As tax season approaches, eager Americans anticipating a substantial tax refund are advised to consider crucial tips before filing their returns. Barb Wollan, a human sciences specialist at Iowa State University Extension and Outreach, warns against filing too early, emphasizing the risk of overlooking essential information that may lead to amendments later. Wollan’s insights shed light on the significance of thoughtful consideration before diving into tax preparation.
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Cautionary Timing and Document Awareness
Wollan suggests avoiding filing before Feb. 1 or even Feb. 8 to accommodate potential late-arriving W-2 or 1099 forms. With income documents mandated to be mailed on Jan. 31, rushing may result in missing crucial data, especially regarding short-term or seasonal employment from the previous year.
While the IRS typically starts accepting electronic tax returns around Jan. 20, Wollan advises against mistaking an early visit to a tax preparer as an advantage. Unlike paper returns, filing electronically is encouraged for quicker processing, but timing advantages are minimal, given specific IRS restrictions on certain tax credits.
Wollan underscores the legal constraints that delay Earned Income Tax Credit on refunds or Additional Child Tax Credit until Feb. 15. Despite the slight queue advantage; taxpayers must wait until this date for larger refunds. Wollan also warns against quick refund offers, highlighting the associated fees and potential risks and urging individuals to exercise caution.
Free Tax Assistance Options and DIY Solutions
For those meeting income guidelines, Wollan recommends accessing free tax assistance at Volunteer Income Tax Assistance (VITA) sites staffed by IRS-certified volunteers. This offers a cost-free alternative and ensures accurate returns.
Wollan highlights options for individuals with incomes below $70,000 to prepare their tax returns for free. Interested parties can inquire at [email protected] to gain access to VITA software and receive support for addressing tax law queries.
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