You have filed your taxes with your accountant and now the waiting game begins, you ask. “When will I receive my refund?”.
Great question! This is the reason we file our taxes, to get a refund check to help out with finances: a new car, a new house, maintenance on your current car or house, or a nice family vacation.
There are two options you have when filing your taxes, the old school paper filing method, or the modern e-filing method. In order to receive your refund as fast as possible the best method is to e-file. This sends your tax information directly to the IRS, no waiting on the mail to arrive, get sorted, opened and processed. This also avoids the possibility of the paperwork being lost.
Once the IRS receives your information, according to their website, processing for e-filing takes on average 21 days to process as long as you have submitted all the required information. Any missing or inaccurate items will cause a delay in your refund.
Additionally, another way to speed up the process of receiving your refund is by signing up to have your refund direct deposited into your bank account. This allows the IRS to electronically deposit the funds into your account so there will be no need to print and mail a paper check to you. Printing and mailing takes additional time, which will delay the time it takes to receive your refund.
The IRS will allow you to split your refund across 3 different accounts. Following are different account types and methods of receiving your refund from the IRS:
- Direct Deposit into a personal or business, savings or checking account
- Treasury Direct®,
- Traditional, Roth, or SEP-IRA
- Savings Bonds
- Paper Check
As digital technology continues to advance, the IRS has created some tools available on their website to keep you up to date, and avoid calling and waiting for hours to speak to someone for simple information. Introducing, Where’s my refund?, a new tool on the IRS’s website that allows you to get up to date information regarding your refund. Information becomes available 24 hours after e-filing, and 4 weeks after you mailing your paper return (all the more reason to e-file). You can also download their mobile app IRS2Go to get the information directly on your mobile device. The information is updated once every 24 hours. The information you need from you return to track your information is:
- Your Social Security number
- Your filing status
- Total dollar amount of your refund from the tax return you filed.
In the event you do not have Internet access, you can call 800-829-1954 to receive status information over the phone.
When accessing the Where’s My Refund portal, the tool displays three different stages of processing of your refund:
- Return Received
- Return Approved
- Refund Sent
For more detailed information about your Tax Refund please speak to our tax specialists by calling 305-762-1818.
You have filed your taxes for the year and instead of receiving a refund you owe the IRS tax money but cannot pay it back. This is a very unfortunate situation but one that is not uncommon. Don’t panic the IRS has a couple of different options to assist you in paying your taxes.
1.Request an Extension of Time to Pay
Contact the IRS to request an extension of time to pay the tax. If granted, the IRS will give you 120 days to make a payment with no additional fees, however, interests and penalties will apply to the full amount of the tax liability until it is paid in full. This is the quickest and least costly option the IRS will provide. You can also file for an extension through FORM 1127 but your taxes must be filed on time.
2. Request an Installment Agreement
Another option offered to you by the IRS to assist your in paying back your taxes is through an installment agreement. This give you the ability to pay the debt back over 6 years, which gives you a lot more time than an extension of time to pay. FORM 9465 needs to be submitted when you file your taxes to request the installment agreement. You should receive a response within 30 days of filing your application. You can make payments by:
- Direct debit from a bank account
- Payroll deduction from your employer
- Via check or money order
- Through the Electronic Federal Tax Payment System
- Via Credit card by phone or internet
- Via Online Payment Agreement
The fees associated with the Installment agreement are: A one time installment fee of $225 or $31 if debited from your bank account. To restructure or reinstate an existing installment agreement, the fee is $89. You are able to set the amount, dates, and frequency of the payment but we advise you to plan accordingly so you will not default on the agreement.
3. Offer in Compromise
If you are unable to pay your taxes because of losing your job or your business is failing the final option is to request an Offer in Compromise from the IRS. This is only if you will not have the ability to pay the tax liability within the foreseeable future or based on the timelines in the options listed above. The OIC will allow you to pay a reduced amount of what you owe that they agree to as full payment of your tax liability. Qualification for the OIC require you to have all filing and payment requirements current and not participating in any bankruptcy proceedings.
Please contact us today for help with repaying your tax liability at 305-392-0339.
