Use the “Where’s My Refund?” Tool

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Taxpayers who have not yet received their income tax refunds can use “Where’s My Refund?” app to check the status. Find it on IRS.gov or the free IRS mobile app IRS2Go.

Here are five tips to know about “Where’s My Refund?”:

  1. Some Refunds Delayed. Beginning in 2017, certain taxpayers will get their refunds later. By law, the IRS cannot issue refunds before February 15 for any tax return claiming the Earned Income Tax Credit (EITC) or Additional Child Tax Credit (ACTC). The IRS must hold the entire refund, not just the part related to the EITC or ACTC. The IRS began releasing delayed 2016 EITC and ACTC refunds on February 15.

These refunds likely won’t arrive in bank accounts or on debit cards until the week of February 27. This is true as long as there are no processing issues with the tax return and the taxpayer chose direct deposit. Banking and financial systems need time to process deposits, which can take several days.

Where’s My Refund? will be updated on February 18 for the vast majority of early filers who claimed the Earned Income Tax Credit or Additional Child Tax Credit. Before February 18, some taxpayers may see a projected date or a message that indicates the IRS is processing their return. “Where’s My Refund?” remains the best way to check the status of a refund.

  1. Timely Access. Information will normally be available within 24 hours after the IRS receives the taxpayer’s e-filed return, or four weeks for a paper return. The system updates once every 24 hours, usually overnight, so there is no need to check more often.
  2. Gather Basic Information. Taxpayers should have their Social Security number, filing status and exact refund amount when using “Where’s My Refund?”. Those without Internet access can call 800-829-1954 anytime, to access the audio version of this tool.
  3. What to Expect. “Where’s My Refund?” includes a tracker that displays progress through three stages: Return Received, Refund Approved and Refund Sent. When the IRS processes a tax return and approves the refund, taxpayers can see their expected refund date. Even though the IRS issues most refunds in less than 21 days, tax returns may need further review and take longer.
  4. When to Call: Taxpayers should call the IRS to check on a refund only when:
  • it has been 21 days or more since they e-filed,
  • more than six weeks since the return was mailed,
  • the “Where’s My Refund?” tool directs them to contact IRS.

A tax transcript will not help taxpayers find out when they will get their refund. The IRS notes that the information on a transcript does not necessarily reflect the amount or timing of a refund. While taxpayers can use a transcript to validate past income and tax filing status for mortgage, student and small business loan applications, and to help with tax preparation they should use “Where’s My Refund?” to check the status of their refund.

For help with any income tax question and the new reporting rules, please call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

 

 

 

Things to Know About the Child Tax Credit

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The Child Tax Credit is a tax credit that may save taxpayers up to $1,000 for each eligible qualifying child. Taxpayers should make sure they qualify before they claim it. Here are five facts from the IRS on the Child Tax Credit:

  1. Qualifications. For the Child Tax Credit, a qualifying child must pass several tests:
  • Age. The child must have been under age 17 on Dec. 31, 2016.
  • Relationship. The child must be the taxpayer’s son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, half-brother or half-sister. The child may be a descendant of any of these individuals. A qualifying child could also include grandchildren, nieces or nephews. Taxpayers would always treat an adopted child as their own child. An adopted child includes a child lawfully placed with them for legal adoption.
  • Support. The child must have not provided more than half of their own support for the year.
  • Dependent. The child must be a dependent that a taxpayer claims on their federal tax return.
  • Joint return. The child cannot file a joint return for the year, unless the only reason they are filing is to claim a refund.
  • Citizenship. The child must be a U.S. citizen, a U.S. national or a U.S. resident alien.
  • Residence. In most cases, the child must have lived with the taxpayer for more than half of 2016.

The IRS Interactive Tax Assistant tool – Is My Child a Qualifying Child for the Child Tax Credit? – helps taxpayers determine if a child is a qualifying child for the Child Tax Credit.

  1. Limitations. The Child Tax Credit is subject to income limitations. The limits may reduce or eliminate a taxpayer’s credit depending on their filing status and income.
  2. Additional Child Tax Credit.  If a taxpayer qualifies and gets less than the full Child Tax Credit, they could receive a refund, even if they owe no tax, with the Additional Child Tax Credit.

