If you need tax help, the IRS has many online tools. You can e-file your tax return, check your refund status or get your tax questions answered.  Best of all, you can use the tools on IRS.gov any time.  Wayne Lai, a WNDE tax manager, said, “The IRS provides an assortment of filing tools on the website.  They provide sources for taxpayers to prepare and file their federal income taxes for free, sources for low income taxpayers to get free tax help and sources for taxpayers to locate paid tax preparers with select credentials and qualifications.”
Here’s a list of popular online, self-help tools that millions have used for free:

• IRS Free File.  Use IRS Free File to prepare and e-file your federal tax return at no cost. Free File will do much of the work for you with brand-name tax software or Fillable Forms. The only way to use IRS Free File is through IRS.gov.
• Where’s My Refund?  Checking the status of your tax refundis easy with Where’s My Refund? You can also use this tool with the IRS2Go mobile app.  This tool is the most useful on the IRS website, believes Wayne.  He said, “This tool allows taxpayers to check the status of their tax returns so they can find out whether their federal tax returns have been processed, when their tax refunds were approved and when they expect to receive their refunds via check o r direct deposit.”

The IRS also rolled out an app called “IRS2Go,” he noted, in which taxpayers can check the status of their refunds on their phones.

• Direct Pay.  Use IRS Direct Pay to pay your taxes or pay your estimated tax directly from your checking or savings account. Direct Pay is safe, easy and free. This tool walks you through five simple steps to pay your tax in a single online session. You can also use Direct Pay with the IRS2Go mobile app.
• Online Payment Agreement.  If you can’t pay your taxes in full, apply for an Online Payment Agreement. The Direct Debit payment plan option is a lower-cost, hassle-free way to make monthly payments.
• Withholding Calculator.  Did you get a larger refund or owe more tax than you expected the last time you filed taxes? If so, you may want to change the amount of tax withheld from your paycheck. The Withholding Calculator tool can help you determine if you need to give your employer a new Form W-4, Employee’s Withholding Allowance Certificate and provide information that will help you fill out the form too. Give the new Form W-4 to your employer to make the change.  Wayne believes the withholding calculator is another handy tool.  To have this calculator be as accurate as it can be, he said, users need to be as accurate as they can be in providing income and deduction estimates.  The calculator will provide users with their anticipated income tax amounts and compare those with their current withholding arrangements, and make appropriate recommendations to have the withholdings more closely match the anticipated tax amounts.  He remarked, “This is a very useful tool for W-2 taxpayers to estimate their federal tax liabilities and determine if their withholding arrangements are appropriate.”
• Interactive Tax Assistant.  The ITA tool is a tax-law resource that takes you through a series of questions and provides you with responses to tax law questions. For instance, you can find out if you may need to make an individual shared responsibility payment or if you are eligible for an exemption, when you file your taxes. You can also use the tool to find out if you may be eligible for the premium tax credit.
• IRS Select Check.  If you want to deduct your gift to charity, donate to a qualified organization. Use the IRS Select Check tool to see if a charity is qualified.
• Tax Map.  The IRS Tax Map offers tax law information by subject. It integrates web links, tax forms, instructions and publications related to your topic into one search result.

Wayne concluded, “These online tools are extremely helpful for individuals who like to be somewhat hands-on with their own taxes.  However, one should still consult a tax professionals for the best result.”
IRS Tax Tips provide valuable information throughout the year. IRS.gov offers tax help and info on various topics including common tax scams, taxpayer rights and more.
IRS YouTube Videos:

• Welcome to Free File – English
• When Will I Get My Refund? – English | Spanish | ASL
• IRS2Go Mobile App – English | Spanish | ASL
• IRS Tax Payment Options – English | Spanish | ASL
• IRS Withholding Calculator – English | Spanish | ASL
• Interactive Tax Assistant – English | ASL

IRS Podcasts:

• When Will I Get My Refund – English | Spanish
• IRS2Go Mobile App – English | Spanish
• IRS Tax Payment Options – Spanish
• IRS Withholding Calculator – English | Spanish
• Interactive Tax assistant – English

Share this tip on social media — #IRStaxtip: Find Easy-to-Use Online Tools on IRS.gov. http://go.usa.gov/xT2d4 #IRS.

Your Medical Expenses May Save You Money at Tax Time, But a Few Key Rules Apply

Due to the 10% AGI threshold for taxpayers less than 65 years old, explained Krystle Dean, CPA, a senior tax manager for WNDE, clients often are not able to take the available tax deduction for medical expenses.  For a taxpayer 65 or older, the AGI threshold is reduced to 7.5% through 2016, she continued, “so it is more common to see those clients receiving a tax deduction for their medical expenses.”

Here are some Tax Tips to help you determine if you can deduct medical and dental expenses on your tax return:

• Itemize. You can only claim your medical expenses on your taxes that you paid for in 2016, if you itemize deductions on your federal tax return.
• Income. Include all qualified medical costs that you paid for during the year, however, you only realize a tax benefit when your total amount is more than 10 percent of your adjusted gross income.
• Temporary Threshold for Age 65.  If you or your spouse is age 65 or older, then it’s 7.5 percent of your adjusted gross income. This exception applies through Dec. 31, 2016.
• Qualifying Expenses.  You can include most medical and dental costs that you paid for yourself, your spouse and your dependents including:
  • The costs of diagnosing, treating, easing or preventing disease.
  • The costs you pay for prescription drugs and insulin.
  • The costs you pay for insurance premiums for policies that cover medical care qualify.
  • Some long-term care insurance costs.

