Wondering about how to get fast tax refunds? If so, then you fall into the majority. We didn’t spend all that time and energy doing our taxes, just to let the IRS sit on our refund. We want the golden egg!
Lucky for you, there are multiple ways to set yourself up for success. That includes filing your returns as soon as you can. Also, planning your taxes so that you can be as efficient as possible when it comes to claiming your credits and deductions.
But the only way to do it right, is to have all the info at your disposal before you dig yourself into a hole. Believe me, I know. I was ignorant of the entire tax law at one time. I thought I would owe money, so I put off filing for an entire year, which ruined my tax season for several years afterward.
The IRS is pretty unforgiving about some mistakes. Which is interesting because it isn’t a part of school curriculum and therefore isn’t put on the same level as learning about finding the sine and graphing a parabola (thanks to my favorite math teacher, I will never forget this).
When can I start filing taxes for 2020?
The IRS put out a notice. They will begin accepting tax returns January 27th for the 2019 tax returns.
How do I prepare my taxes for 2020?
Well, firstly you are going to need your records. Receipts, w-2, 1099, and any other forms that you received in 2019. The more receipts you kept, the better. In case you get audited, which happens to less than 1% of the population.
Then, it’s pretty straightforward. So, who is going to be preparing your taxes? Is it you, a CPA, a certified tax specialist? Are you going to need a tax lawyer to advise you? That’s your next step. Also, make sure that if you are paying someone else to do your taxes, that they have a PTIN (Preparer Tax Identification Number). The IRS have an online resource that can help you understand how to choose the right tax preparer.
Once you’ve figured out who’s going to be doing the heavy lifting, then your preparer fills out the forms and they are mailed out. Or, you fill out the forms and mail them, if you are preparing your own.
How much do you have to make to file taxes in 2020?
The minimum amount you have to make to be required to file taxes will depend on your filing status and your age. See below:
- Single filing status:
- $12,200 if under age 65
- $13,850 if age 65 or older
- Married filing jointly:
- $24,400 if both spouses under age 65
- $25,700 if one spouse under age 65 and one age 65 or older
- $27,000 if both spouses age 65 or older
- Head of household:
- $18,350 if under age 65
- $20,000 if age 65 or older
- Qualifying widow(er) with dependent child:
- $24,400 if under age 65
- $25,700 if age 65 or older
Will returns be bigger in 2020?
That completely depends on the individual, but because of the new tax code changes that rolled out under the Tax Cuts and Jobs Act of 2017, the general answer is YES!
The Income Tax Brackets are higher. Consequently, you will have to make more money before you can be taxed at a higher income bracket.
Standard deductions are also higher now, which is awesome. But not by much. The increase is an extra $200. Every little bit helps though, right?
You can also, add more money to your Health Savings Accounts and 401k’s. Which is less money you are taxed on.
Alimony is no longer deductible and last not but not least ( my personal favorite). You will no longer be fined for not having health care!
Taxes: How the Rich Safeguard their Wealth
Is it hard to do your own taxes?
No! Preparing your own returns is actually quite simple and straightforward. The reason people think it’s difficult, is because there are people who get paid money to do it for you and it’s not cost effective for them to tell you this.
You probably didn’t know this, but Turbo-Tax and HnR Block spent billions to lobby for IRS NOT to make filing taxes any simpler than it already is.
Time consuming. That’s what it is. You have to pay attention to detail and fill out forms correctly. But for those of you will simple tax returns, that still only equates to a simple 1040 and an itemized deduction form. Both of which can be downloaded and printed out directly from the IRS website. In fact, every form in use can be downloaded, for FREE, and printed from their website.
The reason we pay tax preparer’s is because we don’t want to learn tax code ourselves. We don’t want to spend the time doing the filing. And we don’t want to figure out what credits and deductions we qualify for. Jokes on us really though, because unless we tell them, they don’t know what credits and deductions we qualify for besides the basic common ones anyway.
How much should I pay my tax preparer?
There are a ton of different places that you can get your taxes done? Some will say free (IRS has one), and some charge exorbitant fees. But the average price for someone filing single is approx $170 for a simple federal 1040 form. Add another $100 for state. If you do it yourself, then it costs the price of printing and mailing.
And those prices are only for a tax preparer, some people have a CPA (certified public accountant) that manages their books as well as prepares and plans their taxes. Some people have a 3 in one with a CPA who also is a tax lawyer to do this. So, it depends on who you are hiring and what their duties will be.
What do I need to bring to my tax appointment?
Firstly, dig up your old tax returns. At least last years.
