your taxes.

Here's what to expect when you submit your tax return this year.

ADVERTISEMENT

Many online tax services allow you to file your federal taxes for free — and sometimes state taxes as well — if your income was less than $66,000 in 2018. You can check your options using the IRS Free File lookup.

You can also download the IRS2Go app to find free tax-filing assistance, check your refund status, or make a payment.

You can still file for free if you make more than $66,000, but to do so, you'll need to use the Free File Fillable Forms. The IRS recommends using those forms only if you have experience preparing tax returns on your own.

ADVERTISEMENT

Before you file your taxes, you need to collect all your 2018 tax documents. If you're an employee, that means your W-2; if you're a freelancer, you may have multiple 1099 forms. In some cases, you may have other statements, such as income earned from an interest-bearing savings account or interest paid on a loan, or even taxable bitcoin gains.

Most tax-related documents must be filed by your employer or other institution by January 31, and the statements must be postmarked by that date as well. That means you should have received everything you need by early February.

In the meantime, you can estimate your tax refund for this year using an online tax calculator.

Your tax situation can change over time — for example, if you get married, buy a home, or have a child — so it's always a good idea to review your W-4 tax-withholding form at the start of a new year. With the new tax law this year, it's even more important.

ADVERTISEMENT

President Donald Trump changed the US tax code for the first time in 30 years when he signed the Republican tax bill into law in December 2017. The changes — including new tax brackets and modified tax deductions — went into effect on January 1, 2018. Employees should have noticed a difference in their take-home pay.

:

The IRS says it has worked with payroll providers to make the change as seamless as possible for taxpayers, but refunds may be different for some taxpayers this year and some may owe an unexpected tax bill if they didn't review and adjust their withholding, according to the IRS.

Some tax deductions have changed under the new law as well. The standard deduction will nearly double and some itemized deductions have changed. You can see a full list of changes on the IRS website.

ADVERTISEMENT

The IRS says the fastest way to get your tax refund is the method already used by most taxpayers: filing electronically and selecting direct deposit as the method for receiving your refund.

The IRS says direct deposit — which the government also uses for Social Security and Veterans Affairs payments — is "simple, safe, and secure."

Popular online tax services like TurboTax and H&R Block are easy to use, even for tax novices — but they aren't the only option for e-filing your taxes for free. If you plan to visit an accountant, make an appointment early to avoid the rush.

In 2018, Americans have received tax refunds worth more than $324 billion, with an average refund of $2,899, according to the IRS.

ADVERTISEMENT

Your tax refund should hit your bank account within three weeks of filing online, assuming you opt to receive it via direct deposit. Often, you'll get your money even faster.

You can check the status of your tax refund using the IRS's return-tracking service 24 hours after filing your tax return online or four weeks after mailing a return.

Regardless of when you file your tax return, your 2018 tax bill is due April 15. You can file early and schedule a payment for that day (or anytime before) if you aren't quite ready to pay.

ADVERTISEMENT

But, if you can't afford to pay your tax bill in full, don't pull out your credit card or ignore the situation. The IRS offers reasonable payment plans at much lower interest rates than most banks. You may even be able to settle the bill for less than you owe, called an offer in compromise, or request a deferment until you can make a payment.

You don't have to save your tax returns forever. The IRS recommends holding onto copies for at least three years — the typical length of time the IRS would look back if you happen to get audited.

Most audits cover returns filed over the past two years, but the IRS can go back further if the situation calls for it. But audits shouldn't be cause for worry for most taxpayers. Fewer than 1% of tax returns are audited by the IRS.

When you dispose of old tax returns, make sure to properly shred the documents to protect against identity theft.

ADVERTISEMENT

Tax season presents plenty of opportunity for would-be identity thieves. A stolen Social Security number can be used to file a fraudulent tax return and refund request, but it's not the only tax scam out there. The IRS keeps track of the most common tax-related crimes, and the list is long and varied.

The best way to protect against tax scams — especially potential identity theft — is to file your tax return as soon as possible.

If you think you are a victim of identity theft or tax fraud, you should report it to the Treasury Inspector General for Tax Administration. The IRS also has detailed instructions on what to do if you are a victim of tax fraud.

ADVERTISEMENT

The US Department of Justice says the IRS never discusses personal tax issues through unsolicited emails or texts, or over social media. Be wary if you are contacted by someone claiming to be from the IRS who says you owe money. When the IRS needs to get in touch with a taxpayer, standard practice is to send a letter via the US Postal Service. If you receive an unexpected and suspicious email from the IRS, forward it to phishing@irs.gov.

  • How to figure out if you should do your own taxes or hire a pro
  • You may be able to cut down your tax bill with a little-known credit if you saved for retirement this year
  • 10 things you probably didn't know you could deduct on your taxes
  • Getting a huge tax refund can be a costly mistake — here's why a financial planner would rather get a bill

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.
ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.ng

Recommended articles

7 do's and don’ts of the Holy month of Ramadan

7 do's and don’ts of the Holy month of Ramadan

Top 5 sweetest celebrity mother-child relationships that stand out for us

Top 5 sweetest celebrity mother-child relationships that stand out for us

International Women's Day: 5 Nigerian female celebrities championing women’s rights

International Women's Day: 5 Nigerian female celebrities championing women’s rights

Top 5 female directors in Nollywood

Top 5 female directors in Nollywood

6 things that will break a Muslim's fast during Ramadan

6 things that will break a Muslim's fast during Ramadan

5 benefits of fasting during Ramadan

5 benefits of fasting during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

Dos and don’ts of supporting Muslims during Ramadan

Here are common things people rarely dream about

Here are common things people rarely dream about

5 young women who embody Y2K and alte fashion

5 young women who embody Y2K and alte fashion

ADVERTISEMENT
ADVERTISEMENT