PATH addressed many critical extenders, such as Section 179 expensing and the research tax credit. With those necessary provisions handled, the stakes this year are much lower. It’s unlikely that the House and Senate will take any action before they adjourn for several weeks leading up to the November elections. Continue reading…
The Internal Revenue Service today issued the 2016 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes. 2016 Standard Mileage Rates for Business Announced below.
Beginning on Jan. 1, 2016, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
- 54 cents per mile for business miles driven, down from 57.5 cents for 2015
- 19 cents per mile driven for medical or moving purposes, down from 23 cents for 2015
- 14 cents per mile driven in service of charitable organizations
The business mileage rate decreased 3.5 cents per mile and the medical, and moving expense rates decrease 4 cents per mile from the 2015 rates. The charitable rate is based on statute.
The standard mileage rate for business is based on an annual study of the fixed and variable costs of operating an automobile. The rate for medical and moving purposes is based on the variable costs.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
A taxpayer may not use the business standard mileage rate for a vehicle after using any depreciation method under the Modified Accelerated Cost Recovery System (MACRS) or after claiming a Section 179 deduction for that vehicle. In addition, the business standard mileage rate cannot be used for more than four vehicles used simultaneously.
These and other requirements for a taxpayer to use a standard mileage rate to calculate the amount of a deductible business, moving, medical or charitable expense are in Rev. Proc. 2010-51. Notice 2016-01 contains the standard mileage rates, the amount a taxpayer must use in calculating reductions to basis for depreciation taken under the business standard mileage rate, and the maximum standard automobile cost that a taxpayer may use in computing the allowance under a fixed and variable rate plan.
cessing 2014 individual tax returns is Jan. 23, 2015, a date slightly later than usual due to congress not passing tax related laws earlier in 2014.Taxpayers who want to take advantage of the Internal Revenue Service’s free tax preparation e-filing program won’t have to wait. The Free File program opens to taxpayers on Jan. 17, two weeks before the IRS starts processing 2013 tax returns.
The IRS will not start processing any tax returns until Jan. 31. The government shutdown in October 2013 slowed IRS updates of forms and tests of its computer systems, leading officials to push the official opening of this year’s filing season to the end of the month.
But that doesn’t mean taxpayers have to sit around. Free File companies will hold taxpayers’ completed tax returns and then submit them on Jan. 31.
The early opening of Free File is good news for millions of eligible taxpayers. They are among the group of electronic filers, which increases every year, primarily because they can get their refunds more quickly.
And for the 2014 filing season, a few more taxpayers should be able to use the Free File option. The income eligibility limit has been increased to $58,000. That’s $1,000 more than last year.
Free File 2014 basics
The Free File program is a partnership between the IRS and the Free File Alliance, a group of tax preparation software manufacturers. Fourteen companies are expected to participate in the program this filing season.
“All the (2014 filing season tax software companies) have done it before. We have experienced providers within the commercial world and the Free File world,” says Tim Hugo, executive director of the Clifton, Va.-based Free File Alliance.
Free File was created in 2003 as a way to get more people to e-file. Its target is taxpayers who might otherwise not e-file because they don’t want or can’t afford to pay the cost of the computer filing programs or professional tax help.
Who qualifies?
The key qualification for Free File services is income. This year, taxpayers with adjusted gross income of $58,000 or less, regardless of filing status, can use the online program.
Participating tax software companies can establish other eligibility requirements. Some may limit usage of their programs based on geographic location, military service or other criteria.
To determine which software best fits your filing needs, the Free File website includes an online search tool to help you select one of the participating Free File companies.
Free File contributions to e-filing
In 2013, almost 144 million tax returns were filed electronically, according to IRS data complete through May 2013. That represents a nearly 2% increase in e-filed returns over the previous year. The sector that showed the most growth last year, according to IRS statistics, was tax returns prepared and filed by taxpayers on their own.
Around 3 million of those self-prepared returns e-filed last year came through Free File, says Hugo. That number has held steady for the past few years.
Three million of those returns e-filed last year came through Free File, says Tim Hugo, executive director of the Clifton, Va.-based Free File Alliance.
“We would love to have more,” says Hugo, but he points to the program’s overall contribution to e-filing. Since its inception, says Hugo, Free File has accounted for the submission of more than 40 million federal returns.
“We get people in the door for e-filing, people who’ve never e-filed before,” says Hugo. “They may go to a commercial product later on, but they will continue to e-file. We are very pleased with that.”
Hugo says the program also has evolved to meet taxpayer needs. “We look at Free File as a three-legged stool,” he says. “There is the traditional Free File, fillable forms and VITA providing services to every income.”
Working with VITA
The filing needs of lower-income taxpayers are addressed through Free File’s continuing partnership with the federal Volunteer Income Tax Assistance program, popularly known as VITA.