Tax credits are great! They reduce the amount of tax liability on your refund allowing you to receive a higher refund or pay a lesser amount of tax. There are seven types of tax credits available as follows:
- Earned Income Credit
- Child and Dependent Care Credit
- Adoption Credit and Adoption Assistance Programs
- Excess Social Security and RRTA Tax Withheld
- Retirement Savings Contributions Credit
- First-Time Homebuyer Credit
- The Premium Tax Credit
Earned Income Credit is a refundable tax credit for individuals who worked the previous year for a low or moderate income below $53,505. For the full details regarding eligibility for the EIC Tax credit please contact us directly.
Child and Dependent Care Credit is a tax credit provided if you paid expenses for child care to allow you and/or your spouse to work/look for work. The credit is a percentage of work-related expenses paid to the provider for the care of your child/children.
Adoption Credit and Adoption Assistance Programs provide a tax credit for qualified adoption expenses for the child/children and exclusion on income from employer assistance. Qualified adoption expenses include:
- Reasonable and necessary adoption fees
- Court costs and attorney fees
- Traveling expenses
- Other expenses directly related to the legal adoption of the child/children
The maximum amount for the 2016-year per child is $13,460.
Excess Social Security and RRTA Tax Withheld This is a rare instance when your employer withholds too much Social Security Tax or your Railroad employer withholds too much RRTA tax. In the event this has happened contact your employer to have them adjust the tax for you. If they are unable to do so please contact us to assist you.
Retirement Savings Contributions Credit Contributions that you make to an eligible retirement fund may qualify you for a tax credit. Tax credits vary depending on filing status and adjusted gross income, to see if your contributions qualify please contact us directly.
First-Time Homebuyer Credit You may be eligible for a tax credit for purchase on a home that is considered your primary residence from years 2008-2011. Eligibility depends on the year in which the home was purchased. Federal employees and members of the military are eligible for specific benefits upon eligibility of the credit. Please contact us to see if you qualify.
The Premium Tax Credit offers a tax credit to low to moderate-income families who purchase health insurance within the marketplace. This tax credit is refundable and has the ability to make premium payments directly to the health insurance provider. Please contact us directly to inquire about your eligibility.
If you feel that any of the above tax credits apply to you please don’t hesitate to call us at 305-400-8237 to determine your eligibility as well as help with ALL of your tax needs.
- Change your tax status at work. W-2 employees should review your allowances that you claim at work on the W-4 form you fill out during the hiring process. The higher the number the less tax is taken out. This also means your refund will be smaller. Reducing the number will cause more tax to be taken out but will lead to a larger refund at the end of the year.
- Track all of your deductions. Keep track of everything that is tax deductible over the course of the year. There are several smart phone apps on the market that will make it easier and less amount of paper work to track your deductions but its still a good idea to keep a folder over the course of the year and refresh it every tax season.
- Find a better paying job. A higher income will increase your refund at the end of the year but here is the tip. You may be able to deduct expenses related to job seeking such as travel, meals, resume preparation, and career counseling service if they exceed two percent of your income.
- Learn new skills. The costs of any classes at the college level are eligible for tax credits of 20% of the cost of tuition. Why not take some time to learn new skills you have always wanted: carpentry, welding, or even a foreign language.
- Donate. Tax season is over and spring-cleaning has arrived. Get rid of old items you don’t use anymore by donating to charities. These acts of kindness are tax deductible, which will allow for a larger refund next year.
- Buy Property. Property investments are beneficial from a tax perspective as the mortgage interest and property tax deductions will increase your refund.
- Switch to Solar Energy. Solar energy is extremely helpful to the environment as you harness energy naturally from the sun. The government is now giving tax credits up to 30% of the cost of solar energy equipment. No better time to switch than now.
- Fund your retirement account. Contributing to your retirement account is another opportunity at increasing your tax deductions, which will lead to a higher
Here at La Familia Multiservices, we have one thing in mind: you. As a dedicated tax firm with a proven record of success, we pride ourselves on helping all of our customers – individuals, small-to-medium businesses and large corporations alike – get the biggest tax returns possible. (And we’re pretty proud of it, too.) From preparing and filing your tax returns, to handling any liabilities that might pop up along the way, we’re here to make the process both easy and effective. And with tax season already upon us, there’s no time like the present to get started.
