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TAX TOPICS

FILING YOUR RETURN

Tax Savvy Refunds Company offers two ways to file your tax return. Customers can choose IRS e-file or request that we mail a paper return to the IRS.

Click one of the following links for more information on filing your return: (Link all of these bullet Points to corresponding q/a below)

  • Filing a Paper Return

  • Electronic Filing

  • When to File

  • Filing Late

  • Amended Returns

  • Filing an Extension

  • Electronic Filing of Extensions

  • Installment Agreement

  • Record Keeping

  • Getting Copies of Past Tax Returns

  • Estimated Taxes

  • Estimated Tax Penalty

  • $3 Presidential Election Campaign

  • Change of Address

  • Deadline for Sending Forms W-2

Contact your local Tax Savvy Refunds Company office for more information or assistance.

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Filing a Paper Return

While the IRS no longer mails out tax packets, you can still file your tax return on paper through the mail. It is important to realize that the processing time and chances for an error increase when you mail your return because it must be entered by a data entry clerk into the IRS computer system before processing. You may be mailing your return to a different address than in the past because the IRS has changed the filing locations for several areas. To find the address of the appropriate Internal Revenue Service Center listed for your state check the Form 1040 Instructions or go to the IRS website. If you are a Tax Savvy Refunds Company customer, you'll find the filing address on the Customer Letter you received with your tax return.

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Electronic Filing

IRS e-file is the electronic transmission of your tax return to the IRS. Tax Savvy Refunds Company provides free electronic filing of federal and state returns for all customers who pay for tax preparation upfront. For a fee, we can also e-file a tax return that you prepared yourself, or that was not prepared by Tax Savvy Refunds Company. This is called a Transmit-Only Return. Fees for Transmit-Only are set locally by each local office. Contact your neighborhood office to learn more.

You must have a valid tax identification number, such as a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), for every person included on the return to qualify for electronic filing.

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When to File

April 17, 2019 is the due date for most taxpayers to file their 2018 income tax returns. If you file an extension by April 17, you must file your tax return no later than October 15, 2019.

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Paper Returns

Your paper return is filed on time if it is mailed in an envelope that is properly addressed and postmarked by the due date. If you send your return by registered mail, the date of the registration is the postmark date. The registration is evidence that the return was delivered. If you send a return by certified mail and have your receipt postmarked by a postal employee, the date on the receipt is the postmark date. The postmarked certified mail receipt is evidence that the return was delivered.

If you use a private delivery service designated by the IRS to send your return, the postmark date generally is the date the private delivery service records in its database or marks on the mailing label. The private delivery service can tell you how to obtain written proof of this date. IRS designated private delivery services are listed below:

  • Federal Express (FedEx): FedEx First Overnight, FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, FedEx International First, FedEx First Overnight, FedEx International Next Flight Out, and FedEx International Economy

  • United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, UPS Worldwide Express, and UPS Next Day Air Early AM

  • DHL: DHL Express 9:00, DHL Express 10:30, DHL Express 12:00, DHL Express Worldwide, DHL Express Envelope, DHL Import Express 10:30, DHL Import Express 12:00, DHL Import Express Worldwide

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E-Filed Returns

If you e-file, your return is considered filed on time if the authorized electronic return transmitter postmarks the transmission by the due date. The electronic postmark is a record of when the authorized electronic return transmitter received the transmission of your electronically filed return on its host system. The date and time in your time zone controls whether your electronically filed return is timely.

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Filing Late

If you do not file your return by the due date, you may be subject to a failure-to-file penalty and interest. To avoid penalties and interest, file for an extension by April 17, 2019.

If you were due a refund, but you did not file a return, you must file within three years from the date the return was originally due to obtain that refund.

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Amended Returns

If you filed a tax return and later realized that you have omitted income or overlooked some deductions, you can amend your return by filing Form 1040X, Amended U.S. Individual Income Tax Return. Generally, you must file your amended return within three years of the date you filed your original return or two years after paying taxes, whichever is later. You cannot change your filing status from Married Filing Jointly to Married Filing Separately after the due date of the original return.