VITA tax-filing clinics are set up each year in public places — from libraries to community centers to shopping malls. Its volunteers provide free filing assistance to low- and moderate-income taxpayers who might not be able to afford tax software or professional filing help. This filing season, the services of IRS-certified VITA volunteers are available to people who make $52,000 or less.
Hugo says Free File is again placing kiosks, similar to self-checkout stations in retail stores, at VITA sites nationwide.
“You can do your return there or partially do your return and, if you need help, ask a VITA volunteer,” says Hugo. “This helps some of those who are most in need of tax help.”
The IRS has an online search tool to help taxpayers locate a nearby VITA site. Taxpayers also can call (800) 906-9887 for VITA locations.
Free fillable forms remain
The IRS says that Free File is available to 70% of taxpayers. But if you are among the 30% making too much money to use the service, you still can file for free using the tax agency’s fillable federal return form option.
Here, online versions of the most commonly used IRS tax forms are available through the Free File page. You fill them out on your computer and then e-file the documents at no charge.
Just don’t mistake the forms for tax software.
The fillable forms offer only basic calculations of what’s entered on the form. And you must figure out what goes on the form without the online prompting found in software.
Also, the information is not automatically transferred to associated forms. That means you must, for example, manually enter your itemized deductions total from Schedule A to the appropriate line on Form 1040.
Still, taxpayers with relatively simple filing needs who don’t want to buy tax software might find fillable forms a welcome alternative.
Note, however, that you’ll have to wait a bit longer to use the free fillable forms option. They won’t be available until Jan. 31, the same day that the IRS opens its filing doors to all taxpayers.
This is a schedule for 2014 IRS Refund Cycle Chart. Direct Deposit and Check date’s below. Please see disclaimer. 2014 tax refund schedule is listed below for information purposes.
| IRS accepts your return (by 11:00 am) between…* | Projected Direct Deposit Sent* | Projected Paper Check Mailed* | ||||
| January 30 2014 | 2/5/2014 | 2/7/2014 | ||||
| February 01 | and | February 08 2014 | 2/12/2014 | 2/14/2014 | ||
| February 09 | and | February 15 2014 | 2/19/2014 | 2/21/2014 | ||
| February 16 | and | February 22 2014 | 2/26/2014 | 2/28/2014 |
||
| February 23 | and | March 01 2014 | 3/5/2014 | 3/7/2014 | ||
| March 02 | and | March 08 2014 | 3/12/2014 | 3/14/2014 | ||
| March 09 | and | March 15 2014 | 3/19/2014 | 3/21/2014 | ||
| March 16 | and | March 22 2014 | 3/26/2014 | 3/28/2014 | ||
| March 23 | and | March 29 2014 | 4/2/2014 | 4/4/2014 | ||
| March 30 | and | April 05 2014 | 4/9/2014 | 4/11/2014 | ||
| April 06 | and | April 12 2014 | 4/16/2014 | 4/18/2014 | ||
| April 13 | and | April 19 2014 | 4/23/2014 | 4/25/2014 | ||
| April 20 | and | April 26 2014 | 4/30/2014 | 5/2/2014 | ||
| April 27 | and | May 03 2014 | 5/7/2014 | 5/9/2014 | ||
| May 04 | and | May 10 2014 | 5/14/2014 | 5/16/2014 | ||
| May 11 | and | May 17 2014 | 5/21/2014 | 5/23/2014 | ||
| May 18 | and | May 24 2014 | 5/28/2014 | 5/30/2014 | ||
| May 25 | and | May 31 2014 | 6/4/2014 | 6/6/2014 | ||
| June 01 | and | June 07 2014 | 6/11/2014 | 6/13/2014 | ||
| June 08 | and | June 14 2014 | 6/18/2014 | 6/20/2014 | ||
| June 15 | and | June 21 2014 | 6/25/2014 | 6/27/2014 | ||
| June 22 | and | June 28 2014 | 7/2/2014 | 7/4/2014 | ||
| June 29 | and | July 05 2014 | 7/9/2014 | 7/11/2014 | ||
| July 06 | and | July 12 2014 | 7/16/2014 | 7/18/2014 | ||
| July 13 | and | July 19 2014 | 7/23/2014 | 7/25/2014 | ||
| July 20 | and | July 26 2014 | 7/30/2014 | 8/1/2014 | ||
| July 27 | and | August 02 2014 | 8/6/2014 | 8/8/2014 | ||
| August 03 | and | August 09 2014 | 8/13/2014 | 8/15/2014 | ||
| August 10 | and | August 16 2014 | 8/20/2014 | 8/22/2014 | ||
| August 17 | and | August 23 2014 | 8/27/2014 | 8/29/2014 | ||
| August 24 | and | August 30 2014 | 9/3/2014 | 9/5/2014 | ||
| August 31 | and | September 06 2014 | 9/10/2014 | 9/12/2014 | ||
| September 07 | and | September 13 2014 | 9/17/2014 | 9/19/2014 | ||
| September 14 | and | September 20 2014 | 9/24/2014 | 9/26/2014 | ||
| September 21 | and | September 27 2014 | 10/1/2014 | 10/3/2014 | ||
| September 28 | and | October 04 2014 | 10/8/2014 | 10/10/2014 | ||