Because of a new tax-law change, the IRS cannot issue refunds before Feb. 15 for tax returns that claim the Earned Income Tax Credit (EITC) or the ACTC. This applies to the entire refund, even the portion not associated with these credits. The IRS will begin to release EITC/ACTC refunds starting Feb. 15. However, the IRS expects these refunds to be available in bank accounts or debit cards at the earliest, during the week of Feb. 27. This will happen as long as there are no processing issues with the tax return and the taxpayer chose direct deposit. Read more about refund timing for early EITC/ACTC filers

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

IRS, Partners Urge Strong Passwords Help Protect Identities at Tax Time and Beyond

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The Internal Revenue Services and its partners, in the fight against identity theft, urge computer users to strengthen their passwords.

The password serves as the first line of defense to stop hackers and identity thieves from accessing your computer, mobile phone and other internet-accessible devices.

The IRS, state tax agencies and the tax professional industry are asking for your help in their effort to combat identity theft and fraudulent tax returns. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign that we call Taxes. Security. Together. We’ve also launched a series of security awareness tips that can help protect you from cybercriminals.

Here are a few basic steps to making passwords better and stronger:

  1. Add password protections to all devices. You should use a password to protect any device that gives you that opportunity. Not only your computer, tablet or mobile phone but also your wireless network. The password is your first line of defense.
  2. Change all factory password settings. If your device comes with factory password settings, for example the camera on your laptop, change it immediately.
  3. Longer is better. A password should be a minimum of eight digits but 10 to 12 is even better. It should be a combination of upper case and lower case letters, numbers and special characters. Do not use your name or birthdate.
  4. Do not repeat passwords. These days, people often have multiple, password-protected accounts. Do not use the same password repeatedly. Should a thief steal your password, he immediately will have access to other important accounts. Use different passwords, especially on important financial or tax accounts.
  5. Use two-factor authentication options. Many social media and financial institutions now give you the option of setting up a two-factor or two-step authentication process. A two-factor process involves a security code being sent to your registered mobile phone. This means if a thief manages to steal your user name and password, he will be blocked from accessing your accounts.
  6. Consider a password manager. One option for keeping track of your passwords on multiple accounts and getting help in creating strong passwords is to use a password manager. Some reputable companies offer free or low-cost versions of their products. See if a password manager might be right for you.

The IRS, state tax agencies and the tax industry joined as the Security Summit to enact a series of initiative to help protect you from tax-related identity theft in 2017. You can help by taking these basic steps.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

IRS, States, Industry Urge Taxpayers to Learn Signs of Identity Theft

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No matter how careful you are, identity thieves may be able to steal your personal information. If this happens, thieves try to turn that data quickly into cash by filing fraudulent tax returns.

The IRS, state tax agencies and the nation’s tax industry ask for your help in their effort to combat identity theft and fraudulent returns. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign called “Taxes. Security. Together.” We’ve also started a new series of security awareness tips that can help protect you from cybercriminals.

Here are a few signs that you may be a victim of tax-related identity theft:

  1. Your attempt to file your tax return electronically is rejected. You get a message saying a return with a duplicate Social Security number has been filed. First, check to make sure you did not transpose any numbers. Also, make sure one of your dependents, for example, your college-age child, did not file a tax return and claim themselves. If your information is accurate, and you still can’t successfully e-file because of a duplicate SSN, you may be a victim of identity theft. You should complete Form 14039, Identity Theft Affidavit. Attach it to the top of a paper tax return and mail to the IRS.
  2. You receive a letter from the IRS asking you to verify whether you sent a tax return bearing your name and SSN. The IRS holds suspicious tax returns and sends taxpayers letters to verify them. If you did not file the tax return, follow the instructions in the IRS letter immediately.
  3. You receive income information at tax time from an employer unknown to you. Employment-related identity theft involves the use of your SSN by someone, generally an undocumented worker, for employment purposes only.
  4. You receive a tax refund that you did not request. You may receive a paper refund check by mail that the thief intended to have sent elsewhere. If you receive a tax refund you did not request, return it to the IRS. Write “VOID” in the endorsement section, and include a note on why you are returning it. If it is a direct deposit refund that you did not request, contact your bank and ask them to return it to the IRS. Search IRS.gov for “Returning an Erroneous Refund” for more information.
  5. You receive a tax transcript by mail that you did not request. Identity thieves sometimes try to test the validity of the personal data they have chosen or they attempt to use your data to steal even more information. If you receive a tax transcript in the mail and you did not request it, be alert to the possibility of identity theft.
  6. You receive a reloadable, pre-paid debit card in the mail that you did not request. Identity thieves sometimes use your name and address to create an account for a reloadable prepaid debit card that they use for various schemes, including tax-related identity theft.