Do not file Form 1040X to file an injured spouse claim. Instead mail Form 8379, Injured Spouse Claim and Allocation, by itself to the same Internal Revenue Service Center where you filed the joint return. Include copies of all Forms W-2, W-2G, and 1099-R that show income tax withheld.

Do not include any penalties or interest on Form 1040X. They will be adjusted accordingly.

File a separate Form 1040X for each year you are amending. When you amend your federal return, you may also need to amend your state return. It may take the IRS two to three months to process Form 1040X.

Amended returns cannot currently be e-filed.

For example, Henry filed his return in January, and paid the $129 balance due with that return. Two weeks later, Henry received an additional Form W-2. Because Henry had already filed his Form 1040, he must file Form 1040X to amend his return and report this additional income.

 
Filing an Extension

When you file an extension, you can postpone filing your return until October 15, 2019. However, if you do not pay any tax due by April 17, 2019, you will accrue penalty and interest charges. Complete Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, to file for a six-month extension. If you estimate that you have a balance due, include this payment with the form.

For example, James and Sally are married and file a joint return. Their home was damaged by a tornado and they have contacted their investment company to resend them Forms 1099 so they can file their tax return. It does not appear that they will have this information by the filing due date, so they decide to ask for an extension by filing Form 4868. James and Sally estimate that their total tax liability will be $1,843. Their Forms W-2 indicate that a total of $1,215 of federal income tax has been withheld. To avoid late payment penalty and interest, James and Sally should pay $628 with their Form 4868.

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E-filing Extensions

The IRS offers e-filing of extension applications. The IRS will process Form 4868 through the original due date of your tax return. By filing an extension, you postpone the filing date of your return until October 15, 2019; however, any tax due on the return will be subject to interest and penalties if not paid by the due date, or April 17, 2019.

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Installment Agreement

If you are not in bankruptcy and have a balance due, but cannot pay your full tax liability by April 17, you should consider the IRS installment plan. To request an installment agreement, complete Form 9465, Installment Agreement Request, and attach it to the front of your tax return or include it with an e-filed return. You can also request an Installment Agreement after you file your tax return by filing Form 9465 by itself to the address shown in the form instructions or by e-filing Form 9465 by itself. If the IRS approves the request, you will be charged a fee and interest on any unpaid balance. Although you generally may have up to 60 months to pay, you should make the payments large enough so that the balance due will be paid off by the due date of your next return. Interest will be assessed on the outstanding balance each month until the balance is paid in full. Before requesting an Installment Agreement, you should consider less costly alternatives, such as a bank loan.

To learn how Tax Savvy Refunds Company can help you pay your balance due, ask your tax preparer to tell you about the Flex-Pay® Program, which provides four balance-due payment options.

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Record Keeping

It is a good idea to keep your previous tax returns, as well as other important documents that have affected your income and deductions, for at least three years. If you need a copy of a prior-year return, you can obtain it for a fee from the IRS by filing Form 4506, Request for Copy of Tax Return. If you are a Jackson Hewitt customer, you can receive free copies of your prior-year tax returns from any Tax Savvy Refunds Company office nationwide.

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Getting Copies of Past Tax Returns

If you are buying a home, your mortgage banker may ask for copies of several prior years' tax returns. If you cannot locate them, file Form 4506 with the IRS immediately. For a fee, the IRS will mail you copies of your past returns. This can take up to 60 calendar days. If you are a Jackson Hewitt customer, you can receive free copies of your prior-year tax returns much quicker.

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Estimated Taxes

Taxpayers who expect to owe at least $1,000 in taxes after subtracting withholding and credits are usually required to pay estimated quarterly taxes. For estimated tax purposes, the year is divided into four payment periods. Generally, payments are due on April 15, June 15, September 15, and January 15 of the next year. If the due date falls on a weekend or a legal holiday, the due date will be the next business day.

 
Estimated Tax Penalty

If you did not pay enough tax either through withholding or by making estimated tax payments, you will have an underpayment of estimated tax and you may be subject to a penalty. Generally, there will be no penalty for underpayment unless the amount you owe is $1,000 or more. If the amount you owe is $1,000 or more, you can avoid a penalty by withholding or making estimated tax payments equal to at least 90% of your current year tax. Another way to avoid a penalty is by withholding or making estimated tax payments that are at least equal to the tax shown on your last year's tax return (110% of that amount if the adjusted gross income on last year's return is $150,000 or more, or, if Married Filing Separately, $75,000). If you filed a tax return last year and did not have a tax liability, you do not owe a penalty this year, no matter how much tax you owe.

