The Internal Revenue Service (IRS) has made the official announcement that the 2024 tax filing season is all set to commence on January 29, 2024. This news brings a mix of anticipation and preparation for taxpayers, and understanding the intricacies of this tax season is crucial. Let's delve into the key aspects and enhancements introduced by the IRS, making the tax-filing process more accessible and efficient.
A Closer Look at Tax Season Kick-off
Come January 29, the IRS will open its doors to both paper and electronic tax returns, signaling the beginning of what is anticipated to be a busy tax season. The agency estimates that it will process over 128.7 million individual tax returns by the looming deadline of April 15, 2024. However, it's essential to note that while many software companies and tax professionals may start accepting tax returns ahead of the official opening day, actual submissions to the IRS will only occur once their systems align with the IRS's operational timeline.
Tax Season Improvements Unveiled
IRS Commissioner Danny Werfel has expressed optimism about marked improvements in IRS operations during the upcoming filing season, attributing these positive changes to ongoing transformation efforts. The primary objective is to enhance the overall experience for taxpayers by streamlining the process of preparing and filing taxes. But what does this mean for taxpayers?
This year, taxpayers can expect a range of new and expanded tools and resources aimed at making the entire tax preparation journey more user-friendly. One significant improvement is the expansion of in-person services with the opening or reopening of Taxpayer Assistance Centers (TACs). This initiative is designed to meet taxpayers where they are, ensuring more accessible support. Additionally, the IRS is extending operating hours at numerous TACs nationwide. This is complemented by increased assistance on the toll-free helpline, with an expanded customer call-back feature to significantly reduce wait times.
Filing Deadline and Special Considerations
Traditionally, the tax season filing deadline is set for April 15, 2024. However, residents of Maine or Massachusetts have been granted a slight extension until April 17, 2024, due to the observance of the Patriot's Day and Emancipation Day holidays. Additionally, individuals residing in federally declared disaster areas may receive additional time to file.
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Navigating the IRS Free File Service
The IRS Free File service is expected to be available on IRS.gov starting January 12, allowing taxpayers with an Adjusted Gross Income of $79,000 or less in 2023 to kickstart their tax preparation process. An interesting feature of Free File is that participating software companies will accept completed tax returns ahead of the official tax season opening, holding them until the IRS systems are officially operational.
Come January 29, 2024, Free File Fillable forms will be accessible to taxpayers at any income level. These electronic forms offer a cost-effective solution, allowing individuals to fill out and e-file their taxes at no cost.
Introducing the Direct File Pilot Program
This tax season introduces a novel voluntary pilot program called Direct File. Expected to be widely available in mid-March to eligible taxpayers in specific states, including Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming, the Direct File pilot allows taxpayers to e-file their federal tax return directly with the IRS for free.
However, it's important to note that this pilot phase will cover only individual federal tax returns, excluding the preparation of state returns. Taxpayer eligibility for the Direct File pilot is limited to those with relatively simple returns, covering specific income types and essential tax credits.
Refund Anticipation and Where's My Refund Tool Enhancements
Reviewing trends from the previous tax season, the IRS issued approximately 85,935,000 tax refunds, with an average refund amounting to nearly $3,000. Looking ahead to this year, the IRS anticipates issuing over 90% of refunds in less than 21 days. However, the IRS advises taxpayers not to rely on specific dates for refund receipt, as certain returns may undergo additional review, leading to longer processing times.
Refunds linked to the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC) are subject to a legal requirement to be held until mid-February. The Where's My Refund? tool on IRS.gov will provide updated statuses by February 17 for most early EITC/ACTC filers. For taxpayers who opted for direct deposit, refunds are expected to be visible around February 27, 2024, assuming no other issues with their tax return.
In anticipation of a potentially high volume of inquiries, the IRS has enhanced the Where's My Refund? tool. These updates aim to provide more detailed status messages in plain language, reducing the need for taxpayers to make additional inquiries. Furthermore, the tool has been optimized to ensure seamless functionality on mobile devices.
Accessing Help and Staying Informed
As the tax season unfolds, taxpayers can access a plethora of online tools on IRS.gov, designed to provide information and assistance that is not only comprehensive but also easily accessible at any time. For ongoing updates throughout the season, individuals are encouraged to stay informed by checking with the Forbes tax team for the latest developments.
In essence, the IRS's initiatives for the 2024 tax filing season underscore a commitment to enhancing the taxpayer experience and leveraging technology for a smoother process. By staying informed and taking advantage of the available resources, taxpayers can navigate the complexities of tax season with confidence and efficiency.
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