5 Important Tax Tips from the IRS

The April 18th tax deadline is right around the corner and will be here before you know it. To follow are some some last-minute tips from the Internal Revenue Service for New York taxpayers:

1. The Importance of Filing

When a return is not filed, the law provides taxpayers with just a three-year window of opportunity for claiming a refund.  Half of those who could claim refunds would receive more than $706. IRS forms and publications are available on the IRS website.

Nearly 63 thousand New Yorkers who failed to file an income tax return for 2007 are missing out on approximately $78 million in unclaimed refunds.  To collect the money, they must file their 2007 returns with the IRS no later than April 18, 2011. 

2. Tax Assistance for Those With Special Needs

Hundreds of free IRS volunteer tax help sites are open to help prepare basic tax returns for older taxpayers, people with disabilities, non-English speaking individuals and other people who cannot afford professional assistance.

Tax volunteers can be found at convenient neighborhood sites – such as libraries, senior centers, or college campuses.  For the nearest volunteer site in New York call 1-800-906-9887.

3. Free Tax Filing

IRS Free File allows taxpayers earning $58,000 or less to e-file their tax returns for free through the IRS website.  E-file is fast, it’s free and it’s safe. Last year in New York, 6.2 million returns were e-filed. 

For New Yorkers who make more than $58,000 or who are comfortable preparing their own tax return, there is Free File Fillable Forms, also accessible through the website. There is no software assistance with Free File Fillable Forms. It does the basic math calculations for you.

4. Earned Income Tax Credit

Workers with low incomes should review their eligibility for the Earned Income Tax Credit to see if they qualify for tax relief. Last year in New York, almost 1.7 million filers collected nearly $3.6 billion in EITC payments.

The average EITC amount in New York was $2,136.  The IRS estimates that four out of five eligible taxpayers claimed the credit last year. This credit could be as much as $5,666.  Use IRS Free File, a volunteer tax site or the EITC Assistant on the IRS website to get help to claim EITC.

5. Getting an Extension

If you cannot file your return by the April 18 deadline, make sure to get a six-month automatic filing extension (until October 17) by completing and filing Form 4868, or by e-filing Form 4868 using a personal computer, via a tax professional or you can use either IRS Free File option to file an extension.  

Make sure to include a payment for the amount of estimated taxes owed, as it is a filing extension not an extension to pay.