Direct deposit is the fast, easy and safe way to receive your tax refund. Whether you file electronically or on paper, direct deposit gives you access to your refund faster than a paper check.
Here are four reasons more than 80 million taxpayers chose direct deposit in 2012:
1. Security. Every year the U.S. Postal Service returns thousands of paper checks to the IRS as undeliverable. Direct deposit eliminates the possibility of a lost, stolen or undeliverable refund check.
2. Convenience. With direct deposit, the money goes directly into your bank account. You will not have to make a special trip to the bank to deposit the money yourself.
3. Ease. It’s easy to choose direct deposit. When you are preparing your tax return, simply follow the instructions on the tax return or in the tax software. Make sure you enter the correct bank account and bank routing transit numbers.
4. Options. You can deposit your refund into more than one account. With the split refund option, taxpayers can divide their refunds among as many as three checking or savings accounts and up to three different U.S. financial institutions. Use IRS Form 8888, Allocation of Refund (Including Savings Bond Purchases), to divide your refund. If you are designating part of your refund to pay your tax preparer, you should not use Form 8888. You should only deposit your refund directly into accounts that are in your own name, your spouse’s name or both if it’s a joint account.
Some banks require both spouses’ names on the account to deposit a tax refund from a joint return. Check with your bank for their direct deposit requirements.
Tax On Wheels, LLC encourages all clients to use direct deposit whenever possible. Direct deposit increases security, speed and saves you a trip to the bank. Call us at 803 732-4288 if you have questions about your refund.
Tax On Wheels, LLC received the following message from the South Carolina Department of Revenue and we pass it along for your consideration.
Tax Professionals: Encourage Electronic Filing This Tax Season
The South Carolina Department of Revenue places the highest priority on safeguarding taxpayer information entrusted to it by all taxpayers. The electronic filing of tax returns with the Department has always been, and will remain, a safe, secure and efficient means of filing.
In light of the recent computer security breach, it is important to note that no data was lost in the transmission of tax information upon submission to or from the Department. Confidential information that was stored on the Department’s computer servers was hacked into and then stolen in a criminal act.
Since this incident, measures have been taken to heighten the protection of confidential data so as to avoid future security compromises, and upon recommendations from cyber-security experts, additional security safeguards have been implemented and will continue to be further established in the future.
Taxpayers are safe and secure in filing their state tax returns electronically as it is the most efficient means of filing for taxpayers. As tax professionals, you are aware that with electronic filing comes many advantages for the taxpayer including receiving a refund in a shorter amount of time as well as less opportunity for errors.
Throughout the individual income tax filing season, information will be provided to the public as it is available. Our goal is to keep taxpayers informed and aware of any helpful information regarding the filing of tax returns and ensure to the public that filing electronically with the Department is secure. Current information that may be useful throughout the individual income tax season is available online at www.sctax.org under the “Individual Income” link.
Security safeguard measure implemented to aid in the prevention of tax fraud
Columbia, SC (February 11, 2013) — New for 2013, the SC Department of Revenue (DOR) has implemented a security safeguard measure to help prevent fraud-related individual income tax filings.
Through the security program, income tax returns filed in 2013 will be processed by means of a new security safeguard measure in order to insure no fraudulent activity. For tax returns that are questionable, DOR will mail the taxpayer a letter asking for additional information in order to complete the processing of the return. The letter will detail instructions for the taxpayer to either go online or to call DOR in order to answer questions specific to the individual. Once this process has been successfully completed, the tax refund will be issued to the individual.
The goal of the security program is to protect taxpayers from fraud by individuals filing tax returns in a legitimate taxpayer’s name. Additionally, DOR has implemented the program in an effort to decrease the number of fraudulent tax returns and, subsequently, decrease the issuance of fraudulent tax refunds.
Income tax filing
In keeping with filing dates of the Internal Revenue Service, DOR opened the 2013 electronic filing season for processing on January 30. It is the goal of DOR to assure taxpayers that filing electronically is and has always been a secure method, and taxpayers should continue to utilize this means of filing as it is more efficient than filing paper returns.
Its official.
WASHINGTON — The Internal Revenue Service announced today that taxpayers will be able to start filing two major tax forms next week covering education credits and depreciation.
Starting Sunday, Feb. 10, the IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization. And on Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits.
This step clears the way for almost all taxpayers to start filing their tax returns for 2012. These forms affected the largest groups of taxpayers who weren’t able to file following the Jan. 30 opening of the 2013 tax season.
The IRS will be able to accept the education credits and depreciation forms following the completion of reprogramming and testing of its systems. Work continues on preparing IRS systems to accept the remaining tax forms affected by the American Taxpayer Relief Act (ATRA) enacted by Congress on Jan. 2.
