How to file taxes for free with help from the IRS

January 15, 2024

Internal Revenue Service partners with an online free filing option

The IRS has partnered with Free File Inc which allows taxpayers who have an Adjusted Gross Income (AGI) of $79,000. Taxpayers can select from several free tax preparation software some of which also will file state forms. The link is here for IRS Free File. Once you have selected the link, click on the blue box labelled "Explore free guided tax software". If you already know which software you want to use, click on Find you Trusted Partner. If not, click on browse all trusted partners. From there you can enter your AGI, age, whether you qualify for the Earned Income Tax Credit, whether you are active in the military, and the state you reside in. The program will give you software programs that meet your filing needs. Click here for a video for more information.

For those who have an AGI of more than $79,000, the IRS offers Free File Fillable Forms. There you can choose the forms you need, enter your tax information, electronically sign and file, and print your return for your own recordkeeping. The Free File Fillable Forms does not give any guidance, but you can search topics on the IRS website. Click here for a video for more information.

Latest News

December 26, 2023

1099K Delay for third party platforms

Implementation of the $600 threshold has been delayed again for another tax year to include 2023. This means that if you received income from platforms such as CashApp, Venmo, PayPal, and eBay, you will not be receiving a form (1099K) unless your income is more than 20,000, Even though you do not receive a form, you must report business income whether you receive it through cash, check, or a third party platform. The IRS is delaying the implementation due to the confusion of taxpayers using some of these apps for personal use. My suggestion is to use a business account separate from a personal account for clarity. The IRS will use a threshold of $5,000 for the 2024 tax year.

January 3, 2023
Residential Energy Credit

Unfortunately 2022 is not a great year for the residential energy credit. The Non-Business Energy Tax Credit is 10% of the cost up to $500 or a specific amount from $50-$300. The item must have been placed in service into an existing home which is your principal place of residence by the last day of 2022. A heat pump, central air conditioner, or non-solar water heater that is energy efficient or is recognized as Energy Star will render a credit of up to $300. A hot water boiler or gas, propane or oil furnace and fan that is certified as Energy Star will render a credit up to $150. Windows, doors, and skylights that earn the Energy Star as well as insulation will receive a credit of 10% of the cost up to $500. Please seek the advice of your tax professional to decide if your home improvement meets the requierments of this credit.

January 2, 2023
Estimated Tax Due Date

The estimated tax due date is on January 17th since the 15th is on the weekend and the 16th is a national holiday, Martin Luther King Jr. If you need to file estimated taxes and you are unaware of how much you should send in, please scheduled an appointment with your tax preparer. Time is of the essence as many tax preparers have a schedule that is filling fast for end of the year preparations. If you get your taxes prepared by me, either call ASAP or go the appointments tab and schedule your appointment. If you would like to read more regarding estimated taxes, read this article.

December 15, 2022
New mileage rate for 2023

The Internal Revenue Service has issued a new mileage rate for the 2023 tax year. The new rate for operating an automobile for business is up 3 cents from mid year 2022 to 65.5 for 2023. The rate is now .22 cents for medical miles and .14 cents for service of charitable organizations. These rates apply to all types of automobiles. Please talk to your tax professional to determine if you can deduct your mileage. Remember that we can no longer take unreimbursed employee travel expenses or a deduction for moving expenses due to the Tax Cuts and Jobs Act of 2017. If you reside in NYS, these amounts can still be applied to your taxes.

March 15, 2021

Tax Due Date

The tax due date has gone back to the traditional date of April 15th. If you have not scheduled an appointment with your tax preparer, time is of the essence as many tax preparers have a schedule that is filling fast. If you get your taxes prepared by me, either call ASAP or go the appointments tab and schedule your appointment.

March 12, 2021
Third round of stimulus checks

The third relief package that includes $1,400 stimulus checks was passed by the House and the Senate and has been signed by the president. The payments will be based on a taxpayer's latest processed tax return from either 2019 or 2020. This includes anyone who used the IRS non-filers tool last year. Individuals earning up to $75,000 and married couples with incomes up to $150,000 will get the full payment. Payments will decline for incomes above those thresholds phasing out above $80,000 for individuals and $160,000 for married couples. If you want to track your payment, you can use the IRS website at www.irs.gov/coronavirus/get-my-payment.

January 2, 2021

Estimated Taxes

Friday, January 15th is the last day an estimated tax payment for the 2020 tax year can be made. If you are unsure if you need to make an estimated tax payment, you should check with a tax preparer. For the year 2020, you may owe taxes if you had taxable income (such as unemployment or self employment income), but did not have any taxes withheld or did not have enough withheld.

