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Questions for the Tax Lady: March 1st, 2010

Check out the following new Questions for the Tax Lady answers and feel free to ask me questions through one of the links below. You can send me an email, direct message or @ reply, and I will do my best to get an answer for you!

Question #1: If my college student wants to claim himself as a dependent when he files his return can I still claim his as a dependent on my return?

No. If you want to claim your son as a dependent and take an exemption for him on your return then he cannot claim a personal exemption for himself on his IRS tax return. Instead, he will need to check the box on his return indicating that someone else claimed him as a dependent.

Question #2: What should I do if I realize I made a mistake on my tax return that I have already e-filed?

If you make a mistake on your return then you will most likely need to file an amended return with the IRS. You should use IRS Form 1040X, and should expect 8 to 12 weeks for the IRS to process the amended return. For more information, check out this page on IRS.gov.

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IRS Claims E-Filing off to a Strong Start

The IRS announced that e-filing is off to a great start this tax season. So far, over 38 million returns have been electronically filed. This represents a 5 percent increase from the same period last year, with double-digit growth coming from taxpayers filing from their home computers. More than 12.3 million returns were filed from home computers, which is an increase of almost 14 percent from the same time last year.

“E-filing continues to be the preferred way to file your tax return. It is the fast, easy, safe and more accurate way to file your tax return,” claimed IRS Acting Commissioner Linda E. Stiff.

As for the total amount of all refunds, $106.7 billion has been issued so far in 2008 with the average refund amount of $2,708, up two percent from the same time last year. So far this year, the IRS has directly deposited 33 million refunds out of the total of 39 million refunds. The direct deposit refunds were valued at just over $96 billion with the average amount of a direct deposit refund of $2,900.

IRS Reminds Farmers & Fishermen They May Have Until March to E-File

The IRS published a release reminding agricultural taxpayers, including farmers and fishermen that they may need to wait until March 3rd to e-file their tax return. According to the IRS, any taxpayer who files Form 1040 returns with Form 4136, Credit for Federal Tax Paid on Fuels, will have to wait.

"Normally, 1040 filers who are farmers or fishermen are not required to make an estimated tax payment if they file their return and pay all taxes due by March 1," claims the IRS. "But this year, because March 1 falls on a Saturday, the date extends to Monday, March 3. For eligible farmers and fishermen who attach Form 4136 to their Form 1040, the return will be considered timely filed with all tax paid if the return is e-filed and accepted on or before March 10 and all tax due is paid on or before March 10."

The IRS expects this delay to affect about 77,000 farmers and fishermen who electronically file Form 1040 with Form 4136 in the early weeks of the filing season. For more information, please visit www.IRS.gov.

IRS Announces Record High E-filers

According to an IRS new release, in 2007 57.4% of taxpayers filed their tax returns through e-file. This number was up about 9 percent from the 73 million returns filed for the same period last year. Overall in 2007, 139.3 million returns were filed – 79.98 million of which were filed electronically. "It was another record-breaking year for e-file," said IRS Acting Commissioner Linda E. Stiff. "Paper returns continue to drop year after year. E-file is the safe, accurate way for more and more taxpayers to quickly complete their taxes and get a refund faster." Additionally, more people this year chose to have their tax refunds directly deposited than ever before. So far this year the IRS has directly deposited 61.4 million refunds, up 8 percent from last year.

IRS Claims Electronic Excise Tax Filing Is Coming

The IRS announced they will be adding three excise tax forms to the list of federal tax returns and schedules that can be filed electronically later this year. "Electronic filing is a key component to modernizing our tax system," claims Acting IRS Commissioner Kevin M. Brown. "Expanding e-file opportunities to include excise tax returns will help improve service to taxpayers using these forms." The IRS expects to receive the first electronically-filed excise tax return this summer, when Form 2290, Heavy Highway Vehicle Use Tax Return, becomes the first available excise tax return that can be e-filed.

2007 Tax Season Sets IRS Records

The 2007 tax season set new records for the number of e-files, direct deposits, and hits to the IRS’s official website. According to recent IRS data, there were over 76 million income tax returns that were e-filed, with an additional surge of last minute filers choosing to e-file. "E-file and our other electronic services helped us deliver a strong filing season for the nation’s taxpayers," said IRS Acting Commissioner Kevin M. Brown. "Again this year, millions of additional taxpayers gave up paper tax returns to file electronically. E-file and IRS.gov were among several factors that helped us overcome one of the most challenging filing seasons ever for the IRS." The IRS claims their official site received over 140 million visitors, up nearly 13 million from last year. Source: IRS.gov.

More Last Minute Filers E-file

According to IRS data, as the tax deadline approaches more and more last minute filers are choosing to e-file. Historically more people e-file at the beginning of tax season, and typically those people are expecting a refund and want to get it fast. Late filers traditionally owe the government money and have more often used paper tax returns. But new statistics are showing that many taxpayers are choosing to pay electronically through credit card or direct debit. According to the IRS nearly 57 million returns have already been e-filed this year. Nearly one-third of those returns were e-filed during March alone, up more than 10 percent over last March. For more information check out the IRS’s website.

E-Filing Up 5 Percent Says IRS

According to the IRS’s official website the number of tax returns being filed electronically is up five percent from the same time period last year. According to IRS Commissioner Mark W. Everson, "taxpayers are filing electronically at a record pace this year, E-file reduces taxpayer errors and gets refunds back quickly." So far 73 percent of all returns have been e-filed this tax filing season, up from 70 percent for the same period last year. Also up is the number of people having their returns deposited directly into their bank accounts. 76 percent of all refunds issued this tax-filing season were directly deposited, up from 71 percent for the same period last year.

E-Filing And Direct Deposit Numbers Up This Year

According to IRS data from March 2, 2006, the number of people using the e-file system, as well as people direct depositing their refunds has risen yet again. Overall the number of e-files has increased by 4% when compared with last year’s data. Including an increase in 7% of e-filing from personal computers and a 2% increase in e-filing from tax preparers. Also more people are requesting their refunds be directly deposited into their bank accounts. So far 82% of all tax refunds have been direct deposited, up from 80% last year. Source: IRS.gov.