 
$3 Presidential Election Campaign

There is a check box that asks you if you want $3 to go to the Presidential Election Campaign. If you mark the check box, it will not change the tax you pay or the refund you will receive. This fund helps pay the expenses of presidential election campaigns.

 
Change of Address

Are you planning a move before the end of the year? The IRS has an official change-of-address form, Form 8822, Change of Address. You should complete and mail this form to the IRS whenever your address changes. The IRS and the federal courts considers any mail sent to the last address on-file as timely delivered and all collection processes can commence within any timeframe quoted, even though you no longer live at that address.

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Deadline for Certain Forms To Be Sent To Taxpayers

Generally, the IRS requires employers to mail Forms W-2, Wage and Tax Statement , 1095-B, Health Coverage, and 1095-C, Employer-Provided Health Insurance Offer and Coverage, to their employees on or before January 31. In addition, if you purchased health insurance through a State Marketplace, they are required to issue your Form 1095-A, Health Insurance Marketplace Statement, on or before January 31. If you have not received your forms within a reasonable number of days after January 31 contact your employer or the applicable Marketplace. If a Form W-2 is not provided in a reasonable time, you may use payroll stubs to determine the income from that employer for income tax purposes. The information from the payroll stubs can be used to complete Form 4852, Substitute for Form W-2, Wage and Tax Statement, Etc.

Generally, the IRS requests you wait at least until February 15 before filing with a substitute Form W-2.

Tax Savvy Refunds Company may be able to download your W-2 information before you receive your Forms W-2 in the mail. Find out if you can take advantage of this free service to jump-start your tax return!

FILING STATUS:

Every year, some employees overpay their income taxes because they use the wrong filing status. Don't let this happen to you. Jackson Hewitt Tax Service is in the business of saving you money.

 

Your tax filing status is vital because it determines:

  • Whether you are required to file a return

  • The correct rate at which you should be taxed

  • The amount of your standard deduction

  • The tax credits and deductions to which you are entitled

The five IRS tax filing status categories are:

  • Single

  • Married Filing Jointly

  • Married Filing Separately

  • Head of Household

  • Qualifying Widow(er) with dependent child

When considering which tax filing status you can use, you should also consider:

  • Your marital status on December 31 determines your marital status for the entire year.

  • You cannot change your tax filing status from Married Filing Jointly to Married Filing Separately after the due date of the return.

  • If you and your spouse choose to file a joint return and there are state or federal taxes due, you will both be responsible for the debt.

  • A joint return requires both signatures. If your spouse is away from home, you should either sign the completed return and send it to your spouse to sign and mail, or obtain a power of attorney to allow you to sign for your spouse.

If more than one tax filing status applies to you, you should choose the one that gives you the lowest tax. Married Filing Jointly and Qualifying Widow(er) with Dependent Child usually give you the lowest tax and highest standard deduction, followed by Head of Household, Single, and Married Filing Separately, respectively.

 

Your marital status helps determine which tax filing status you qualify to use. You are considered unmarried for tax filing status purposes if you have never been married, or if your marriage has been annulled. You are also considered unmarried for the entire tax year if you are divorced or legally separated under a separate maintenance decree on the last day of the year.

 
Marriage Qualifying Tests

Generally, you are considered married for the entire tax year if you and your spouse meet any of the following tests on December 31 of the year:

  • You are legally married and living together. Legal marriage includes a marriage between two people of the same gender entered preformed and registered in a state, country or other jurisdiction where same gender marriage is legal.

  • You are married and not living together, but you are not divorced or legally separated under a separate maintenance decree.

  • You are living together in a common law marriage that is recognized in the state where you now live or in the state where the common law marriage began.

  • State law governs whether you are considered married, divorced, or legally separated under a separate maintenance decree.

  • You must end a marriage through divorce, annulment, or a legal separation to be no longer married.

