Your tax refund will likely be smaller this year Here are more things to know : NPR

It may be a long and arduous process, and there’s no way around it. But the rewards are worth it – after all, US expats Top 5 Reasons Why Not Filing An Income Tax Return Is A Bad Idea valuable tax breaks unavailable to non-US expats. Hopefully, this guide helps you determine whether you’ll qualify for these benefits and how to go about applying for them. If you’re ready to be matched with a Greenback accountant, click the get started button below.

• The IRS doesn’t automatically issue refunds if you’ve overpaid your tax bill each year.
• By the way, earned income can come from a job as an employee or through self-employment.
• This substantial capital expenditure results in input VAT exceeding output VAT in the month of June.

It takes about six weeks for the IRS to process accurately completed back tax returns. The IRS charges a fee for the installment agreement unless you think you can pay your balance off within 180 days . This is considered a short-term payment plan and is fee-free, but you may still have to pay interest and applicable penalties until your balance is paid in full. Keep in mind that there are time limits for refunds, audits, and debt collection. In most cases, your refund “expires” three years from the date your tax return was due. She also notes that the IRS has already announced a change to its standard deduction for 2023 — raising it to $13,850 for individual filers (a $900 increase) and $27,700 for couples filing jointly (a $1,800 increase).

Fact 4: The mortgage interest deduction is also highly regressive

You may also wish to contact your home state’s 529 plan Program Administrator to learn more about the benefits that might be available to you by investing in the in-state plan. That’s why if you have credit card debt, consider using your tax refund to go toward paying that off first. Receiving a large tax refund can feel like you won the lottery.

That said, you still should aggressively explore and exploit any tax credits that apply to you. If you have failed to file tax returns for some years, it’s a good idea to look into the situation and see about filing those returns.

You Can Reduce or Eliminate US Taxes for Expats with the Foreign Earned Income Exclusion

You just gave Uncle Sam a year-long loan and he didn’t have to pay any interest on it. Form 1040EZ, used previously for simple individual taxes, is no longer valid for tax years 2018 and beyond as a result of the Tax Cuts and Jobs Act. This quick guide for parents covers the basic rules that you should know for determining when your child must file. It also offers suggestions for helping your child take responsibility for their own tax chores in the future.

If this happens, you should immediately notify the IRS that the action concerns a child. Dependents must file under certain circumstances if they have earned or unearned income. Most students are not taught how to file taxes in school, even though the Internal Revenue Service provides an entire website for educators . Reasons vary, from underfunding and a lack of student interest to a general failure of the education system to identify skills students need. Amanda Jackson has expertise in personal finance, investing, and social services. She is a library professional, transcriptionist, editor, and fact-checker.

You Need To File Your Tax Returns To Avoid Civil Penalties And Criminal Prosecution

Doing so could save you a lot of money in the form of penalties and interest. On the positive side, you may even make some money out of the process through refunds. In 2019, the IRS reported it had $1.4 billion in unclaimed refunds.

Consult a qualified tax professional to learn the rules for your state. If you move back to the US, you may still be eligible to use certain US expat deductions and exclusions that year, but you’ll need to file by April 18th because you are now a US resident.

Furthermore, the obligation to https://intuit-payroll.org/ tax is described in section 6151, which requires taxpayers to submit payment with their tax returns. Failure to pay taxes could subject the non-complying individual to criminal penalties, including fines and imprisonment, as well as civil penalties. Check out H&R Block Tax Audit & Notice Services to find a local tax professional who can navigate the IRS for you.