 New York, NY - With millions of tax packages beginning to arrive in mailboxes this week, the Internal Revenue Service is reminding New York taxpayers to watch for commonly overlooked tax credits and late tax law changes that could affect their tax returns.
”The IRS will work to make this tax season as smooth as possible for taxpayers,” said Linda Stiff, Acting IRS Commissioner. “We encourage taxpayers to take a minute to look into late tax law changes and common tax credits. Filing electronically makes things easier, and it reduces errors and speeds refunds.”
The IRS will send 16.5 million 1040 tax packages to taxpayers this month who have filed paper tax returns in the past. The number of paper packages has dropped rapidly in recent years, falling from 34 million packages in just four years. The paper packages are becoming much less common as the popularity of electronic filing soars.
“In New York this year, we expect to receive to receive about 5.3 million e-filed returns and 3.5 million paper returns,” IRS New York Spokesperson Kevin McKeon said. “Nationwide, last year, nearly 80 million tax returns used e-file, representing about 57 percent of all returns.”
This year, the individual income tax packages mailed to taxpayers do not include any tax credit forms and certain other forms due to late tax law changes involving the alternative minimum tax (AMT) “patch.” Copies of these forms are available on IRS.gov. Taxpayers who e-file should update their tax software to ensure that they are using the updated forms.
The AMT changes also mean that as many as 13.5 million taxpayers using five forms related to the Alternative Minimum Tax (AMT) legislation will have to wait to file tax returns until the IRS completes the reprogramming of its systems for the new law. The IRS has targeted Feb. 11, as the potential starting date for taxpayers to begin submitting the five AMT-related returns affected by the legislation.
“Most individuals will not be impacted by the AMT legislation passed by Congress in December, so it is still a good idea to get an early start on your preparations,” McKeon said.
“Even if you are filing one of five forms affected by the recent legislation, the IRS expects to be ready for your return by February 11. You can review a list of the impacted forms and find out the latest news about when the IRS will be ready for your return at IRS.gov,” McKeon said.
“E-file is the fast, accurate and secure way to file. E-file with direct deposit gets refunds in as little as 10 days, while paper returns take four to six weeks,” McKeon said.
Taxpayers also should be aware of important tax credits that might be missed such as the Earned Income Tax Credit (EITC), the Saver’s Credit and the Child Tax Credit. Taxpayers must meet certain income limits for all three but tax credits such as these can significantly lower tax bills or increase refunds.
The IRS Web site, www.irs.gov, is the 24/7 source of information. Taxpayers can go to 1040 Central on IRS.gov to find the latest tax news, information about tax law changes, up-to-date publications and information about valuable tax credits.
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