  • State law where you reside governs your marital status for the state tax return.

If you do not live with your spouse during the last six months of the year and you meet certain other tests, you may be considered unmarried for the Head of Household filing status, even if you are not divorced or legally separated.

 

If your spouse died during the tax year, you are considered married for the entire year for filing status purposes.

 
Single

Use this tax filing status if you are unmarried or legally separated from your spouse (by divorce or separate maintenance) and do not qualify for any other filing status. Your tax filing status may also be Single if you were widowed in a previous year and did not get married again during the year. (See also Head of Household and Qualifying Widow(er) with Dependent Child, which carry lower tax rates and higher standard deductions.)

 
Married Filing Jointly

You and your spouse may choose to file a joint return, which combines your incomes and allowable expenses. The tax rate may be lower than the rates for other filing statuses and, if you do not itemize deductions, the standard deduction could be higher.

 

If you file a joint return, both you and your spouse may be held responsible, jointly and individually, for the tax and any interest or penalty due on that return. Each spouse may be held responsible for all the tax due even if only one spouse earned all the income. However, in some cases, one spouse may be relieved of joint liability for tax, interest, and penalties on a joint return if they can satisfy certain IRS requirements.

 

If you are divorced under a final decree by the last day of the year, you are considered unmarried for the whole year and you cannot choose Married Filing Jointly or Married Filing Separately as your tax filing status.

 
Married Filing Separately

The tax rate for this status is higher than the rates for other filing statuses. This status may benefit you if you choose to be liable only for your own tax or if both you and your spouse have high incomes or certain itemized deductions. If you use this status and either you or your spouse decide to itemize your individual deductions, you both must itemize your individual deductions. Certain credits such as the Earned Income Tax Credit and the Child and Dependent Care Credit are usually not allowed when you are Married Filing Separately.

Unless you are required to file separately, you should calculate your tax both ways (using Married Filing Jointly and using Married Filing Separately as your tax filing status). This ensures you choose the tax filing status that gives you and your spouse the lowest combined tax.

If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. You usually cannot take the personal exemption for your spouse and you can never claim your spouse as your dependent.

After the due date of the tax return, you usually cannot change the tax filing status on your return from Married Filing Jointly to Married Filing Separately. You can only make this change if you file the corrected returns before their original due date.

 
Head of Household

This status applies if you are unmarried on the last day of the year and if, for more than six months of the tax year, you paid more than half the cost of the upkeep of a home for yourself and a qualifying person. Other tests apply for a married individual to be "considered unmarried" for this status. Generally, your tax rate will be lower and your standard deduction higher than if you use the Single or Married Filing Separately filing statuses.

Use the Head of Household Qualifying Tests table and the Who Is a Qualifying Person for the Head of Household Filing Status table to help you determine whether you qualify for this filing status.

Head of Household Qualifying Tests

Not married

Married but considered unmarried

You are not married on the last day of the year.

You file a separate return.

You paid more than half the cost of keeping up a home for you and a qualifying person for the

tax year.

You paid more than half the cost of keeping up a home for you and a qualfying child for the tax year.

You have a qualifying person who lived with you in your home for more than half the year (except for temporary absences, such as education or vacation).Your dependent parent does not have to

live with you.

Your spouse did not live in your home at any time during the last six months of the year.Your spouse is considered to live in your home even if temporarily absent due to special circumstances.

 

Your home was the main home of your child, stepchild, or foster child for more than half the year.

 

You must be able to claim a child, stepchild, or foster child as a dependent. (You can still meet this test if you cannot claim the child as a dependent only because the noncustodial parent is allowed to claim the child.)

 
Who Is a Qualifying Person for the Head of Household Tax Filing Status?

If the person is your

And

Then, that person is

Parent, grandparent, brother, sister, stepbrother, stepsister, stepmother, stepfather, mother-in-law,

father-in-law, half brother, half sister, brother-in-law, sister-in-law, son-in-law,

or daughter-in-law

You can claim them as a dependent2

A qualifying person

 

You cannot claim them as a dependent

Not a qualifying person

 

 

 

Uncle, aunt, nephew, or niece

They are related to you and you can claim them as a dependent2, 3

A qualifying person

 

They are not related to you3

Not a qualifying person

 

You cannot claim them as a dependent

Not a qualifying person

 

 

 

Qualifying Child

They are single

A qualifying person4

 

They are married and you can claim them as a dependent2

A qualifying person

 

They are married and you cannot claim them as a dependent

Not a qualifying person

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A person cannot qualify more than one taxpayer to use the Head of Household tax filing status for the year.