The IRS also announced today it will start accepting the remaining forms affected by the January legislation the first week of March. A specific date will be announced later. Most of those in this group file more complex tax returns and typically file closer to the deadline or obtain an extension. A full list of the forms that will be accepted the first week of March is available on IRS.gov.
Next week’s opening covers two groups of taxpayers using:
Tax On Wheels, LLC is ready to assist you with your delayed return, just give us a call at 803 732-4288.
We just received the following flash alert.
Effective 9:00 am Eastern time on Sunday, February 10, 2013, the IRS will start processing 2012 returns that contain Form 4562, Depreciation and Amortization. This will include the Form 1040-family tax returns, Form 1065/1065-B, Form 1120-family tax returns and Form 990-family tax returns.
On Thursday, February 14, 2013, the IRS plans to start processing 2012 returns that contain Form 8863, Education Credits.
This will undoubtedly make many of you really happy. If your return has been delayed because you have one of these delayed forms on your return your wait is almost over. Contact Tax On Wheels, LLC at 803 732-4288 to proceed with the processing of your return.
IRS e-file makes it easy for taxpayers to choose which tax form to file. Tax software automatically chooses the best form for your particular situation. Most people e-file these days, but if you prefer taking pen to paper, the IRS has some tips to help you choose the right form.
Taxpayers who choose to file a paper tax return should know that the IRS no longer mails paper tax packages. The quickest way to get forms and instructions is by visiting the IRS website at IRS.gov. You can also order forms and have them mailed to you by calling the IRS forms line at 1-800-TAX-FORM (829-3676). You may also pick up tax forms from a local IRS office, and some libraries and post offices carry tax forms. Most IRS forms and publications are available here on this website under the “Resources” tab or by clicking here
Here are some tips that will help paper tax return filers choose the best tax form for their situation.
You can generally use the 1040EZ if:
If you can’t use Form 1040EZ, you may qualify to use the 1040A if:
You claim adjustments to income for IRA contributions and student loan interest.
If you cannot use the 1040EZ or the 1040A, you’ll probably need to file using the 1040. The reasons you must use the 1040 include:
IRS Publication 17, Your Federal Income Tax, provides helpful information about which form is best for you. Everyone can use the 1040 form, even if you qualify for one of the simpler forms. Tax clients of Tax On Wheels, LLC will notice that everyone is placed on the 1040. It is just simpler to have one form for administrative purposes but there is no loss of accuracy by using a more complicated form.
Access to IRS forms and instructions or information about e-filing is available 24 hours a day, seven days a week on IRS.gov. Tax products often appear online well before they are available on paper. You’ll find downloadable tax products on IRS.gov by clicking on the “Forms and Pubs” link on this website.
Tax On Wheels, LLC endeavors to empower consumers with the knowledge and skills to understand and manage their own tax affairs; that’s why we post this information to the web. However, not everyone is built to handle their own tax affairs; that’s why we are here. If after taking a look at those forms you decide that you would rather have some assistance with your tax obligations please give feel free to give us a call at 803 732-4288 to see if we can help you.
If you haven’t tried IRS e-file before, now is the time. Most taxpayers – more than 80 percent – file electronically. The IRS has processed more than 1 billion individual tax returns safely and securely since the nationwide debut of electronic filing in 1990. Fewer people file a paper tax return every year. Here are five good reasons to e-file your tax return:
1. Accurate and complete. E-file is the best way to file an accurate and complete tax return. Tax returns that are incomplete or include errors take longer to process.
2. Safe and secure. Tax preparers and software companies who e-file must meet strict guidelines and provide the best in encryption technology. You receive an acknowledgement within 48 hours that the IRS received your tax return. If the IRS does not accept your tax return, you will receive notification and can quickly correct your return and resubmit it.
3. Faster refunds. An e-filed tax return usually means a faster refund compared to a paper return. The IRS issues most refunds in less than 21 days. If you choose direct deposit, your refund goes directly into your bank account. Combining e-file with direct deposit is the fastest way to get your refund. About three out of four taxpayers who file receive a tax refund. Last year the average refund was about $2,700.
4. Payment options. If you owe tax, you can e-file early and set an automatic payment date anytime on or before the April 15 due date. You can pay by check or money order, by debit or credit card, or by transferring funds electronically from your bank account.
5. It’s easy. You can e-file on your own through IRS Free File, the free tax preparation and e-filing service available exclusively at IRS.gov. You can also use commercial tax preparation software or ask your tax preparer to e-file your return. And, if you qualify, IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly partners will e-file your return for free.
For more information about IRS e-file you may call Tax On Wheels, LLC at 803 732-4288
The South Carolina Department of Revenue places the highest priority on safeguarding taxpayer information entrusted to it by all taxpayers. The electronic filing of tax returns with the Department has always been, and will remain, a safe, secure and efficient means of filing.