| October 05 | and | October 11 2014 | 10/15/2014 | 10/17/2014 | ||
| October 12 | and | October 18 2014 | 10/22/2014 | 10/24/2014 | ||
| October 19 | and | October 25 2014 | 10/29/2014 | 10/31/2014 | ||
| October 26 | and | November 01 2014 | 11/5/2014 | 11/7/2014 | ||
| November 02 | and | November 08 2014 | 11/12/2014 | 11/14/2014 | ||
| November 09 | and | November 15 2014 | 11/19/2014 | 11/21/2014 | ||
| November 16 | and | November 22 2014 | 11/26/2014 | 11/28/2014 | ||
| November 23 | and | November 29 2014 | 12/3/2014 | 12/5/2014 | ||
| November 30 | and | December 06 2014 | 12/10/2014 | 12/12/2014 | ||
| December 07 | and | December 13 2014 | 12/17/2014 | 12/19/2014 | ||
| December 14 | and | December 20 2014 | 12/24/2014 | 12/26/2014 | ||
| December 21 | and | December 27 2014 | 12/31/2014 | 1/2/2015 | ||
*These are only estimates, the I.R.S. has refused to give exact dates to new audit process. There are no guarantees with the I.R.S this year, but one thing is for sure. The earlier you file, the earlier you will receive a return. Contact us today for more details and to schedule your early tax appointment.
2012 IRS income Tax Refund Schedule.
| irs refund schedule 2014 | |
| 2014 tax refund cycle chart | |
| tax chart for 2014 | |
| refund calendar |
The U.S. Internal Revenue Service delayed the start of the tax-filing season for one to two weeks, citing the recent 16-day federal government shutdown.
The IRS, which had been scheduled to open filing Jan. 21, 2014, will now begin accepting returns for tax year 2013 as early as Jan. 28. The agency will make a final decision on the date in December, according to a statement today.
“Readying our systems to handle the tax season is an intricate, detailed process, and we must take the time to get it right,” Danny Werfel, the acting IRS commissioner, said in the statement.
This is the second year in a row that the IRS has postponed the filing season. Returns for 2012 were accepted starting on Jan. 30 after Congress delayed setting some tax policies.
“Considering the IRS has dealt with much larger changes on far shorter notice over the past years without delay, its reasons are suspect,” Sarah Swinehart, a spokeswoman for the Republican-led House Ways and Means Committee, said in an e-mail.
The IRS furloughed more than 90 percent of its employees during the shutdown, which began Oct. 1 when Congress was unable to pass a spending bill and ended after midnight Oct. 17.
“This is yet another unfortunate effect of a shutdown that Republicans should have never caused,” Representative Sander Levin of Michigan, the top Democrat on the Ways and Means Committee, said in a statement. “This tax-filing delay just adds insult to injury for Americans hoping to get a jump-start on their tax refunds in January.”
The delay won’t alter the April 15 deadline for taxpayers to file their returns or seek extensions.
At the start of the filing season, the IRS largely issues refunds to taxpayers who file as soon as they can. This year, the IRS issued $135 billion in refunds from Jan. 30 to March 1. That’s more than was paid from March 2 to May 10, when the agency received 50 percent more returns.
Delaying refunds could have an additional consequence in 2014. The U.S. debt limit is suspended through Feb. 7, and changes in the government’s projected spending after that date will affect the timing of how long the Treasury Department’s extraordinary measures to prevent a default will last.
Because the government may issue more refunds after Feb. 7 than previously anticipated, a potential lapse in borrowing authority could come a few days sooner than projected, said Loren Adler, research director at the Committee for a Responsible Federal Budget in Washington.
The delayed start of tax-filing season probably will create a backlog of potential returns for the start date, rather than delaying all returns equally.
“Those are folks who are trying to do this as soon as their books are in order,” Adler said.
The Bipartisan Policy Center projects that the U.S. will run out of borrowing authority between the end of February and mid-March 2014.
Discuss this and more in the Income Tax Forums.
This is a schedule for 2014 IRS Refund Cycle Chart. Direct Deposit and Check date’s below. Please see disclaimer. 2014 tax refund schedule is listed below for information purposes. This is just for the first week. Find out when you’re state income tax refund will be in. Please consider donating $1 to $5 to us for help with cost of running the site. Thank you.
