E-File is Now Open: File Your Taxes Early For a Faster Return
The 2016 tax season has officially begun today, January 19, as the IRS is now accepting e-filed tax returns. It’s common for taxpayers to keep putting off their taxes until the last minute, but why wait? The faster you file, the faster you can get your return. The IRS reported that around 75% of taxpayers got a refund last year. You can get started now and see what your tax refund is going to be for this year.
Not convinced? Before you resort back to the normal procrastination ways, we’ve prepared 5 advantages to starting your taxes earlier.
1. Get Your Tax Refund Quicker
It’s most common that tax filers receive a refund, and on average that refund was close to $2,800. For this year the IRS is planning to be able to issue 9 out of 10 refunds within 21 days or less with e-file and direct deposit. No one has ever complained about receiving money faster. Think how nice it will be to have some extra cash to pay off credit card debt, student loans, car payments, or just have some extra money to spoil yourself.
2. Filing Online Is Simpler Than Ever
With the US Tax Center at IRS.com doing your taxes online has never been easier. Once you have received your tax forms you simply head online and answer the simple, personalized questions to obtain your maximum tax refund. There’s no need to wait in line at a tax store when you can do it all yourself from the comfort of your living room.
3. Eligibility to File For Free
Americans who file simple federal returns (1040EZ) can take advantage of absolutely free tax filing online with the US Tax Center.
4. Receive the Newest Tax Forms
In 2016 you may receive health care forms that you haven’t seen before. Americans who have health insurance through their employer, Medicaid, or Medicare will find reporting their health insurance is as easy as checking a box. Those who purchased in the Marketplace can enter their insurance information in a similar fashion to entering a W-2. There is no extra charge for healthcare forms, and the form information can be found below.
Form 1095-A is for those who purchased health insurance through the Marketplace, either Healthcare.gov or a state marketplace. You will need to receive this information to file your taxes, and once you do, reporting 1095-A is as easy as entering a W-2 with the US Tax Center.
Form 1095-B comes from your health insurance provider if you bought directly from the insurance company or a government plan like Medicaid, or will come from your employer if your workplace has less than 50 employees. Per the IRS, you won’t need this to file taxes. Simply check this form for accuracy and save it for your records.
Form 1095-C is very similar to 1095-B. It may be sent by employers with more than 50 full-time workers, and if you know your coverage status, you won’t need this form to file your taxes.
5. Extra Time to Pay Taxes if You Owe
The sooner you prepare and file your tax return the sooner you will know if you are getting a refund or if you owe money to the IRS. Know that you do not have to pay the taxes that you owe until the filing deadline in the middle of April. Preparing your taxes early will give you more time to figure out how you’re going to make tax payments in case you owe.