In light of the recent computer security breach, it is important to note that no data was lost in the transmission of tax information upon submission to or from the Department. Confidential information that was stored on the Department’s computer servers was hacked into and then stolen in a criminal act.
Since this incident, measures have been taken to heighten the protection of confidential data so as to avoid future security compromises, and upon recommendations from cyber-security experts, additional security safeguards have been implemented and will continue to be further established in the future.
Taxpayers are safe and secure in filing their state tax returns electronically as it is the most efficient means of filing for taxpayers. As tax professionals, you are aware that with electronic filing comes many advantages for the taxpayer including receiving a refund in a shorter amount of time as well as less opportunity for errors.
Throughout the individual income tax filing season, information will be provided to the public as it is available. Our goal is to keep taxpayers informed and aware of any helpful information regarding the filing of tax returns and ensure to the public that filing electronically with the Department is secure.
Current information that may be useful throughout the individual income tax season is available online at www.sctax.org under the “Individual Income” link.
Courtesy Drake Software
WASHINGTON – The Internal Revenue Service announced that processing of tax returns claiming education credits will begin by the middle of February.
Taxpayers using Form 8863, Education Credits, can begin filing their tax returns after the IRS updates its processing systems. Form 8863 is used to claim two higher education credits — the American Opportunity Tax Credit and the Lifetime Learning Credit.
The IRS emphasized that the delayed start will have no impact on taxpayers claiming other education-related tax benefits, such as the tuition and fees deduction and the student loan interest deduction. People otherwise able to file and claiming these benefits can start filing Jan. 30.
As it does every year, the IRS reviews and tests its systems in advance of the opening of the tax season to protect taxpayers from processing errors and refund delays. The IRS discovered during testing that programming modifications are needed to accurately process Forms 8863. Filers who are otherwise able to file but use the Form 8863 will be able to file by mid-February. No action needs to be taken by the taxpayer or their tax professional. Typically through the mid-February period, about 3 million tax returns include Form 8863, less than a quarter of those filed during the year.
The IRS remains on track to open the tax season on Jan. 30 for most taxpayers. The Jan. 30 opening includes people claiming the student loan interest deduction on the Form 1040 series or the higher education tuition or fees on Form 8917, Tuition and Fees Deduction. Forms that will be able to be filed later are listed on IRS.gov.
Updated information will be posted here or you may contact us at 803 732-4288.
If you received income during 2012, you may need to file a tax return in 2013. The amount of your income, your filing status, your age and the type of income you received will determine whether you’re required to file. Even if you are not required to file a tax return, you may still want to file. You may get a refund if you’ve had too much federal income tax withheld from your pay or qualify for certain tax credits.
You can find income tax filing requirements on IRS.gov. The instructions for Forms 1040, 1040A or 1040EZ also list filing requirements. The Interactive Tax Assistant tool, also available on the IRS website, is another helpful resource. The ITA tool answers many of your tax law questions including whether you need to file a return.
Even if you’ve determined that you don’t need to file a tax return this year, you may still want to file. Here are five reasons why:
1. Federal Income Tax Withheld. If your employer withheld federal income tax from your pay, if you made estimated tax payments, or if you had a prior year overpayment applied to this year’s tax, you could be due a refund. File a return to claim any excess tax you paid during the year.
2. Earned Income Tax Credit. If you worked but earned less than $50,270 last year, you may qualify for EITC. EITC is a refundable tax credit; which means if you qualify you could receive EITC as a tax refund. Families with qualifying children may qualify to get up to $5,891 dollars. You can’t get the credit unless you file a return and claim it. Use the EITC Assistant to find out if you qualify.
3. Additional Child Tax Credit. If you have at least one qualifying child and you don’t get the full amount of the Child Tax Credit, you may qualify for this additional refundable credit. You must file and use new Schedule 8812, Child Tax Credit, to claim the credit.
4. American Opportunity Credit. If you or someone you support is a student, you might be eligible for this credit. Students in their first four years of postsecondary education may qualify for as much as $2,500 through this partially refundable credit. Even those who owe no tax can get up to $1,000 of the credit as cash back for each eligible student. You must file Form 8863, Education Credits, and submit it with your tax return to claim the credit.
5. Health Coverage Tax Credit. If you’re receiving Trade Adjustment Assistance, Reemployment Trade Adjustment Assistance, Alternative Trade Adjustment Assistance or pension benefit payments from the Pension Benefit Guaranty Corporation, you may be eligible for a 2012 Health Coverage Tax Credit. Spouses and dependents may also be eligible. If you’re eligible, you can receive a 72.5 percent tax credit on payments you made for qualified health insurance premiums.
Want more information about filing requirements and tax credits? Contact Tax On Wheels, LLC at 803 732-4288.