Some tax tips for 2012Congress has approved the American Taxpayer Relief Act of 2012. With the permanent patch of the AMT more than 60 million taxpayers can breathe a sigh of relief as they prepare their 2012 income tax returns.
Congress has approved the American Taxpayer Relief Act of 2012. With the permanent patch of the AMT more than 60 million taxpayers can breathe a sigh of relief as they prepare their 2012 income tax returns. The bill also retroactively extends many expired tax benefits for 2012, and many of the provisions of the Bush Tax Cuts that expired on January 1, 2013.
The IRS planned for these Extenders and the AMT Patch, and is ready to begin accepting and processing tax returns on January 22, 2013, as planned.
Local tax experts from Jackson Hewitt in the Minneapolis area are available for interviews throughout the tax season to discuss the benefits of filing early and what taxpayers can do to increase their tax refund amount or reduce what they owe, such as:
- Choose a local tax preparer that is knowledgeable and up-to-date on the American Taxpayer Relief Act of 2012 – and how it applies to your situation. Also, make sure they have a Preparer Tax Identification Number (PTIN), which the IRS requires for all paid tax preparers.
- Making note of common life changes – Major life changes in 2012? Rules that may not have applied to your 2011 income taxes, may now apply to your 2012 return. Many common events, like having a baby or buying a home, can trigger tax credits or deductions.
- E-filing your return – The benefits to e-filing a tax return, include faster processing time (you can receive your refund in 7 to 13 days), greater accuracy and confirmation the IRS has received your return.
- Avoiding tax return identity theft – Tax return identity theft is on the rise, with more than 1.2 million cases identified by the IRS in 2012. Filing early can get your refund money owed to you sooner, and it can also help safeguard you from identity theft.