Tax Tips for Individuals

Tax Incentives for Higher Education

The tax code provides a variety of tax incentives for families who are paying higher education costs or are repaying student loans. You may claim an American Opportunity Credit or Lifetime Learning Credit for the qualified tuition and related expenses of the students in your family who are enrolled in eligible educational institutions.

Check Withholding to Avoid a Tax Surprise

Whether or not you owed taxes or received a refund last year, check your tax withholding to avoid having too little tax withheld and facing an unexpected tax bill or penalty at tax time next year.

Five Tips for Early Preparation

Earlier is better when it comes to working on your taxes. The IRS encourages everyone to get a head start on tax preparation. Not only do you avoid the last-minute rush, but early filers also get a faster refund.

Amended Returns

Oops! You’ve discovered an error after your tax return has been filed. What should you do? You may need to amend your return. 

Ayuda en Espanol

If you need federal tax information, the IRS provides free Spanish-language products and services. Pages on IRS.gov, tax topics, refund information, tax publications, and toll-free telephone assistance are all available in Spanish.

Filing an Extension

If you can’t meet the April 15 deadline to file your tax return, you can get an automatic six-month extension to file from the IRS. The extension will give you extra time to get the paperwork into the IRS, but it does not extend the time you must pay any tax due. You will owe interest on any amounts not paid by the April deadline, plus a late payment penalty if you have paid less than 90 percent of your total tax by that date.

Car Donations

The IRS reminds taxpayers that specific rules apply for taking a tax deduction for donating cars to charities.

Charitable Contributions

Your donations can add up to a nice tax deduction if you itemize deductions on IRS Form 1040, Schedule A.

Earned Income Tax Credit for Certain Workers

Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax, or even get a tax refund.

Refinancing Your Home

Taxpayers who refinanced their homes may be eligible to deduct some of the costs of their loans.

Selling Your Home

If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return.

Deductible Taxes

Did you know you can deduct certain taxes on your federal income tax return? The IRS says you can if you file Form 1040 and itemize deductions on Schedule A. Deductions decrease the amount of income subject to taxation. 

Gift Giving

If you gave gifts to more than one person valued at more than the gift tax annual exclusion amount, you must report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.

Marriage or Divorce

Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill or reduce the size of any refund.

Filing Deadline and Payment Options

If you’re trying to beat the tax deadline, there are several options for last-minute help. You can download copies from the IRS website if you need a form or publication. If you need more time to finish your return, you can get a six-month extension to file using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. The IRS has several payment options if you have trouble paying your tax bill.

Refund, Where’s My Refund?

Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from when the IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take to file a paper return, even faster when you choose direct deposit.

Tips and Taxes

Do you work at a hair salon, barber shop, casino, golf course, hotel, or restaurant, or drive a taxicab? The IRS advises that the tip income you receive as an employee from those services is taxable income.