If you can claim a person as a dependent only because of a multiple support agreement, that person cannot be a qualifying person.

You are related to an uncle or aunt if they are the brother or sister of yours or your spouse's mother or father. You are related by blood to a nephew or niece if they are the child of yours or your spouse's brother or sister.

This child is a qualifying person even if you cannot claim the child as a dependent.

This child is a qualifying person if you could claim the child as a dependent except that the child's other parent claims them under the special rules for a noncustodial parent.

For the tests a child must meet to be considered your qualifying child for the Head of Household filing status, please see Qualifying Child under the Dependents topic.

Note: Individuals that are using the "considered unmarried" rules to claim head of household must have a child, stepchild, or foster child for the relationship test.

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Qualifying Widow(er) with Dependent Child

If you are a widow(er) and you have a qualifying child, you may be able to use this filing status. You must meet all of the following tests:

  • You qualified to file a joint return with your spouse for the year your spouse died. It does not matter whether you actually filed a joint return.

  • You must have provided more than half of the cost of upkeep for you and your dependent's main home during the tax year.

  • You have a child, stepchild, adopted child, or foster child who you can claim as a dependent.

  • You must not have remarried before the end of the tax year.

  • Your spouse must have died in either of the two years preceding the current tax year

Note: If your spouse died during the current tax year, you may qualify to use the Married Filing Jointly status.

Contact your neighborhood Tax Savvy Refunds Company office for more information or assistance.

Use the Office Locator available on this Website or call 1-248-268-2149 Now!

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Dependents

Claiming someone as your dependent may significantly reduce the tax liability on your federal tax return. You may be entitled to a $4,000 exemption per dependent and a Child Tax Credit of up to $1,000 per qualifying child under age 17. Claiming someone as a dependent may also affect your filing status. You may qualify for the Head of Household filing status or the Qualifying Widow(er) filing status if you have a dependent. Additionally, if you pay educational expenses for this person, claiming the person as a dependent may allow you take advantage of education credits, the tuition and fees deduction, or the student loan interest deduction. A dependent does not have to be your child. Dependents can include others who are either related to you, such as a parent, or who have lived with you during the entire year as a member of your household.

To claim a dependent you must not be able to be claimed as a dependent by any other taxpayer. In addition, you generally cannot claim an exemption on a dependent who is married if they file a joint return. You cannot claim a person as a dependent unless that person is a U.S. citizen, a U.S. resident, U.S. national, or a resident of Canada or Mexico for some part of the year. To be a dependent, the person must be your qualifying child or qualifying relative.

 
Qualifying Child

A child is your qualifying child for dependency if all six of the following tests are met:

  • Relationship Test - Your qualifying child must be your:

    • Child (son, daughter, stepchild, adopted child, or eligible foster child) or descendant (for example, grandchild or great grandchild)

    • Sibling, half sibling, step-sibling, or descendant (for example, nephew or niece)

 

  • Age Test - Your qualifying child must be younger than you and under age 19, a full-time student under age 24, or any age if permanently and totally disabled.

  • Residency Test - Your qualifying child must have the same main home as you for more than half the year. Special rules may apply for kidnapped children and for temporary absences due to special circumstances such as illness, education, business, vacation, and military service.

  • Support Test - Your qualifying child must not provide more than half of their own support. For full-time students, amounts received for scholarships at an educational organization are not considered amounts paid for support.

If a child is the qualifying child for you and another person, you will need to decide who will claim that child as a dependent. If both of you claim the same child, the IRS will use the following tie-breaker rule to determine who can claim the child:

  • If only one of you is the child's parent, the parent can claim the child.

  • If both of you are the child's parents and you do not file a joint return together:

    • The parent with whom the child lived the longest period of time during the year can claim the child.

