As February’s season of love draws to a close, there is another period now on the hearts and minds of Alabamians: tax season.
Whether the approaching deadline brings filing-anxiety or excitement for a refund, tax experts are reminding that all Alabamians should have their forms in order, and to make sure they are prepared when the time to file comes along.
Tax Day is Monday, April 15. If Alabamians can't get their tax information together by then, they are being advised now is the time to file an extension to automatically move the deadline to Oct.15. However, tax experts caution not to wait to pay the taxes owed, as the International Revenue Service (IRS) expects filers to make a good faith estimate to avoid penalties and interest.
Mark Baker works for Jackson Thornton Certified Public Accountants & Consultants. He is an expert on taxes and shared some tips for filers. He said he recommends filing electronically, if possible.
“Anything that you file via paper is going to take significantly longer than it would if you filed electronically. So, whenever possible, file electronically,” Baker said.
If filing traditionally with paper returns, Baker said there are some precautions filers should take into consideration.
“If you do have to file by paper, we recommend that you mail your return ‘certified return receipt’ and keep record of all the mailings of your returns, so that you have substantiation that you did file,” Baker explained.
When information is changing hands, Baker said it is especially important that the method used to share sensitive material is secure.
“Especially if it has individually identifiable information, like your social security number or your birthday, make sure that you're not just sending that unsecured to your tax preparer,” he cautioned. “Make sure that you're using a secure method. If you're not certain, ask your preparer.”
According to Baker, one of the most important things to keep in mind when filing taxes is security. He said making sure sensitive information is in the right hands is an essential part of staying protected from scams and keeping information secure.
Baker also said using widely-known tax services such as TurboTax and the IRS software is a good idea to keep information protected. FreeTaxUSA is also an option for filers.
Baker said, when filing via a hired professional, it is best to make sure this person is qualified and trustworthy.
“If you're if you're paying someone to do your taxes, make sure you know who that person is and get recommendations and referrals,” he said. “Make sure that you're using a qualified preparer to prepare it on your behalf.”
For first time filers, Baker said filing taxes isn’t as scary as it may seem and can be a beneficial skill to learn for the future.
“I know it's a shock when you have to start filing, if you've never had to do it yourself, but it's a good exercise,” he said. “It really informs you, and you learn more about how you're taxed, which is something we all need to understand.”
When it comes to expecting a refund, the IRS says it usually takes up to 21 days for an e-filed return to be processed. The federal agency says it will take about four weeks or more for amended returns and returns sent by mail.
As tax season looms on the horizon, the deadline may fill filers with fear, but this doesn’t have to be the case. Instead, Alabamians can take these tips to heart, gather the necessary information and conquer taxes!
More tips on filing taxes from the IRS can be found here.
