Every tax season is unique and 2016 is shaping up to be one for the record books. We dodged a bullet with the new tax law legislation that passed "early" in late December, which allowed an on time start to tax season without many changes to systems because the extenders passed - again. Even with that big issue avoided, there have been other issues during the start of tax season that may have concerned some taxpayers. Some companies reported delays to issuing select new ACA or Affordable Care Act forms, Wage and Tax Statements or Forms W-2 for some companies were sent a bit later this year, IRS even had a total system crash last week stopping all tax returns from being processed for over a day, and tax refunds seem to be slower this year than last. All taken together, you could get a little worried about filing your taxes this year.
However there is light at the end of the tunnel and the best idea is still to file as early as you can. The good news is the IRS says 9 out of 10 filers will get their refund in less than 21 days from the time their return is received. This year, with plenty of deductions and tax credits still in place - 75 percent of filers will get a refund of almost $3,000 per return. Further, even with the IRS system outage - it was only one day, all things are processing as fast as ever, and tax returns and refunds are continuing to be processed. It has been reported that most other documents needed before filing, including Forms W-2, 1099, and even the ACA statements from the Healthcare Marketplaces, have been sent to the taxpayers who need them. Even those other ACA healthcare forms, 1095 B and 1095 C, are mostly out and those are not even needed to complete and file a tax return.
In summary what does this mean for you? If you have filed your tax return already, good job! Check your return over, or have a tax pro check it over, to make sure you didn't leave any money on the table. Many taxpayers leave off deductions and credits just because they don't know about them, but more about this next week.
If you haven't filed your tax return yet, what do you need to know?
- Gather all your income statements - all W-2s and 1099s have been mailed by now. If you have not received a form you are expecting, contact the issuer and verify it has been sent. You can ask for a copy to be resent.
- Review your healthcare forms - either your Form 1095 A, B, or C. If your health insurance is subsidized through the Marketplace - Forms 1095-A have been mailed! If you are still waiting on your 1095 B or 1095 C there is no need to worry since in most cases you can still get your taxes complete even without that form.
- File as soon as you can - by e-filing as early as possible and using direct deposit, you help secure your personal information.
- Get help if you need it - most tax offices are fully staffed and ready to help get your taxes done. IRS is processing fully and refunds are being issued, which means taxpayers are getting their money
If you were one of those folks waiting to file your taxes to see how this unusual tax season start was going to pan out - now is the time to file. Tax pros understand the tax law changes, required documents should be in your hands, and the IRS systems are fixed. There are no more reasons to wait for your money.