    • If the child lived with both parents the same amount of time, the parent with the highest adjusted gross income can claim the child.

 

  • If neither of you are the child's parent and the child is a qualifying child for both, the individual with the highest adjusted gross income may claim the child.

See the qualifying relative rules for a child who is not related to you and is not claimed by their parent.

 

If a person does not meet the tests for being a qualifying child, they may qualify as your dependent under the qualifying relative tests.

 
Qualifying Relative

Qualifying relatives can include children who do not meet the qualifying child Age Test, other relatives (for example, parents, grandparents, uncles, aunts, and in-laws), and unrelated members of the household. Dependents under the qualifying relative status do not qualify the taxpayer for the EIC or child tax credits.

A person is your qualifying relative if all of the following tests are met:

  • Not a Qualifying Child Test - Your qualifying relative must not be a qualifying child for any taxpayer.

  • Note: An exception to this rule is when the other taxpayer for whom the child is a qualifying child is not required to, and does not, file a tax return. For example, Amanda and her son, Travis, live with Jeremy all year. Amanda worked during the holiday and earned $3,800. Amanda does not file a tax return because she is not required to so Jeremy can claim Travis as a qualifying relative. Jeremy is unable to claim the Child Tax Credit, Additional Child Tax Credit, or the Earned Income Credit for Travis.

  • Member of Household or Relationship Test - Your qualifying relative must either live with you for the entire year as a member of your household (but the relationship cannot violate local law) or be related to you in one of the following ways:

    • Child (son, daughter, or adopted child), or descendant (for example, grandchild or great grandchild)

    • Stepchild

    • Sibling, half sibling, or step-sibling

    • Parent or direct ancestor (for example, grandparent or great grandparent)

    • Stepfather or stepmother

    • Uncle or aunt

    • Nephew or niece

    • Father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law. 
Special rules may apply for kidnapped children and for temporary absences due to special circumstances such as illness, education, business, vacation, and military service.

 

  • Gross Income Test - Your qualifying relative cannot have a gross income in excess of the dependent exemption amount for the year.

  • Support Test - Generally, you must provide more than half of your qualifying relative's total support. Special rules may apply when more than one person is providing support for an individual or for children of divorced or separated parents.

 
Your Tax Refund

When it comes to taxes, the first question we are often asked at Jackson Hewitt is, “Will I get a tax refund?” For the majority of our clients, that answer is YES! This good news leads almost immediately to the next question, “How quickly can I get my refund?”

For millions of Americans, your tax refund is the biggest paycheck you’ll receive all year! This means filing your taxes is the most important financial transaction. After 34 tax seasons, our Tax Preparers have some tips on what to do to get the maximum refund you deserve, and to get money early.

 
Tax Refund Timing

According to the IRS, most refunds are funded within 21 days of filing. This clock starts after the IRS begins processing tax returns for the year. However, this year new provisions included in the Protecting Americans from Tax Hikes Act (or PATH Act) impact certain tax return’s refund timing. For tax returns that contain the Earned Income Tax Credit (EITC) and/or the Additional Child Tax Credit (ACTC), those refunds will begin being funded the week of February 27, 2017. Also, the refund status for those clients may not be available on the IRS.gov website until Feb 15.

 
What is the PATH Act?

The PATH Act was passed into law in December of 2015 with a number of consumer benefits. It includes $620 billion in tax reductions for families and businesses, extending specific tax provisions, and includes elements designed to protect Americans against identity theft and tax fraud. This new law requires issuers of W2s and 1099-MISC and 1099-Rs to submit forms to the Social Security Administration by January 31 each year. It also gives the IRS more time to review returns with specific tax credits, like EITC and ACTC, and to compare W2 forms from employers against the individual tax return.

 
Refund Identity Theft

The PATH Act includes provisions to help combat identity theft and protect your tax refund. Last year, identity thieves affected 10 million taxpayers, stealing tax refund dollars from hardworking Americans. The IRS initiated a Security Summit last year to combat SIRF. Along with the new laws, the IRS will exercise new security measures to protect Americans.

 
Will Your Refund Be Delayed?

