Jill On Money: Key Tax Season Changes and Free Preparation Resources

Major Tax Law Changes for Taxpayers

• 💡 The IRS is highlighting four new, temporary tax provisions that are income-tested and will be in place for four tax years.
• 💰 These include a bonus deduction for seniors (up to an additional $6,000), no tax on tips up to a certain level, no tax on overtime up to a certain level, and no tax on car loan interest.
• ⚠️ Taxpayers impacted by these changes should use the new IRS schedule 1A and review related instructions and limitations.

Increased Refunds and Faster Processing

• 📈 Refunds are expected to be larger this year, potentially averaging between $3,500 and $4,000, due to the new tax law provisions and a larger standard deduction.
• 💸 Many people likely overwithheld taxes because they were using the old rules, contributing to the expected increase in refunds.
• ⚡ The IRS recommends filing electronically with direct deposit for the quickest refund, typically within 21 days, assuming no issues with the return.

Free Tax Preparation Resources

• 🆓 If you made $89,000 or less last year, you are eligible for IRS Free File at IRS.gov/freefile.
• 🧑‍🤝‍🧑 The Volunteer Income Tax Assistance (VITA) plan offers free tax help to individuals earning $69,000 or less, those with disabilities, or limited English-speaking taxpayers.
• 👴 Tax Counseling for the Elderly (TCE) provides free tax help for individuals aged 60 and older, specializing in pension and retirement plan questions.
• Military members and veterans can utilize MIL Tax, which offers free federal return preparation and electronic filing, with no income limit, and may cover up to three state returns.