April 4. 2020

Economic Impact Payments: What You Need to Know

1. Check IRS.gov for the latest information. No action needed by most people at this time.

2. Tax filers with an adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.

3. Eligible taxpayers who filed returns for either 3019 or 2018 will automatically receive an economic impact payment of up to $1,200 for for individuals or $2,400 for married couples and up to $500 for each qualifying child.

December 18, 2020

2021 Mileage Rates

The mileage rates have been determined for the 2021 tax year. The rate is going down by 1 and 1/2 cent to .56 per mile for business miles. Charitable mileage remains the same at .14 and moving and medical mileage is down by 1 cent to .16 per mile.

February 15, 2020

Tax refunds and/or payments

If you have completed your taxes and you're expecting a refund, but you aren't sure when you will receive it, wait a one week for the IRS to process it. Then you can go to the IRS website and click on "Get Your Refund Status". Click on "Check my refund status and answer the prompts given. You will need to know the primary (first person on the tax return if filing married filing jointly), the filing status (single, MFJ, MFS, HOH, or QW), and the anticipated refund.

If you have a payment due, you have until April 15th to pay it. If you cannot pay the whole amount, pay as much as you can and then set up a monthly payment arrangement. Talk to your tax preparer or see the following site: https://www.irs.gov/payments/online-payment-agreement-application.

January 22, 2020

New employment forms

The new year brings new forms for employees. All forms have been revised to assist employees to withhold the correct amount of federal withholding for the new tax codes. The form for federal withholding is the W-4 and the form to file for NYS withholding is IT-2104. All employees will continue to need to also fill out an I-9. Employers are required to keep these forms on record for each employee.

January 5, 2020

2020 Mileage Rates

The Internal Revenue Service has issued the 2020 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2020, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

57.5 cents per mile driven for business use, down one half of a cent from the rate for 2019,
17 cents per mile driven for medical or moving purposes, down three cents from the rate for 2019, and
14 cents per mile driven in service of charitable organizations.

The business mileage rate decreased one half of a cent for business travel driven and three cents for medical and certain moving expense from the rates for 2019. The charitable rate is set by statute and remains unchanged.

IRS Now Billing for Unpaid Taxes for 2018

June 7, 2019

Letters are being sent this week to taxpayers who owed, but were unable to pay their tax obligation. Due to the tax changes that caused many to owe, the IRS has stated that them may qualify for a waiver of the estimated tax penalty that normally applies. The waiver and instructions can be found here.

There are several payment options including paying online and making a payment agreement. For more information regarding payment options, click here for the IRS link.

If you are unsure of how much you owe and haven't received a tax bill yet, you can get a transcript of your taxes. Click here for the IRS Transcript service.

Estimated Personal and Business Quarterly Taxes are due June 17, 2019

Quarterly personal and corporate taxes are generally due June 15. This year June 15th falls on a Saturday which extends the due date to Monday, June 17.

How do you know if you need to pay quarterly taxes? If you own rentals and or are self-employed, you can avoid a surprise tax bill and possibly a penalty by making estimated tax payments during the year. You may also owe if you receive income that did not have federal or state withholding such as cancelled debt, pension income, and the sale of rental property. Please check with your tax preparer if you are unsure about whether or not you should pay quarterly taxes. If you are paying quarterly taxes and need the forms, here is the federal form and the NYS form.

Paying your estimated taxes will alleviate much of the headaches and stresses during tax season.

Marriage

May 30, 2019

Many weddings occur over the summer so it's a great time to talk about the changes that go along with marriage. First, make sure you check your withholding using the withholding calculator from the IRS.

Secondly, if you are changing your name, please change it with social security administration. The name that is on your tax must match your name listed at SSA. If you reside in Rochester, there are two offices and here are their addresses.

Also, you will need to change your address if you are moving. You can either change it when you file your taxes or you can fill out form 8822.

If you have questions regarding whether you and your spouse should file Married Filing Separately or Married Filing Jointly, you should contact your tax preparer.

April 18, 2019

Withholding Calculator

Many people saw a different refund from what they anticipated. Due to the major tax changes in the tax code from the Tax Cuts and Jobs Act, it is highly recommended that everyone should check their federal withholding. A Paycheck Checkup can help you see if you are withholding the right amount of tax from your paycheck(s). Too little could mean an unexpected tax bill or penalty. Please use the withholding calculator link to the IRS. If you have questions as you complete the survey, please contact your accountant.

THIS MEANS THAT… Using the withholding calculator can help you adjust your W-4 to possibly avoid an unexpected tax bill or penalty.

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