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TAX SEASON IS HERE. You’ve probably received your W-2 and, if they haven’t arrived already, your investment tax forms may be just days away. If you’re like me, your email inbox has been inundated with tax-filing services pitching their latest deal. I’m no expert on which tax-prep provider is best, but each year I check this page for reviews of the major sites.
I have two other tips that might save you a few bucks. First, see if your brokerage firm offers a discount on sites like TurboTax and TaxAct. Second, your credit card might have a cashback offer if you use one of those sites. It’s not much, but those small savings can help shave your tax-prep fee.
I’m curious to see how this tax season goes, given 2021’s frustrations—including refund delays—that resulted from IRS staff shortages and a slow postal service. Ally Bank Consumer Research performed a survey late last month that suggests filers have low expectations.
The survey says 51% of consumers expect another season of delays. To speed things along, the IRS recommends Americans submit returns electronically—but 81% of folks already do. Ally’s survey of more than 1,000 consumers also found that half of respondents expect a refund. Among that group, 63% planned to file in January or February.
The average refund was $2,827 last year, according to the National Taxpayer Advocate. Two-thirds of those Ally surveyed expect refunds of $3,000 or less. What will recipients do with their windfall? Among those expecting a refund, 55% plan to save it, 33% will use it to pay down debt and 30% will invest part or all of it. Of those planning to invest, 57% are looking to traditional financial markets, while 28% are considering rolling the dice with cryptocurrencies.
Ormode, I’d be interested in knowing what kind of tax return you have that can’t be filed electronically. Even amendments can now be filed electronically, but this is a recent change.
Gift tax returns forms 709 are still all paper.
Thank you.
The IRS should try to improve their system so that all taxpayers can submit electronically. I am still stuck sending in a paper form because it is required by IRS regulations, and the limitations of what can be submitted electronically.
They’re the ones asking for electronic submission – how about it?