Did you work a job: W-2. Did you buy anything or pay for anything, receipts. Mileage for your car, if you used it for work or a business. Dimensions of your home office, log book of your gambling losses, etc.
Basically, records. Every record you have of every penny you made or spent from January 1st to December 31st.
Is there a tax credit for buying a home in 2019?
There used to be a first time home-buyers credit. It no longer exists. Fortunately, many states like Texas, offer a similar state tax credit. But don’t be discouraged, you can deduct the interest you paid on your mortgage, property taxes, home repairs and additions, etc.
What documents do I need for taxes if I bought a home?
You are going to want to bring your property tax statements, your 1098 (proof of interest paid on mortgage), a mortgage credit certificate, and any settlement statements you have. Don’t forget to bring receipts of any repairs or construction.
How do I maximize my tax return?
Credits, deductions, filing status, and due diligence.
Make sure you are claiming every possible credit available that you qualify for. Don’t leave a single penny on the table. Research deductions and figure out which ones you qualify for so that you can file efficiently. Double check to make sure you have the correct filing status. And keep every receipts.
Additionally, start preparing yourself for next years filing season. With a proper tax plan in mind, you can make money and purchases that will benefit you come April 15th of the next year.
When can I expect my refund?
Short answer…February 28th in the earliest these refunds are gonna drop. But we aware, that doesn’t mean you will gt it that that day. February 28th is for people who are getting their refunds with direct deposit, and had no issues with their filing.
Returns are usually accepted within 24 hours but not always. And no fewer than 8 days later is when the refunds are deposited…on a Monday. It’s on a first come, first serve basis. So if Sally files a week after Thomas, barring incident and all other things being equal, she will receive her refund a week after Thomas.
Can I speed up my refund?
The only way to speed up your refund during filing is to have it direct deposited to your bank account. Speeding up your refund is something you should be working on before it’s time to file your taxes. And by that, I mean, making sure you already have your information and receipts and preparation done. The best thing you can do, is already be filing the instant it’s possible, with an accurate return and direct deposit. That way, you will be one of the first people to receive your refund.
How can I check my tax refund if I don’t know the amount?
You can’t! I know, it sucks, but you absolutely need to have your filing status, social security number and the exact whole dollar amount of the refund.
Why are my taxes still pending?
Don’t panic! The IRS will hold all returns in backlog until they begin processing them. Once they begin processing the refunds, they have to go through all the ones that were submitted before your. A status of pending only means they haven’t accepted or rejected the return yet. Which means they need more time. Most likely, they haven’t gotten to it yet.
Only in some cases do the specific returns take more time themselves because of discrepancies or mistakes. But even then, no need to worry. The issues usually have to do with you not paying enough attention to detail and putting the wrong information on a form or two. Just hold tight and keep checking back.
Why is the IRS holding my refund for 60 days?
There are several reasons the IRS may hold or stop your refund.
Do you ow back child support, unpaid state taxes? Have you stopped paying on your student loans or owe back taxes? Did you fail to file last year or the year before?
If yes, the IRS can freeze your refund until you’ve paid those charges.
The IRS may also freeze your refund if they think you’ve made mistakes on your return or think you’ve been lying about your deductions. If they have questions about your past taxes and are auditing them, they may halt your current return as well.
What can I do is the IRS is holding my refund?
You can call the IRS toll-free at (800) 829-1040. Be aware that during tax season, there is a high volume of calls and your wait time will be significantly longer.
There is technically no limit to the amount of time they can hold your refund but 45 days from your filing deadline, they have to start paying interest on the refund. And after 6 months you can sue them!
Why is IRS reviewing my return?
The IRS may review a return because of the Discriminant Function System (or DIF) score. They use a computer that goes through your return and scores it based on the chance that it will need to be changed.
Be patient! It can take anywhere from 6 to 8 weeks for the IRS to complete their review process.
Can I get a tax advance online or a loan against my refund?
Yes you can! You may have financial obligations that require cash now. Maybe you can’t wait for the IRS too send out your money in a few weeks. You can usually use your refund as collateral and get an advance or loan within 48 to 72 hours of acceptance. There are multiple companies that offer those services, like Turbotax. They will usually give you a maximum advance of $2,000.
But be aware that these types of arrangements always cost you. And if, for some reason, your refund is held up unexpectedly, or your ex cleans out your joint account as soon as the money is deposited, you may be on the hook to pay back money you don’t have. With interest!
So, be proactive about your taxes! File early. Keep all your receipts. Pay attention to details. Learn about Credits. Obsess over deductions. And for Pete’s sake, start planning out what you want your next tax season to look like now.
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