In the end, how quickly you receive your tax refund depends on when you file your taxes, how you choose to file, and, now, what credits and deductions you might claim. While refunds including EITC and CTC/ACTC will be funded no earlier than February 15, you will benefit by filing early. You are giving the IRS plenty of time to review your return, verify your EITC and CTC/ACTC eligibility, and W2 authenticity, which is required before your return is in processed. Additionally, filing with a tax professional that efiles, rather than submits a paper return by mail, will also save you time.

 
Tax Credits, Deductions, and Getting Your Biggest Refund

One of the first elements to getting your biggest refund is making sure you don’t miss any tax credits or deductions. If your circumstances have changed from last year, there may be a number of new credits or tax deductions available to you. Because you may not know that you’re eligible, a Tax Advisor can help you make sure you don’t leave any money on the table. Visit ourTax Refund Calculator to get your estimate.

 
Life Changes and Your Tax Refund

Tax credits and deductions are often connected to major life circumstances, so they may change from year to year based on your personal changes. For example, moving for a job, getting married, having a baby, or retiring could all have an impact on your taxes. Don’t miss out on some of these common overlooked areas.

  • Deductions or credits for Students: If you are a student, or have one on your tax return, you may qualify for credits or deductions for the tuition and fees paid or for a deduction of the student loan interest paid.

  • Single parents should look at their filing status. They may be missing out by not filing Head of Household.

  • Nearing 60? Look at your IRA deductions. There are increases to contributions creating tax savings and increasing your retirement funds and you don’t want to miss.

  • Caregivers, like many of us with aging parents, may be missing out on claiming a dependent exemption, dependent care credit, and medical deductions based on the cost of caring for our parents when they can’t care for themselves.

 
The $6,269 Check One in Five Taxpayers May Miss

The Earned Income Tax Credit (EITC / EIC) is a federal tax credit that has been available for the last 36 years and helps millions of families each year. It was created to help hard working Americans, and qualification is based on adjusted gross income. It is available to those earning less than $53,505.

Just because you didn’t qualify last year, doesn’t mean you won’t this year. Nearly 20% of taxpayers eligible to claim EITC last year did not claim it. That is 1 in 5, and it’s costing individual taxpayers thousands. Married couples and single people without children may qualify, and may not even know it. The maximum credit for 2016 is $6,269, and the average credit in 2015 was about $2,200. As your marital, parental, or income levels change, you should check or ask a Tax Pro if you qualify.

 
Qualifying for the Earned Income Tax Credit

How do you know if you qualify for EIC? There are a number of key requirements.

  1. You must have earned income from an employer or from being self-employed. If you are married and file a joint return, at least one spouse must have earned income.

Earned Income Credit Table: reference to determine eligibility for the EIC. Adjusted gross income must each be less than:

Filing Status

Qualifying children

 

0

1

2

3 or more

Single, Widowed,Head of Household

$14,880

$39,296

$44,648

$47,955

Married Filing Jointly

$20,430

$44,846

$50,198

$53,505

Maximum Tax Credit

$506

$3,373

$5,572

$6,269

  1. You must have been a U.S. citizen or resident alien for the entire tax year.

  2. You must have a valid social security number for yourself, your spouse if filing a joint return, and any qualifying children listed on schedule EITC

  3. Your filing status must be Single, Married Filing Jointly, Head of Household, or Qualifying Widower. You do not qualify for EITC if your filing status is Married Filing Separately.

  4. Most importantly, you must file a tax return, even if you're not required to

To find out if you qualify, just answer a few simple questions using the EITC Assistant on the IRS website. Last year, the average credit was worth over $2,200. (Link to IRS site calculator)

 
Members of the U.S. Armed Forces

If you were in a combat zone during the year, you may elect to include combat pay as earned income when calculating EITC. Nontaxable combat pay is not included in income when calculating your federal income tax, but you should calculate your return both ways to determine which way gives you the more advantageous result.

 
The Importance of Filing, Even If You Don’t Owe Any Taxes

Even if you do not owe any taxes or are not required to file a tax return, it may make sense to see a tax pro. EITC and ACTC are “refundable credits”, meaning you can get these credits back after you cover your taxes. If the credits are greater than your total taxes paid, you may receive a refund - even if you have little or no income tax withheld from your paycheck(s). However, you must file a tax return to receive this credit.

