BANGOR, Maine — The Internal Revenue Service has some good news for taxpayers this year — especially for those who procrastinate.
“This year we don’t see a lot of tax changes,” said Peggy Riley, an IRS spokeswoman. “But at least one good one is because April 15 falls on a Sunday, and April 16 happens to be Emancipation Day in the District of Columbia and Patriot’s Day in Maine and Massachusetts, people have two extra days to file this year.”
There are some other potentially beneficial changes.
“There is a new form, the 8949, to report your capital gains and losses,” Riley said.
What may be of more interest to taxpayers are things that haven’t changed — but might in coming months.
“We did have that payroll tax deduction extended for two months through January and February. Right now we’re seeing more in our paychecks, but that could change come March if they don’t extend it,” Riley said, referring to Congress. “And there are a bunch of benefits that are set to expire unless they’re extended.”
Those benefits, still available to qualifying taxpayers filing their 2011 returns, include the American Opportunity Credit for people enrolling in higher education, the Enhanced Child Tax Credit, and the Expanded Earned-Income Tax Credit for people with three or more children.
“There are also some energy credits for people looking to make energy improvements to their homes set to expire after this return period,” Riley said in an interview. “And we’re promoting a health insurance deduction for small businesses that offer a plan to their employees and help pay for it.”
Riley also stressed the value of the Earned Income Tax Credit, calling it the most underused credit. It’s available to Americans who earned $49,078 or less last year. The income figure and credit are geared to their filing status and whether they have children.
“That’s the biggest one because they think it’s not for them, they don’t know about it, or they haven’t heard about it,” she said, “It’s a fluid amount of people who qualify for it each year.
“It’s a credit for only working people, so you have to have some income, and that’s an incentive to get people back into the work force and do better for themselves.”
Another lesser-known credit — the child and dependent care credit — will be of particular interest to parents.
“It’s a credit for parents who are paying someone to watch their children while they’re working,” Riley explained. “Even summer camps and programs, as long as they’re not overnight, can qualify as well.”
Once the entire amount paid for child care is determined, parents can be reimbursed a percentage.
Riley wants to further promote the fact that the IRS is available for help with filing and other tax-related issues — in person, by telephone or online.
The IRS Volunteer Income Tax Assistance program offers free tax help to anyone earning $50,000 or less while its Tax Counseling for the Elderly Program offers free tax help to anyone age 60 or older. More information can be found at www.IRS.gov, and people can call the IRS at 800-906-9887 to find the nearest Volunteer Income Tax Assistance site.
“We’ve also had the free file program for a number of years,” Riley added. “We have a list of 20 companies in partnership with us that offer free electronic filing for people earning $57,000 a year or less.”
More information is available online at www.irs.gov/freefile.
Riley also cautioned taxpayers against scams and identity theft schemes that always pop up at this time of year.
“We do see a lot of tax-related scams, especially when it comes to identity theft,” she said. “Most of them are made to look official regarding refunds rather than people owing the IRS money because people are more apt to respond to a potential refund. They’ll typically ask for [personal identification] numbers or credit card numbers or Social Security numbers, things the IRS doesn’t normally ask for.”
Anyone with questions or concerns about potential fraud or scams is urged to call 800-908-4490.
I wish they would just keep everything the same for once…
That’s were a flat tax would come in handy no deductions your income an say 15% tax
8% is more than enough
ok if you say so
It’s the way of the government and what keeps them in business. Filling out my income tax return increasingly irks the hell out of me as I get older for exactly that reason. They have incrementally made the thing so complicated that one almost feels he needs to see a tax person. I am in total agreement with washingtoncntyboy.
Anxious to see how it shapes up.
Hiring a professional is usually worth its weight in gold. Especially if you own 1 or more businesses. There is also a huge difference between tax professionals, often a second opinion is worth it, just like a doctor. If nothing else they can inform you of what changes to make for the next year. So, when you write that check, it isn’t as quite as painful.
I wish the IRS would go away for good. If they want to change anything change the earn income credits. The baby’s just keep falling out. Its hard to understand if you do not pay anything but have kids and live on the state you are able too get earn income credits. Or if you pay in 3 or 4 hundred you are able to get $3,500 to $4, 500 on youself and one child.This sad for the ones paying the taxes and get back crap.
Don’t worry, we need those kids to join the military someday. If the gov’t didn’t pay people to have kids we wouldn’t have enough enlistment in our military so it is a necessary evil.
Oyeah all over that comment. Just what we need we give them a EBT card and say go for it. Keep them baby’s dropping.
DOn’t forget to have them sign over the babys to the military so when they’re 18 THEY’RE IN, so they can pay the Govt. back what they are owed!
actually, that is a really mean and misguided statement. Our son is a major in the Army and could have attended any college he wanted. He is a graduate of Arizona State University and an officer in the Army. We are very proud of him. He has done two tours of duty overseas. One in Iraq and one in Afghanistan. His comment to you would be he does what he does so you can make ignorant statements like you just have….end of story
I think he was showing some sarcasm Val ie not dergrading the Major. You are right to be VERY proud of your son and I send him a Snappy salute and Thanks…PW
You must be a Democrat Leftist
“EARNED INCOME CREDIT” Means you have to “earn” income in order to receive it. You can’t collect on “benefits” alone…
Earned Income Tax Credit..it should be called the Unearned Income Tax Credit.
People who pay no federal taxes at all get money..hmmm.
It’s not just for people that haven’t paid any federal taxes LOL!
I for one appreciate the child credit. I’m a single mom who WORKS. And it helps us out greatly to get the things we need that normally we’re not able to go right out and get in example. clothing.. I do agree for the ones who don’t work or work just enough to be able to file they should not get it. But I pay taxes just like every normal person.. and greatly appreciate it.
It sounds like you are one of the people who uses the program the way that it was intended. I wish that was so across the board. I have known several people who work in industries where it is difficult for the government to know how much the person actually makes (waiting tables). Then when they file their tax returns they are told they are elliglible for the EIC. I also know people who get the max amount back every year and blow through the money within a week… only to sell the items a few months later (at greatly reduced) amounts because they can’t pay their bills.
But really I don’t see much help for the common tax paying working class who doesn’t have a child anymore.