Taxes

Necessary Tips for Taxpayers According to New Budget Cut

taxpayersWe should prepare for difficult year, and it will be tough for taxpayers and the Internal Revenue Service as well. The financial assistance that is given by the federal agency is now proposed for fewer taxpayers, because there are fewer employees who are specialized in such a help.

That is why we have collected some advices from financial specialists to help you face the beginning year with no hurt to your finance.

E-file your return

In this year taxpayer are required to make electronic file for the refund. This will give them an opportunity to get the refunds back during 22 days. In comparison paper file has to wait twice as long. In this year due to the lack of workers the wait period for the refund can be extended by a week, and in result it will continue for period of five to seven weeks.

The program of Free File is launched by the IRS and each person that earns less than $60,000 can use it. And this is more than 70% of all taxpayers or 100 million people.

This program is becoming known and popular, as in the past year 3.3 million returns were done using Free File, and this is at 10% more than in the previous one. To use this program you should make an agreement with IRS and 14 companies that are included in Free File Alliance.

New options to get health care

The other changes have touched the health care. In this year taxpayers are obliged to give the information about their health care coverage under the Affordable Care Act and the FATCA.

These taxpayers who get their health insurance through work or special programs like Medicaid will have fewer problems doing the process. They are just required to indicate in their Form 1040 return that they had health coverage in 2014.

But the new form is created for those who have their coverage through state and federal marketplaces. Moreover people who get subsidies will be obliged to give even more detail information.

People who had no health coverage last year will be charged fines unless they apply for a relinquishment, which needs more paperwork. As alternative opportunity such people can turn to reliable Personal Money Service that will help in monetary emergency.

The forms to wait for

Taxpayers need all the data to make an accurate return, so they have to wait for information returns such as W-2s or 1099s. For some taxpayers the information from the form 1095-A is necessary, and they will receive it from the Health Insurance Marketplace. And if you have some amended return to file, it will delay the whole process, as well as the refund process.

Find information for yourself

Today there is a lot of information provided in the Internet, so all clients who have some problems or misunderstanding are encouraged to look for necessary answers online on the websites of the agency.

You can easily find information connected with your refund status, pay the taxes using secure, quick and easy service online.

So people should call the free help lines if only they have serious problems which they canít solve by themselves. However the agency expects itsí call lines to be very busy, so any client might wait around an hour. That is why people are encouraged to use website and find necessary and helpful information there.

Do you have any questions? Please ask.