NBC 5 Responds

The new tax changes you should know about before filing your return

From new state tax credits, to free ways to file- there’s a lot to know about this tax season

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Tax season officially started Monday, and while there are still months to go before the April 15 filing deadline, experts say there are some things to watch for as you prepare. NBC 5 Responds’ PJ Randhawa reports.

Tax season officially started Monday, and while there are still months to go before the April 15 filing deadline, experts say there are some things to watch for as you prepare.

NBC 5 Responds spoke to experts about what’s new this tax season- and to get some reminders about how to avoid having your refund stolen.

From new state tax credits to free ways to file- there’s a lot to know about this tax season.

FEDERAL DEDUCTIONS INCREASE

“On the federal side ... the standard deduction is going to increase across the board for all filing status, which means that the IRS is going to tax you less on your income that you're earning,” said Susana Ramirez, with Ladder Up, an organization that offers free tax preparation services for thousands of low-income households in Illinois.

For single taxpayers, or married couples filing separately, the standard deduction is now  $14,600. For married couples filing jointly, it’s been boosted to $29,200. That’s an increase of $1,500 from 2023.

NEW ILLINOIS TAX CREDITS

Illinois taxpayers who qualify will also have access to two new state credits implemented this year.

Those who made under $66,819 dollars qualify for the earned income tax credit. And those who qualify for the Illinois earned income credit can also apply for the new state child tax credit, if they have a child under the age of 12.

“It's going to give you a little boost on your refund and if you have children and might boost it even more,” said Ramirez.

And remember that third round of economic impact payments from the pandemic? There is still time to claim that money, if you haven’t received it.

“So that third round of the $1,400 is actually going to be expiring soon. So a lot of people who didn't receive it during COVID or afterwards will need to file a tax return in order to claim that as a credit and receive it as a refund,” Ramirez said.  

SCAM WARNINGS

Now that you have an idea of what your refund may look like, it’s important to protect it. Steve Bernas with the Better Business Bureau warns taxpayers should be careful who they choose to do their taxes.

“Nobody can promise you could do better than somebody else. It's all done. It should be done the same way regardless of doing it. So somebody's promising more than others be very careful,” Bernas said.

Bernas also warned taxpayers to stay away from tax prep businesses that seem to appear overnight.

“All of a sudden the gas station turns into a tax place and they have a big Uncle Sam out front. You've got to do the research on those organizations and who they are and will they be around the day after taxes are due. A lot of times they're not. They close up and they're gone. So who's going to represent you if something's wrong with the filing as well?” Bernas said, adding that people should make sure the person who completes their tax forms also signs them and provides their contact information for any future follow up.

Both Bernas and Ramirez urged taxpayers to file their returns as quickly as possible.

“A lot of times people find out when they go do their own taxes and say somebody else filed in your name. It's part of the whole, you know, identity theft problem, the issue that's out there, still the fastest growing white collar crime out there,” said Bernas.

“Unfortunately, it is a very long process to try to resolve [fraudulent tax returns]. But it's always good to try to file early and making sure that your information is verified,” said Ramirez.

NEW, FREE IRS TAX FILING PROGRAM

Finally some good news: this year more than two million illinois taxpayers will be able to file their federal and state taxes for free. Illinois is now one of 25 states participating in the Direct File program, which allows most taxpayers to file both state and federal taxes directly with the IRS at no cost. 

To make sure no one else files your tax return- you can request a six digit pin number from the IRS. That will prevent someone else from using your social security number to file taxes.

Once you file your taxes, the IRS says, most refunds will be available within 21 days.

To check the status of your refund you will need the following personal information:

Once you have that information, you can start your verification request in the "Where's My Refund" tool here.

You can start checking the status of your refund within:

  • 24 hours after electronically filing a 2024 tax return
  • 3 or 4 days after electronically filing a 2023 return
  • 4 weeks after mailing the return
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