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Yesterday, the Internal Revenue Service launched a new program that will enable online filers to receive their refunds in as little as ten days deposited directly to the taxpayer's bank account. Taxpayers can utilize tax preparers or file their returns themselves by using the IRS' online FreeFile program. FreeFile is available to individuals or families with income of $57,000 or less. Filing paper returns will produce a refund check in four to six weeks. Taxpayers will still have to wait to receive their annual mortgage interest statements, W-2's, and other tax reporting forms before filing.

Unfortunately, taxpayers seeking the expanded first, or second-time homeowner tax credit will still have to file for those credits conventionally as they require additional documentation. Under this program, first time homebuyers can claim a refundable tax credit of up to $8,000. Existing homeowners who have lived in their existing home for five years and purchase a new home can claim a credit of up to $6,500.

Even filers who owe additional taxes can file electronically as long as they make their payments by April 15th. These payments can be automatically debited from your bank account.


Posted by Mike Lesmeister, CRMS, CMPS on January 16th, 2010 4:34 PMPost a Comment (0)

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