While many taxpayers like to wait until the April 15th deadline to file their returns, waiting ‘til the last minute can often make life a little harder. Here are just some of the reasons why filing your 2016 tax returns now might actually benefit you later:
You could get your tax refund early.
Think about it. It’s common sense: filing your tax returns early means an early tax refund, as well. Paper returns can take weeks, so take our advice and e-file your taxes with a direct deposit to your bank. In most cases, you’ll see your refund as soon as 10 days from the time you filed online – which means you could go on that long-awaited shopping spree in February, and not April.
You’ll have more time to pay the IRS.
Many taxpayers will file their taxes and find that have a balance due to the IRS. These payments aren’t due until tax day, April 15th, so submitting your returns in January will give you roughly three months to save until you’re able to pay them off. That’s much less stressful than having, say… three days.
You’ll get the information you need to make important financial decisions.
Our taxes determine a lot of things: like what kind of mortgage we can get, how much money the government thinks we make, what financial aid we qualify for, and the list goes on and on. In fact, when you try to buy a house or apply for financial assistance for college tuition, one of the first things you’ll need to show are your tax returns from the previous year. If you anticipate a big financial decision in the near future, file your taxes early – it will give you a head start on that process.
Filing early helps prevent tax identity theft.
As much as we try to avoid it, tax fraud does happen, and it’s an absolute pain to deal with. When your tax identity gets stolen, that means that 1) someone is trying to steal your tax refund, and 2) you usually have to go through a long, drawn-out process that could delay your refund for weeks, or sometimes, even months. These scammers aren’t new to the game and often get the job done earlier in the season. By filing your taxes in January or February, you have a better chance of evading this issue, and as a result, getting your refund quickly and easily.
Got questions? We’ve got answers. For more information about filing early, or to find out how to get started, contact La Familia Multiservices at one of our locations.
The IRS will begin accepting electronic tax returns that day, with more than 153 million individual tax returns expected to be filed in 2017. The IRS again expects more than four out of five tax returns will be prepared electronically using tax return preparation software.
Many software companies and tax professionals will be accepting tax returns before Jan. 23 and then will submit the returns when IRS systems open. The IRS will begin processing paper tax returns at the same time. There is no advantage to filing tax returns on paper in early January instead of waiting for the IRS to begin accepting e-filed returns.
The IRS reminds taxpayers that a new law requires the IRS to hold refunds claiming the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) until Feb. 15. In addition, the IRS wants taxpayers to be aware it will take several days for these refunds to be released and processed through financial institutions. Factoring in weekends and the President’s Day holiday, the IRS cautions that many affected taxpayers may not have actual access to their refunds until the week of Feb. 27.
“For this tax season, it’s more important than ever for taxpayers to plan ahead,” IRS Commissioner John Koskinen said. “People should make sure they have their year-end tax statements in hand, and we encourage people to file as they normally would, including those claiming the credits affected by the refund delay. Even with these significant changes, IRS employees and the entire tax community will be working hard to make this a smooth filing season for taxpayers.”
The IRS also reminds taxpayers that they should keep copies of their prior-year tax returns for at least three years. Taxpayers who are changing tax software products this filing season will need their adjusted gross income from their 2015 tax return in order to file electronically. The Electronic Filing Pin is no longer an option. Taxpayers can visit IRS.Gov/GetReady for more tips on preparing to file their 2016 tax return.
April 18 Filing Deadline
The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation.
“The opening of filing season reflects months and months of work by IRS employees,” Koskinen said. “This year, we had a number of important legislative changes to program into our systems, including the EITC refund date, as well as dealing with resource limitations. Our systems require extensive programming and testing beforehand to ensure we’re ready to accept and process more than 150 million returns.”
The IRS also has been working with the tax industry and state revenue departments as part of the Security Summit initiative to continue strengthening processing systems to protect taxpayers from identity theft and refund fraud. A number of new provisions are being added in 2017 to expand progress made during the past year.
Refunds in 2017
Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund.
