Income tax season is underway! Tuesday was the day the IRS started accepting returns. Rick Mehall, a certified public accountant and partner in the firm Guthoff, Mehall, Allen & Co. in Bloomington, says if you’re expecting a refund, it’s wise to file as soon as possible, though many taxpayers don’t yet have in hand all the documentation they need to file.
“Most people probably won’t be getting everything they need until late January or early February, just because 1099s from the banks and savings and loans and credit unions are not due out until Jan. 31,” he said.
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He also warns against tax-related scams: The IRS won’t call you on the phone, tell you you owe tax and accept a credit card over the phone. The IRS contacts taxpayers via old-fashioned paper mail.
This year will also be interesting for those who bought health insurance on the exchange: They estimated their income and got a tax credit to help pay for their insurance. Now they’ll have to reconcile that estimate with their actual income, and if their actual income was higher than the estimate, they’ll have to pay back some of the tax credit they got.