February Tax Update

With us being three months out from April 18, what are things you should be considering? Notably, it’s important to get your taxes done as early as possible to avoid identity theft, but there are a number of other important deadlines and headlines that you should take into consideration going into this short, chilly month.

1. February 1st was the deadline for employers and payroll employees to send out W-2 forms. If you do not receive your W-2 during this upcoming week, contact your employer. If your employer is unresponsive, call the IRS at 800-829-1040 with your employer’s name, telephone number, address, and employer ID number, if you know it. As a last resort, you can file a Substitute W-2 Form 4852 using your final paystub from 2015.
2. There are an increasing number of tax scams related to health insurance. Some scammers are taking advantage of the new tax rules surrounding the Affordable Care Act. Those who are uninsured and do not qualify for an exemptions are required to pay a fee with their tax return. However, some tax preparers are telling individuals to pay the fee directly to them. Please remember that the fee should be paid directly to the IRS when filing your tax return or after receiving a letter from the IRS. You should never pay the penalties to an individual.
3. February 16 is the deadline to file a Form W-4 (Employee’s Withholding Allowance Certificate) to continue an exemption on income tax withholding. This is only applicable to those who claimed this exemption last year when filing the Form W-4 with your employer. If you do not file the form by the 16, your employers will start withholding income tax from your paystub beginning on February 17. You can find other important tax deadlines here.
4. The IRS issues 90 percent of refunds within 21 days of filing. With that in mind, February is a great month to file, not only because you decrease the chances of being a victim of identify theft, but also because you could use some of your refund to get your significant other a special gift for Valentine’s Day!

Please check back during the next couple of months to stay up-to-date on important tax-related news and deadlines.