The IRS still anticipates issuing more than nine out of 10 refunds in less than 21 days, but there are some important factors to keep in mind for taxpayers.
Beginning in 2017, a new law requires the IRS to hold refunds on tax returns claiming the Earned Income Tax Credit or the Additional Child Tax Credit until mid-February. Under the change required by Congress in the Protecting Americans from Tax Hikes (PATH) Act, the IRS must hold the entire refund — even the portion not associated with the EITC and ACTC — until at least Feb. 15. This change helps ensure that taxpayers get the refund they are owed by giving the IRS more time to help detect and prevent fraud.
As in past years, the IRS will begin accepting and processing tax returns once the filing season begins. All taxpayers should file as usual, and tax return preparers should also submit returns as they normally do — including returns claiming EITC and ACTC.
The IRS will begin releasing EITC and ACTC refunds starting Feb. 15. However, the IRS cautions taxpayers that these refunds likely won’t arrive in bank accounts or on debit cards until the week of Feb. 27 (assuming there are no processing issues with the tax return and the taxpayer chose direct deposit). This additional period is due to several factors, including banking and financial systems needing time to process deposits.
After refunds leave the IRS, it takes additional time for them to be processed and for financial institutions to accept and deposit the refunds to bank accounts and products. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. For EITC and ACTC filers, the three-day holiday weekend involving President’s Day may affect their refund timing.
Where’s My Refund? on IRS.gov and the IRS2Go phone app will be updated with projected deposit dates for early EITC and ACTC refund filers a few days after Feb. 15. Taxpayers will not see a refund date on Where’s My Refund? or through their software packages until then. The IRS, tax preparers and tax software will not have additional information on refund dates, so Where’s My Refund? remains the best way to check the status of a refund.
Help for Taxpayers
The IRS reminds taxpayers they have a variety of options to get help filing and preparing their tax return on IRS.gov. Taxpayers can also, if eligible, locate help from a community volunteer. Go to IRS.gov and click on the Filing tab for more information.
Seventy percent of the nation’s taxpayers are eligible for IRS Free File. Commercial partners of the IRS offer free brand-name software to about 100 million individuals and families with incomes of $64,000 or less.
Online fillable forms provides electronic versions of IRS paper forms to all taxpayers regardless of income that can be prepared and filed by people comfortable with completing their own returns.
Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) offer free tax help to people who qualify. Go to irs.gov and enter “free tax prep” in the search box to learn more and find a nearby VITA or TCE site, or download the IRS2Go smartphone app to find a free tax prep provider.
The IRS also reminds taxpayers that a trusted tax professional can provide helpful information and advice about the ever-changing tax code. Tips for choosing a return preparer and details about national tax professional groups are available on IRS.gov.
Renewal Reminder for Individual Taxpayer Identification Numbers (ITINS)
ITINs are used by people who have tax-filing or payment obligations under U.S. law but are not eligible for a Social Security number. Under a recent change in law, any ITIN not used on a tax return at least once in the past three years will expire on Jan. 1, 2017. In addition, any ITIN with middle digits of either 78 or 79 (9NN-78-NNNN or 9NN-79-NNNN) will also expire on that date.
This means that anyone with an expiring ITIN and a need to file a tax return in the upcoming filing season should file a renewal application in the next few weeks to avoid lengthy refund and processing delays. Failure to renew early could result in refund delays and denial of some tax benefits until the ITIN is renewed.
An ITIN renewal application filed now will be processed before one submitted at the height of tax season from mid-January to February. Currently, a complete and accurate renewal application can be processed in as little as seven weeks. But this timeframe is expected to expand to as much as 11 weeks during tax season, which runs from mid-January through April.
Several common errors are currently slowing down or holding up ITIN renewal applications. The mistakes generally center on missing information, and/or insufficient supporting documentation. ITIN renewal applicants should be sure to use the latest version of Form W-7, revised September 2016.
For a free consultation about individual or corporate taxes, please contact one of our locations at:
161 N.E 97th Street Miami Shores, FL 33138
157 NE 97TH ST
MIAMI SHORES, FL 33138
921 Sw 27 Ave 2c