More information about tax-related identity theft can be found at Identity Protection: Prevention, Detection and Victim Assistance as well as the Taxpayer Guide to Identity Theft – all on IRS.gov.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

IRS Offers Tips on Validating Your Identity on Your Tax Return

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You should always keep a copy of your tax return. It is even more important for 2017, as the Internal Revenue Service moves to strengthen its e-signature validation process.

You must use your 2015 adjusted gross income or your 2015 self-select PIN to validate your identity on your federal electronic tax return this tax season. The electronic filing PIN is no longer available as an option.

The IRS, state tax agencies and the nation’s tax industry – partners in combating identity theft -ask for your help in their efforts. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign that we call “Taxes. Security. Together.” We’ve also launched a series of security awareness tips that can help protect you from cybercriminals.

As part of the IRS efforts to protect taxpayers, the e-signature validation change mostly affects those taxpayers who have used tax software in the past but are changing software brands in 2017. If that’s you, learn more about how to verify your identity and electronically sign your tax return at Validating Your Electronically Filed Tax Return.

Here are a few important steps:

  1. Find a copy of your 2015 tax return; the original return filed with the IRS.
  2. Create a five-digit Self-Select PIN to serve as your electronic signature. It can be any five numbers except all zeros.
  3. If married filing jointly, each taxpayer must create a self-select PIN.
  4. Provide your date of birth when prompted
  5. Provide either your 2015 adjusted gross income or your 2015 self-select PIN as the “shared secret” between you and the IRS. Either number, along with your date of birth, will serve to help validate your identity and verify your e-signature.
  6. On your 2015 tax return, your adjusted gross income (AGI) is on line 37 of the Form 1040; line 21 on the Form 1040-A or line 4 on the Form 1040-EZ.

This change will not affect most taxpayers. For example, if you are a returning customer, your software generally will automatically populate your date of birth and “shared secret” information. Those of you who switched software products generally must enter the “shared secret” information yourself.

If you don’t have a copy of your 2015 tax return, you may be able to get a copy from your prior-year software provider. If your software account is still active, you may be able to view your 2015 federal return to find your AGI. Or, you may ask your prior-year tax preparer for a copy if you had your return prepared professionally. If those are not options, you may use a Get Transcript self-help tool on IRS.gov to get a Tax Return Transcript showing your AGI.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

 

2017 Standard Mileage Rates for Business, Medical and Moving Announced

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WASHINGTON — The Internal Revenue Service today issued the 2017 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2017, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

  • 53.5 cents per mile for business miles driven, down from 54 cents for 2016
  • 17 cents per mile driven for medical or moving purposes, down from 19 cents for 2016
  • 14 cents per mile driven in service of charitable organizations

The business mileage rate decreased half a cent per mile and the medical and moving expense rates each dropped 2 cents per mile from 2016. The charitable rate is set by statute and remains unchanged.

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 are described in Rev. Proc. 2010-51. Notice 2016-79, posted today on IRS.gov, 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.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

 

Avoid Identity Theft; Learn How to Recognize Phishing Scams

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Simply ask for it. That’s the easiest way for an identity thief to steal your personal information.

Each day, people fall victim to phishing scams through emails, texts or phone calls and mistakenly turn over important data. In turn, cybercriminals try to use that data to file fraudulent tax returns or commit other crimes.

The Internal Revenue Service, state tax agencies and the tax industry — all partners in the fight against identity theft — urge you to learn to recognize and avoid phishing scams.

We need your help in the fight against identity theft. That’s why, as part of the Security Summit effort, we launched a public awareness campaign that we call Taxes. Security. Together. We’ve launched a series of security awareness tips that can help protect you from cybercriminals.

