The views expressed in Economy Matters are not necessarily those of the Federal Reserve Bank of Atlanta or the Federal Reserve System.
Editor's note: Throughout Economy Matters, "Southeast" refers to the six states that, in whole or in part, make up the Sixth Federal Reserve District: Alabama, Florida, Georgia, Louisiana, Mississippi, and Tennessee.
Financial Tips from the Atlanta Fed: Tax Filing Time
Nota del editor: Este artículo también está disponible en español.
Tax season is in full swing. Normally, taxpayers expect to have a tax filing deadline of April 15, but this year the tax filing deadline for most taxpayers will be Monday, April 18, due to some state-specific holidays. The amount that each person owes in federal income taxes varies based on factors such as adjusted gross income, tax deductions, tax rate, tax liability, tax credits, and more. Use these tips to learn more about the various tools and resources available to taxpayers.
- The Internal Revenue Service (IRS) offers free online tax preparation to taxpayers with an adjusted gross income of $73,000 or less through the IRS Free File program. Free basic tax return preparation in your local area may also be available through programs such as the IRS Volunteer Income Tax Assistance and Tax Counseling for the Elderly. Taxpayers making $58,000 or less, persons with disabilities, taxpayers with limited fluency in English, and people age 60 or older qualify.
- You may be eligible for various tax credits such as the Earned Income Tax Credit, Child Tax Credit, and other tax benefits. This guide to filing your taxes provides insights on these tax benefits as well as shares strategies for making a plan for your tax refund.
- If you have had a job change, received a large tax refund last year, or were affected by the Tax Cuts and Jobs Act, the IRS suggests using its tax withholding estimator to ensure that you withhold the right amount of tax from your paycheck. Any changes made to withholdings will affect your current year taxes.
- Be aware that IRS imposter scams may come via phone, email, or in person. These scams often demand immediate payment and may threaten actions by law enforcement. Learn more about how to identify, avoid, and report scams.