Please note that due to heavy volumes on the opening week of tax season, several direct deposits may be pushed to the second week of payouts. | IRS approves your return (by 11:00 am) between…* | Projected Direct Deposit Sent on or before* | Projected Paper Check Mailed* | ||||
| January 24 | and | January 31 2014 | 2/6/2014 & 2/10/2014 | 2/7/2014 Continue reading… | ||
If you’re getting an income tax refund, no need to panic. You don’t even need to file an extension.
2012 tax returns that are due a refund have until April 15, 2016 (October 15, 2016 with an extension) to be filed with the IRS before the statute of limitations on the refund runs out. If you don’t file by then, the U.S. Treasury simply keeps your “donation.”
However, if you owe additional tax, file your return as soon as you can, even if you can’t pay your tax bill right away.
The penalties for not filing are much higher than the penalties for not paying, and the longer you wait, the worse it gets. See the What are the penalties for filing late? section below.
Yes, you can e-file your 2012 tax return through October 15, 2013. After that, the IRS shuts down e-filing to get ready for the following tax year, and you will need to file a conventional paper return.
It all depends.
Example: Let’s say you didn’t file your return or extension by April 15, and you still owe the IRS an additional $1,000.
Best-case scenario: You file your return on April 29, 2 weeks late, and submit your payment for $1,000. You would owe an additional $50 for filing late ($1,000 x .05) plus another $5 for late payment ($1,000 x .005) for a total penalty of $55.
(Had you filed your extension by the deadline, your total penalty would only be $5. It pays to file an extension!)
Worst-case scenario: You file your 2012 return in April of 2018, 5 years late, and submit your payment for $1,000. You would owe an additional $250 for filing late ($1,000 x the maximum .25) plus another $250 for late payment ($1,000 x the maximum .25), for a total penalty of $500.
You’ll probably receive a letter from the IRS reminding you to file your tax return, particularly if W-2 or 1099 forms were reported to the IRS by your employers. For additional information, refer to the IRS article What Will Happen If You Don’t File Your Past Due Return or Contact The IRS.
If you are due a refund, you’ll forfeit your refund if you do not file by April 15, 2016 (or October 15 of 2016 if you filed an extension).
Self-Employed?
You must file returns reporting your self-employment income within three years of the original filing deadline in order to receive Social Security credits toward your retirement. Don’t lose your Social Security benefits by not filing!
you are out of the country on the April filing deadline, you are allowed two extra months (June 17, 2013) to file your return and pay the amount due, without needing to request an extension.
You’re considered out of the country if:
If you still need more time after the automatic June 17 deadline, you can request four additional months by filing an extension along with paying any taxes you owe.
Other Special Situations
All IRS Refund’s filed in 2014 should be paid out in order of the 2014 Tax Refund Cycle Chart.
| IRS accepts your return (by 11:00 am) between…* | Projected Direct Deposit Sent* | Projected Paper Check Mailed* | ||||
January 30, 2013 |
2/6/2013 |
2/8/2013 |
||||
January 31 |
and |
February 6, 2013 |
2/13/2013 |
2/15/2013 |
||
February 9 |
and |
February 13, 2013 |
2/20/2013 |
2/22/2013 |
||
February 16 |
and |
February 20, 2013 |
2/27/2013 |
3/1/2013 |
||
February 23 |
and |
February 27, 2013 |
3/6/2013 |
3/8/2013 |
||
March 1 |
and |
March 6, 2013 |
3/13/2013 |
3/15/2013 |
||
March 8 |
and |
March 13, 2013 |
3/20/2013 |
3/22/2013 |
||
March 15 |
and |
March 20, 2013 |
3/27/2013 |
3/29/2013 |
||
March 22 |
and |
March 27, 2013 |
4/3/2013 |
4/5/2013 |
||
March 29 |
and |
April 3, 2013 |
4/10/2013 |
4/12/2013 |
||
April 5 |
and |
April 10, 2013 |
4/17/2013 |
4/19/2013 |
||
April 12 |
and |
April 17, 2013 |
4/24/2013 |
4/26/2013 |
||
April 19 |
and |
April 24, 2013 |
5/1/2013 |
5/3/2013 |
||
April 26 |
and |
May 1, 2013 |
5/8/2013 |
5/10/2013 |
||
May 3 |
and |
May 8, 2013 |
5/15/2013 |
5/17/2013 |
||
May 10 |
and |
May 15, 2013 |
5/22/2013 |
5/24/2013 |
||
May 17 |
and |
May 22, 2013 |
5/29/2013 |
5/31/2013 |
||
May 24 |
and |
May 29, 2013 |
6/5/2013 |
6/7/2013 |
||
May 31 |
and |
June 5, 2013 |
6/12/2013 |
6/14/2013 Continue reading… |
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