It’s called “phishing” because thieves attempt to lure you into the scam mainly through impersonations. The scam may claim to be from a friend, a company with whom you do business, a prize award – anything to get you to open the email or text.

A good general rule: Don’t give out personal information based on an unsolicited email request.

Here are a few basic tips to recognize and avoid a phishing email:

  • It contains a link. Scammers often pose as the IRS, financial institutions, credit card companies or even tax companies or software providers. They may claim they need you to update your account or ask you to change a password. The email offers a link to a spoofing site that may look similar to the legitimate official website. Do not click on the link. If in doubt, go directly to the legitimate website and access your account.
  • It contains an attachment. Another option for scammers is to include an attachment to the email. This attachment may be infected with malware that can download malicious software onto your computer without your knowledge. If it’s spyware, it can track your keystrokes to obtain information about your passwords, Social Security number, credit cards or other sensitive data. Do not open attachments from sources unknown to you.
  • It’s from a government agency. Scammers attempt to frighten people into opening email links by posing as government agencies. Thieves often try to imitate the IRS and other government agencies.
  • It’s an “off” email from a friend. Scammers also hack email accounts and try to leverage the stolen email addresses. You may receive an email from a “friend” that just doesn’t seem right. It may be missing a subject for the subject line or contain odd requests or language. If it seems off, avoid it and do not click on any links.
  • It has a lookalike URL. The questionable email may try to trick you with the URL. For example, instead of www.irs.gov, it may be a false lookalike such as www.irs.gov.maliciousname.com. You can place your cursor over the text to view a pop-up of the real URL.
  • Use security features. Your browser and email provider generally will have anti-spam and phishing features. Make sure you use all of your security software features.

Opening a phishing email and clicking on the link or attachment is one of the most common ways thieves are able not just steal your identity or personal information but also to enter into computer networks and create other mischief.

Learning to recognize and avoid phishing emails – and sharing that knowledge with your family members – is critical to combating identity theft and data loss. Businesses should educate employees about the dangers.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

IRS, Partners Suggest Tips for Safe Holiday Online Shopping

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The holiday online shopping season is a prime time for cybercriminals and identity thieves to trick shoppers into giving up financial, identity or password information.

The Internal Revenue Service and its partners urge you to follow a few safe practices that will increase your security online and help protect you from identity theft.

The IRS, state tax agencies and the tax professional industry are asking for your help in their effort to combat identity theft and fraudulent tax returns. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign that we call Taxes. Security. Together. We’ve also launched a series of security awareness tips that can help protect you from cybercriminals.
The Monday after Thanksgiving Day is known as Cyber Monday – the online equivalent to Black Friday — as shoppers head to retailers’ websites.

Here are a few basic steps to make your shopping season safer:

  1. Look for the “s” in “https.” The “s” in the opening URL stands for security. Always look for “https” – example, https://www.irs.gov – before sharing any information about your identity or your credit card/bank information. The “https” means the site uses secured, encrypted technology.
  2. Don’t use a public Wi-Fi to shop online. Unsecured hotspots can be used by thieves to peek at your transactions. Do not make online purchases or financial transactions while connected to a public Wi-Fi.
  3. Avoid phishing emails. Your inbox will likely fill with all kinds of “special” offers that you never requested, from online companies unknown to you. Avoid clicking on any links within emails from unknown sources or downloading any attachments. Beware of emails asking you to update your accounts, for example from your credit card company, bank, tax software provider or internet provider.
  4. Skip online employment offers. Along with retail “special” offers in your inbox, the holiday season also brings special, unsolicited job offers – promising “mystery shopping” jobs or work-from-home employment for extra cash. These often are ruses to steal your identity. Think before providing your Social Security number, financial information or identity information to any online source.
  5. Shop with reputable online retailers. If a retailer is unknown to you, check them out a bit before providing any information. The Better Business Bureau is a good place to start. You also can do a general internet search for customer reviews of the company.
  6. Review financial statements frequently. Keep a close eye on your credit card and/or bank statements. Quickly alert your financial institution to any unauthorized charges or withdrawals.
    The IRS, state tax agencies and the tax industry joined together as the Security Summit to enact a series of initiative to help protect you from tax-related identity theft in 2017. And you can help by taking these basic steps.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

IRS, Partners Warn of Online Threats; Protect Personal Computers

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The Internal Revenue Service, states and the tax industry remind you that online threats and annoyances abound. There are viruses, worms, Trojans, bots, spyware and adware – all fall under the malicious programs (malware) umbrella.

