I hope you began the official celebration this week. What, you didn’t know? As of Monday, the IRS
has officially started tax season. Granted, this is something I write about a
lot, and with Congress passing tax reform at the end of the last year, it may
seem like we have been in tax season for months, but the actual acceptance of
returns only began this week.
Of course, this involves lots of numbers, and one big one is
that the IRS is expecting to get 155 million returns, with 70 percent of those
expected to result in refunds. And last year, the average refund was $2,895.
That’s a lot of money moving around, and as always, we are eager to help you
get as big a piece of that as possible.
And as I always preach, getting started early is one of the
best ways to make this happen. By this
point, you have probably received some tax forms in the mail, and most of what
you have not yet seen will arrive in the next week or so. Open those envelopes,
give a quick look to make sure that everything looks as it should, then keep
them all together.
At the same time, though, think of the other things that you
need to help maximize any refund. Do you claim a home office deduction and need
utility bills? Do you have some receipts for business meals that can be
deducted? Overall, it is a good strategy to remember that whatever documents
you used last year are worth gathering this year again. For most of us, after
all, our financial situations don’t change THAT much from year to year.
If your situation has changed significantly, though, you may
want to schedule an early appointment for your taxes. For sure, you will know
many of the forms and documents that you will need for a full return, but we
can discuss your new situation and find out if there are others that will help
your return look even better.
But even if things are going to almost exactly like they
were for you last year, wouldn’t you enjoy just getting it over with? As the
IRS said, most people are expecting refunds, after all, so why not let being a
little proactive get some extra money in your bank account sooner.
And those refunds can come pretty quickly, too. Around 90
percent of taxpayers now file electronically, which allows most people who
receive a refund to get it in less than three weeks. Though be warned that
those who claim the Earned Income Tax Credit and/or the Additional Child Tax
Credit are not expected to start receiving theirs until February 27. And yes, that can be a bit of a bummer for
those who file early with those credits, but it’s a measure the IRS has taken
to try to prevent fraud, and I suppose we have to be forgiving when it takes
such actions for such reasons.
But yes, we have arrived. So for those who are ready, stay
on top of it. I mean, we will remain eager to help you even as we approach the
April 17 deadline, but our calendar gets fuller by then, and your chances to
take advantage of every deduction for which you could be eligible could
decrease. Time is currently on our side, let’s use it.
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