Tax Changes You Need to Know About
How are we already into the second month of the year? Time is flying by, and that can only mean one thing…it’s officially tax season. I know, I know – I am screaming right along with you. Filing taxes can be daunting. Even if you are expecting a refund, it’s a major pain point. But, since it’s one of the two things in life that are guaranteed, let’s chat about some important details that make this tax year a little bit different.
Refund Checks
Despite the title of this section, refund checks are about to be a thing of the past. Notice I didn’t say “refunds” will be a thing of the past. That’s because the IRS is phasing out paper refund checks. In most cases, if you are due a refund (and lucky you if you are!), you will receive it via direct deposit or other digital means. If you don’t have a checking account on file with the IRS, you should consider adding one before filing to prevent any delay in receiving your funds. It should also go without saying that a direct deposit is more secure than relying on a paper check being sent in the mail, and it can be a quicker way to access your money.
If you are one of the four percent of American adults who are unbanked, or the 14% that are underbanked, you may not even have a checking account to direct those funds to when it comes time for your refund to be issued. If so, please take a look at our My Money+ Checking Account, which can help you save money on products and services that you probably already use and may be paying too much for. Save on things like cell phone protection, telehealth visits, roadside assistance, ID Theft protection, and more. Click here for details about how this account can help you and your family keep more of that sweet, sweet tax refund because no one likes to pay more when they don’t have to!
Tax Scams
If I’ve said it once, I’ve said it a thousand times, but scammers are gonna scam, and what better time than when millions of people are waiting on cash back from the government to do it? How can you protect yourself from becoming a victim? Here are some tips.
File early. Seriously. The longer you wait, the more time they have to infiltrate your filing. This applies to taxpayers who expect a refund and to those who will owe taxes.
Use a secure filing service. Whether you “know a guy” or use a tax software provider, do your due diligence. Always vet your tax prep!
Before entering any sensitive information, check your links. Confirm there are no misspelled words, the grammar on the page makes sense, and any communications you receive are from a valid sender.
IRS agents can certainly be in contact with you, but they should never be threatening or aggressive. For more ways to know if you are being contacted by the IRS, click here.
I owe taxes. What should I do?
Well, my friend. You have filed and received the bad news that you owe taxes. If you’re unsure how to manage that, let me help you out. Yes, the IRS does accept payment plans. They can be a great tool to avoid penalties. But I know there are some of you out there thinking, “I don’t want to have to worry about paying the IRS every month. I wish there was another way.” Lucky for you, because you can always opt to take out a short-term personal loan to pay your tax bill. Why is this a great option? You can pay the tax debt upfront, so you no longer have to deal with the IRS. Yes, you’ll still have a monthly repayment obligation, but if you are consolidating debt or have more affordable terms with us, it could make more sense to go that route. You can use this handy calculator to see what you might save going this route. If you just want to apply now and get a head start on filing, you can get started here.
I want to hear from you! Drop me a line or comment below.
Krista Kyte is a personal finance blogger and personal banker with over 23 years of experience in the financial industry. Krista is passionate about helping our members understand their financial situations. She writes tips that help consumers reach and maintain financial security and start living the life they’ve always wanted.