How do you protect your computer from hackers and identity thieves? You need security software and to keep it turned on. You also need security on all of your digital devices, including laptops, tablets and mobile phones.

The IRS, state tax agencies and the tax professional industry are asking for your help in their effort to combat identity theft and fraudulent returns. Working in partnership with you, we can make a difference.

That’s why we launched a public awareness campaign that we call Taxes. Security. Together. We’ve also launched a series of security awareness tips that can help protect you from cybercriminals.

Tens of thousands of new malware programs launch each day, making the use of security software essential to safe internet use. These malware programs can disable your computer, install viruses that give cybercriminals control, steal your data, track your keystrokes to give criminals your passwords and many other malicious acts.

Here are a few basic steps to help protect your computer:

  1. Use pre-installed security software. Many computers come pre-installed with firewall and anti-virus protections. A good broad-based anti-malware program should be able to protect you from viruses, Trojans, spyware and adware.
  2. Turn on automatic updates. Set your security software to update automatically so it can be upgraded as threats emerge. Also, make sure your security software is on at all times.
  3. Investigate your security software options. Search out trusted sources to learn more about security software options. This will help you decide if you should invest in security software that gives you even stronger protections and options.
  4. Consider encryption software. If you retain important financial documents, such as prior-year tax returns, on your computer, consider investing in encryption software to prevent unauthorized access by hackers or identity thieves.
  5. Protect your children. If your children also use the same device, make sure it has parental control options to protect your children from malicious websites. Educate your children about the threats of opening suspicious web pages, emails or documents.
  6. Set password protections for all devices. Whether it’s your computer, tablet or mobile phone, always set a password requirement for accessing the device. If it is lost or stolen, your device is still protected from access.
  7. Protect your wireless network. Set password and encryption protections for your wireless network. If your home or business Wi-Fi is unsecured it also allows any computer within range to access your wireless and steal information from your computer.
  8. Never download “security” software from a pop-up ad. A pervasive ploy is a pop-up ad that indicates it has detected a virus on your computer. It urges you to download a security software package. Don’t fall for it. It most likely will install some type of malware. Reputable security software companies do not advertise in this manner.
  9. Avoid downloads from suspicious sources. Never open a PDF document or picture attached in an email from an unknown source. It may contain malware.

The IRS, state tax agencies and the tax industry joined as the Security Summit to enact a series of initiative to help protect you from tax-related identity theft in 2017. You can help by taking these basic steps.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,  Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600

 

Employers that hire Holiday Help: Understand the Health Care Law’s Rules Around Seasonal Workers

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As an employer, your size – for purposes of the Affordable Care Act – is determined by the number of your employees. If you hire seasonal or holiday workers, you should know how these employees are counted under the health care law.
Employer benefits, opportunities and requirements are dependent upon your organization’s size and the applicable rules. If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, you are an ALE for the current calendar year. However, there is an exception for seasonal workers.
If you have at least 50 full-time employees, including full-time equivalent employees, on average during the prior year, your organization is an ALE. Here’s the exception: If your workforce exceeds 50 full-time employees for 120 days or fewer during a calendar year, and the employees in excess of 50 during that period were seasonal workers, your organization is not considered an ALE. For this purpose, a seasonal worker is an employee who performs labor or services on a seasonal basis.
The terms seasonal worker and seasonal employee are both used in the employer shared responsibility provisions, but in two different contexts. Only the term seasonal worker is relevant for determining whether an employer is an applicable large employer subject to the employer shared responsibility provisions. For information on the difference between a seasonal worker and a seasonal employee under the employer shared responsibility provisions see our Questions and Answers page.

For help with any income tax question call one of our offices:

Plymouth 734.454.4100, Allen Park 313.388.7180,

Grayling 989.348.4055,   Livonia 734-462-6161,

Royal Oak 248.399.7331, or St. Clair Shores 313.371.6600