Site Updated Each Tax Year
If you got an extesnion to file your 2014 federal income tax return and expect to owe taxes, now's a good time to file. You still have time to avoid stiff penalties and interest. So get going today!
The way taxes are, you might as well marry for love.
~ Joe E. Lewis
If you get health insurance coverage through a Health Insurance Marketplace, be sure to add the Marketplace to your list of organizations to be notified of your new address.
If you are receiving advance payments of the premium tax credit, it is particularly important that you report changes in circumstances, including moving, to the Marketplace.
Reporting your move lets the Marketplace update the information used to determine your eligibility for a Marketplace plan, which may affect the appropriate amount of advance payments of the premium tax credit that the government sends to your health insurer on your behalf.
Reporting the changes will help you avoid having too much or not enough premium assistance paid to reduce your monthly health insurance premiums. Getting too much premium assistance means you may owe additional money or get a smaller refund when you file your taxes. On the other hand, getting too little could mean missing out on monthly premium assistance that you deserve.
Changes in circumstances that you should report to the Marketplace include:
Many of these changes in circumstances – including moving out of the area served by your current Marketplace plan – qualify you for a special enrollment period to change or get insurance through the Marketplace.
In most cases, if you qualify for the special enrollment period, you will have sixty days to enroll following the change in circumstances. You can find information about special enrollment periods at HealthCare.gov.
The Premium Tax Credit Change Estimator can help you estimate how your premium tax credit will change if you experience a change in circumstance during the year.
The the following table shows several ways to report an address change to the IRS:
|Tax return||Use your new address on your tax return|
|IRS Form||Use Form 8822, Change of Address or, Form 8822B, Change of Address or Responsible Party - Business|
|Written Statement||Send a signed written statement with your:
Mail your statement to the address where you filed your last return
|Oral Notification||You can tell the IRS in person or by telephone. They'll need to verify your identity and address. Have ready the information the IRS has on file for you, such as:
|Electronic Notification||You can only notify the IRS electronically if your refund check was returned to the IRS. Use Where's My Refund? to complete your change of address online. You will need your Social Security number, filing status and the amount of your refund.|
- If you filed a joint return, you should provide the same information and signatures for both spouses.
- If you filed a joint return and you and/or your spouse have since separated, you both should notify the IRS of your new addresses.
- Representatives filing a change of address for a taxpayer by form or written statement must attach a copy of their power of attorney or a Form 2848 (.pdf), Power of Attorney and Declaration of Representative. Unauthorized third parties cannot change a taxpayer's address.
- Any new address you provide to the U.S. Postal Service (USPS) may also update your address of record on file with the IRS based on what the USPS retains in its National Change of Address (NCOA) database.
However, even if you notify the USPS, you should still notify the IRS directly because not all post offices forward government checks.
If the change of address relates to an employment tax return, the IRS will issue notices of confirmation (Notices 148 A and 148 B) for the change to both the former and new address.
Several important tax changes went into affect in 2014. Depending on your income, age, marital status, or whether you operate a business, you could be affected.
Tips and Tid Bits
During fiscal year 2013, the IRS collected almost $2.9 trillion in federal revenue and processed 240 million returns of which 151 million were filed electronically. Out of the 146 million individual income tax returns filed, almost 83 percent were e-filed. More than 118 million individual income tax return filers received a tax refund, which totaled almost $312.8 billion. On average, the IRS spent 41 cents to collect $100 in tax revenue during fiscal year 2013.
The IRS examined just under one percent of all tax returns filed and about one percent of all individual income tax returns during fiscal year 2013. Of the 1.4 million individual tax returns examined, over 39,000 resulted in additional refunds.
Seven states do not have a personal income tax. They are: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. New Hampshire and Tennessee do not tax wages. They tax investment income from stocks and bonds.
The IRS uses occupational codes to measure typical amounts of travel by profession. A tax return showing 20 percent or more above the norm might get a second look? Here are a few other red flags that can trigger an IRS audit .
Silly as it may seem, if you robbed a bank dung 2013, you had taxable income. Intentionally not reporting ill-gotten gains is considered tax evasion. The IRS doesn't care how we "earn" our loot as long as they get their cut, from a tax compliance standpoint of course. So, if you're selling drugs or scamming investors and not reporting the income, some day you could find yourself in the same predicament that Al Capone found himself in! Here are some of the top tax myths.