 
What are the Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)?

The Child Tax Credits (CTC/ACTC) are federal tax credits that can total as much as $2,000 per dependent child, depending on your income and the age of your children. This credit doesn’t affect the deductions for dependent children, and it is only allowed if you can claim a qualifying child as your dependent. This is a twofer, because you can get the dependent exemption amount of $4,050 AND the credit amount of $2,000 for each qualifying child.

 
Qualifying for the Additional Child Tax Credit

How do you know if you can claim this credit? First, your children must be claimed as a dependent. Then they must be under the age of 17 on December 31, 2018. Your child must be a U.S. citizen or resident, with a valid tax identification number. Finally, you must be eligible for the Child Tax Credit and unable to use all, or part of, the available amount.

The term “qualifying child” includes your child, stepchild, adopted child, grandchild or great-grandchild, as well as siblings, step-siblings and half-siblings that live with you. Foster children qualify if they were placed with you by a court or authorized agency. To claim the credit, children must live with you more than half the year and must not provide more than half of their own support.

There are income minimums and thresholds associated with this tax credit. For example, you must have $3,000 in taxable wages or self-employment income to qualify, and the credit is reduced, and eventually completely phased out, if your income exceeds the following:

  • $110,000 on a joint return

  • $75,000 for an unmarried individual

  • $55,000 for a married individual filing a separate return

 
Credits vs. Deductions

One important thing to remember: Tax credits directly reduce your taxes due. Deductions, on the other hand, reduce the amount of your income that is taxable. This can make a big difference on your bottom line. If you’ve been doing your own tax returns, and possibly missed this, there’s good news. You are allowed to go back three years to amend a tax return. Jackson Hewitt will review your returns and determine if you have any missing credits or deductions. This means that you could get additional money in refunds from previous years.

 
The Fastest Way to Get Your Tax Refund

There are a number of ways to get money earlier. Starting as early as possible will give you a better chance of being in the first round of returns processed by the IRS. Another way to get your refund earlier is to choose to load it onto a bank card provided through our bank. Your refund will be available up to two days earlier than standard direct deposit1. Those two days can mean the difference between getting your refund on a Friday and waiting until Tuesday the following week. It makes a big difference for most of our hard-working clients.

 
Starting your tax season early

If you rely on your tax refund to pay holiday bills, start your tax season early. Beginning in December you may apply for a refund cash advance. 

 
Holiday Tax Loans & The Holiday Shopping Season

Most taxpayers count on getting a refund as soon as possible, but sometimes, that is not soon enough. For qualifying customers, there are loans available based on estimated federal income tax refund. Those loans can make a huge difference between the holiday shopping in mid-December, and the estimated refund timing. You may consider applying for an Express Refund Advance, a no fee, 0% loan available to qualifying clients who prepare their taxes with Tax Savvy Refunds Company  2.

 
Express Refund Advance, a 0% APR Loan

By answering a few questions, taxpayers may prequalify for an Express Refund Advance, a no fee, 0% APR loan offered by Metabank® available to qualifying clients who prepare their taxes at Tax Savvy Refunds Company. Please check back frequently as this is coming soon!

 
Filing Requirements

Having your tax materials organized will help you gather what you need to file taxes and get your refund as early as possible. You can get started with your paystub or other income verification documents at Tax Savvy Refunds Company, and complete 99% of the tax interview. No W2? No Problem. With Tax Savvy Refunds Company, you can start in December with your paystub. In fact, you can receive an Instant Refund Advance between $200 - $400 based on your application and estimated tax refund. As soon as your W-2 comes in, you don’t even need to come back into the office. In many cases, we can download your W2. Your tax pro will ensure your W2 data matches the return, and will submit your return to the IRS.

 
Getting Your Taxes Done Early

At Tax Savvy Refunds Company, we know taxes are complicated. And this year, refunds for millions of Americans are going to be delayed. That’s why we’re working hard to help you get off to a good financial start. Talk to a Tax Pro. Make sure you get the maximum refund you deserve. Understand your options for filing taxes early and getting money as quickly as possible.

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