Some common examples of expenses that taxpayers can include in their medical expenses but they may not be aware of, Krystle noted, are acupuncture, chiropractic care, inpatient rehabilitation facilities, long-term care premiums (limited depending on age) and certain weight loss programs.  Some cosmetic surgeries, related to accident, disease or congenital abnormality, also can be deductible.  Krystle continued, “If there are certain treatments that your doctor recommends, it may be something that is a tax deduction, so please consult your CPA accountant.”
Costs reimbursed by insurance or other sources normally do not qualify for a deduction. For more examples of costs, you can and can not deduct, see IRS Publication 502, Medical and Dental Expenses. You can get it on IRS.gov/forms anytime.

• Travel Costs Count.  You may be able to deduct travel costs related to medical care. This includes costs such as public transportation, ambulance service, tolls and parking fees. If you use your car, you can deduct either the actual costs or the  standard mileage rate for medical travel. The rate is 19 cents per mile for 2015.
• No Double Benefit.  You can’t claim a tax deduction for medical expenses paid with funds from your Health Savings Accounts or Flexible Spending Arrangements. Amounts paid with funds from those plans are usually tax-free.
• Use the Tool.  Use the Interactive Tax Assistant tool on IRS.gov to see if you can deduct your medical expenses. It can answer many of your questions on a wide range of tax topics including the health care law.

“Keep all records of income and deductions until the statute of limitations runs out,” Krystle said, “which is three years from the date taxpayers file their tax returns for federal and four years for California.”
Each and every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are your Taxpayer Bill of Rights. Explore your rights and our obligations to protect them on IRS.gov.
Have more questions or looking to offset some of your filed taxes with medical and dental deductions? Contact a WNDE tax accountant and who can better assist you in maximizing your tax services to get the most savings possible.

Additional IRS Resources:

• Schedule A (Form 1040), Itemized Deductions
• Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

IRS YouTube Video:

• Medical and Dental Expenses – English | Spanish | ASL

IRS Podcasts:

• Medical and Dental Expenses – English | Spanish

Taxpayers who still file paper returns may find now is the best time to switch to e-file. Last year over 85 percent of taxpayers filed their taxes electronically. There are really no good reasons to paper file, said WNDE Partner Candace Huie, unless a filer is specifically prohibited from E-filing.  E-file is the fastest and safest way to file.
Here are the top seven reasons a taxpayer should file electronically in 2017:

1. Accurate and Easy. IRS e-file is the best way to file an accurate tax return. The tax software helps taxpayers avoid mistakes by doing the math for them. It guides users through each section of a tax return. E-file is easier than doing taxes by hand and mailing paper tax forms.
2. Safe and Secure. IRS e-file meets strict security guidelines. It uses modern encryption technology to protect tax returns. The IRS continues to work with states and tax industry leaders to protect tax returns from refund fraud. This new effort has put more safeguards in place to make tax filing safer than ever before. The IRS has processed more than one billion e-filed returns safely and securely.  Candy said, “Tax software companies and the taxing authorities are on the cutting edge of security for the efiling process.  Taxpayers have a higher risk of exposure to identity theft when mailing their paper filed returns.”
3. Convenient and Often Free. Taxpayers can e-file for free through IRS Free File. Free File is only available on IRS.gov. Taxpayers may qualify to have their taxes e-filed for free through IRS volunteer programs. Volunteer Income Tax Assistance offers free tax preparation for those earning $54,000 or less. Tax Counseling for the Elderly generally helps people who are age 60 or older. Taxpayers can buy commercial tax software or ask their tax preparer to e-file their tax return. Most paid preparers have to file their clients’ returns electronically.
4. Faster Refunds. In most cases, e-file prevents mistakes and helps people get their refund faster. The quickest way to get a refund is to combine e-file with direct deposit into a bank account. The IRS issues more than nine out of 10 refunds in less than 21 days – however, some returns need further review and take longer.  Candy noted, “E-filing gives you the ability to track the timeliness of filing your tax return and make getting your refunds much quicker.”
5. Prior-Year Tax Return. Taxpayers should keep a copy of their tax return. Beginning in 2017, taxpayers using a software product for the first time may need their Adjusted Gross Income (AGI) amount from their prior-year tax return to verify their identity. Taxpayers can learn more about how to verify their identity and electronically sign tax returns at Validating Your Electronically Filed Tax Return.
6. Health Care Coverage Reporting. IRS e-file can help with tax provisions of the health care law. The software will walk users through each line on the tax form that relate to the Affordable Care Act.
7. Payment Options. If taxpayers owe taxes, they can e-file early and set up an automatic payment on any day until the April 18 deadline. They can pay electronically from their bank account with IRS Direct Pay. Other payment options include electronic funds withdrawal and payment by debit or credit card. Visit IRS.gov/payments for details.

Candy concluded, “E-filing has made the overall tax filing process quicker, more efficient, and much more secure while nearly eliminating the room for “human error” by the taxing authorities when manually processing paper filed returns.”
IRS YouTube Videos:

• Welcome to Free File – English
• IRS Taxes: Three Easy Ways to Pay – English | Spanish | ASL

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