Farewell, holiday season. Hello, tax season.
The next arrival you can expect in the mail won't be a tardy Christmas card but a 1099 or W2 form.
It's goodbye to the holiday season and hello to the beginning of tax season.
Although the Internal Revenue Service has not yet announced a date that it will begin accepting individual tax returns for the 2018 tax filing season, the IRS is continuing to update its programming and processing systems for 2018.
Still, Dewaine Gillott, the owner of Gillot Jackson Hewitt Tax Service, 324 S. Main St., has already been busy preparing forms to get taxpayers express refund advances.
“These aren't loans. We calculate a person's return based on the W2s and pay stubs,” said Gillott. “There are no fees and charges. A lot of people want to do it before Christmas so they have money.”
When the tax returns are filed later this month, the advances are repaid with the taxpayer's refund.
Meme Hartman of Hartman Tax Service, 104 Pine Drive, said, “File your tax return by April 17. The due date is April 17 instead of April 15 because of the Emancipation Day holiday in the District of Columbia — even if you don't live in the District of Columbia.”
Gillott said, “Any tax returns e-filed with the earned income tax credit will be held by the IRS until February to verify the information with the W2s. They are checking for fraud.”
Hartman said taxpayer identification requirements include Social Security numbers for all members of a household and proof of identity such as a Pennsylvania driver's license or state identification card for adults and birth certificates and Social Security cards for children.
And for all the news about tax reform, none of the new provisions will affect filing this year's tax return.
“The new provisions will have no bearing on this year's tax returns,” said Gillott.
As for the next year, Gillott said, “I've briefly looked over them (the tax code changes). The biggest thing is the standard deduction doubled.”
Using 2016 figures (the latest available), the standard deduction for single people is $6,300, and for married couples it is $12,600.
The new tax code roughly doubles the standard deduction, to $12,000 for single people and $24,000 for couples.
Also, he noted, the penalties for not having health insurance rise to $695 for each uninsured adult and $347.50 for each uninsured child.
Gillott said, “The biggest thing now is trying to eliminate fraud. We (tax preparers) have to do our due diligence and check rent receipts and doctors' bills.”
Hartman agreed saying “Preparers cannot take your word on income or deductions.”
Taxpayers will have to back up income claims with W2s, 1099s and self-employment accounting records and deductions with receipts, bank statements and canceled checks, she said.
The IRS says red flags that might bring special attention to a taxpayer include:
n Not filing a return. If you don't file a tax return for any reason, the IRS may contact and question you. Even if you had no income in the tax year or had no taxes due, you still need to file a return, explaining that you have no income and/or demonstrating that you have no taxes due.
n Not having income. Odds of being audited are higher if you report no income — even if you've filed a return. For example, if you have your own business and you posted a net loss for the year, the IRS might want to double-check to make sure you're not pulling a fast one.
n Don't omit information. If you fail to report any income or omit any other information, that can raise flags at the IRS and trigger an audit.
Even if it's just a tiny dividend payment you don't want to bother mentioning, it needs to be included — not only because it's the right thing to do, but also because the IRS probably already knows about it and will wonder why you haven't mentioned it.
Pennsylvania Secretary of Banking and Securities Robin L. Wiessmann is offering 10 resolutions to help consumers protect and grow their money in 2018.“Financial capability is essential for Pennsylvanians to secure their financial futures and make well-informed decisions about their money,” said Wiessmann. “These resolutions offer straightforward, practical ways to approach saving, investing, and guarding one’s finances as steps to establishing a solid financial foundation heading into the New Year.”Wiessmann encourages consumers to consider the following 10 New Year’s resolutions for 2018:-Take time to change or reset all your passwords. Changing your passwords will help prevent hackers from accessing your accounts to steal your financial and personal information.XX Investigate before you invest. Before spending your time and money on a financial service, product, or company, contact the department at 1-800-PA-BANKS to get started.-Pay cash for your big expenses this year, such as vacation or Christmas shopping. Avoid taking on debt from big purchases. Banks and credit unions can offer a safe place to deposit your money for these short-term goals, and some even offer special savings accounts.-Start saving for your future. No matter how much or how little, getting started now ensures that time is on your side through the power of compounding interest:-Pull each of your credit reports this year. You are entitled to a free credit report from each of the three nationwide credit reporting companies – Experian, Equifax, and TransUnion – each year. Rather than checking them all at the same time, you can instead check one every four months to monitor your credit throughout the year.-Create a realistic spending plan. Department of Banking and Securities staff travel across Pennsylvania to present a variety of programs – including “Spending Plans” -- at community groups. Contact informed@pa.gov to book a presentation.-Learn to protect yourself from financial fraud and scams. Scams and schemes may take different forms, but the underlying method usually preys on your emotions, circumstances or your lack of knowledge.-Learn more about how the Equifax breach, or any data breach, could affect you. The Equifax data breach will affect people for months and even years.-Check on the senior citizens in your life and report any signs of elder financial abuse.-Protect yourself from ID theft. While technology has made some tasks easier, it has also made it easier for scammers to steal your personal information and financial security.
