FAQ

If you’re a calendar year filer and your tax year ends on December 31, the due date for filing your federal individual income tax return is generally April 15 of each year. If you use a fiscal year (tax year ending on the last day of any month other than December), your return is due on or before the 15th day of the fourth month after the close of your fiscal year. If your due date falls on a Saturday, Sunday, or legal holiday, the due date is moved to the next business day.

For the 2023 tax return, the due date is April 15, 2024.

To claim your child as your dependent, your child must meet either the qualifying child test or the qualifying relative test:

• To meet the qualifying child test, your child must be younger than you and either younger than 19 years old or be a “student” younger than 24 years old as of the end of the calendar year.
• There’s no age limit if your child is “permanently and totally disabled” or meets the qualifying relative test.

In addition to meeting the qualifying child or qualifying relative test, you can claim that person as a dependent only if these three tests are met:

1. Dependent taxpayer test
2. Citizen or resident test
3. Joint return test

Any economic impact payment you received is not taxable for federal income tax purposes but will reduce your recovery rebate credit.

The 2021 recovery rebate credit was paid out to eligible individuals as an advance payment called an economic impact payment.

The economic impact payment was based on your 2019 or 2020 tax year information. The 2021 recovery rebate credit is figured like the economic impact payment except that the credit eligibility and the credit amount are based on your 2021 tax year information.

If you didn’t receive the full amount of the 2021 recovery rebate credit as an economic impact payment, you may be able to claim the recovery rebate credit on your 2021 tax.

If you didn’t qualify for a third Economic Impact Payment or got less than the full amount, you may be eligible to claim the 2021 Recovery Rebate Credit based on your 2021 tax year information. If you’re eligible, you’ll need to file a 2021 tax return even if you don’t usually file a tax return. Your 2021 Recovery Rebate Credit will reduce any tax you owe for 2021 or be included in your tax refund.

Any third Economic Impact Payments you receive will reduce the amount of the credit you’re eligible for. You will need the total amount of your third Economic Impact payment and any plus-up payments to claim the 2021 Recovery Rebate Credit and avoid a processing delay that can slow a tax refund.

Advance Child Tax Credit payments are early payments from the IRS of 50 percent of the estimated amount of the Child Tax Credit that you may properly claim on your 2021 tax return during the 2022 tax filing season. If the IRS processed your 2020 tax return or 2019 tax return before the end of June, these monthly payments began in July and continued through December 2021, based on the information contained in that return.

If you are eligible for the Child Tax Credit, but did not receive advance Child Tax Credit payments, or If you preferred not to receive monthly advance Child Tax Credit payments because you would rather claim the full credit when you file your 2021 tax return, you can claim the full credit amount when you file your 2021 tax return during the 2022 tax filing season.

Beginning in 2021, the IRS Identity Protection PIN (IP PIN) Opt-In Pro-gram has been expanded to all taxpayers who can properly verify their identity. An IP PIN helps prevent your social security number from being used to file a fraudulent federal income tax return. You can use the Get An IP PIN tool on IRS.gov to request an IP PIN, file Form 15227 if your income is $72,000 or less, or make an appointment to visit a Taxpayer Assistance Center.

An Identity Protection PIN (IP PIN) is a six-digit number that prevents someone else from filing a tax return using your Social Security number or Individual Taxpayer Identification Number. The IP PIN is known only to you and the IRS. It helps us verify your identity when you file your electronic or paper tax return. Even though you may not have a filing requirement, an IP PIN still protects your account.

If you are one of the almost nine in 10 taxpayers who do not itemize, you may still qualify for a limited charitable tax dedication for cash contributions. Individuals who do not itemize can claim a deduction of up to $300 for cash contributions made to qualified charities, while married individuals filing joint returns can claim up to $600.

The Refund Transfer is an optional tax refund-related product offered by Pathward®, N.A., Member FDIC. The Refund Transfer is not a loan. E-filing of tax return is required to be eligible for the product. Subject to approval. Fees apply. See terms and conditions for details.

The FasterMoney® Discover® Prepaid Card is issued by Pathward®, N.A., Member FDIC, under a license from Discover Financial Services. Discover and the Discover acceptance mark are service marks used by Pathward N.A., Member FDIC, under license from Discover Financial Services.

Under Discover rules, your liability for unauthorized transactions that take place on the Discover Network is Zero dollars ($0) if you notify us within two (2) business days and you are not grossly negligent or fraudulent in the handling of your Card. This reduced liability does not apply if you have reported more than two unauthorized events in the last 12 months or if you derived benefit from the unauthorized use of the card. In addition, if you directly gave permission or implied that a person had the right to use your Card, that use is not unauthorized, even if the person exceeded the scope of your permission.

Walmart, 7-Eleven, K-Mart, Pay-O-Matic, Piggly Wiggly, Safeway, Speedway, Shaws, and other authorized independent businesses may have fees associated with their check cashing services. Pathward® is not responsible for any fees or terms and conditions of any check cashing facility. You may need to provide a form of ID. Please ask your check cashing representative about any fees or required documents before handing over your check.

The Refund Transfer is an optional tax refund-related product offered by Pathward®, N.A., Member FDIC. The Refund Transfer is not a loan. E-filing of tax return is required to be eligible for the product. Subject to approval. Fees apply. See terms and conditions for details.

The Refund Advance is an optional tax-refund related loan provided by Pathward®, N.A., Member FDIC (it is not the actual tax refund) at participating locations. Program availability and loan amounts may vary based on state and software provider. The amount of the loan and applicable interest will be deducted from tax refunds and reduce the amount that is paid directly to the taxpayer. Fees for other optional products or product features may apply. Tax returns may be filed electronically without applying for this loan. Loans offered in amounts of $250 (where available), $500, or $1,000, 25%, 50%, or 75% of your expected tax refund from $250 – $6,000. When calculating the amount of your loan, the amount of your “expected” tax refund may be affected by any refundable tax credits. Loans in the amounts of $250, $500, and $1,000 have an Annual Percentage Rate (APR) of 0.00%. Loans in the amounts of 25%, 50% or 75% of your expected tax refund have an APR of 36.0% with a minimum loan of $1,250. For example, $2,500 loan representing 50% of expected refund borrowed over 29 day term, total amount payable in a single payment is $2,571.51 including interest. Availability is subject to satisfaction of identity verification, eligibility criteria, and underwriting standards.

Certain Refund Advance Loans are available at no cost to tax preparers and taxpayers and Pre-Acknowledgement Loans (approved prior to IRS Acknowledgement) have a $75 Marketing Fee.

A marketing fee of $34.95 applies for every approved In-Season advance with a refund transfer or loans without a refund transfer. $0 marketing fees require use of the FasterMoney® Discover® Prepaid Card for disbursement.

The FasterMoney® Discover® Prepaid Card is issued by Pathward®, N.A., Member FDIC, under a license from Discover Financial Services. Discover and the Discover acceptance mark are service marks used by Pathward N.A., Member FDIC, under license from Discover Financial Services.

IRS issues ITINs to help individuals comply with the U.S. tax laws, and to provide a means to efficiently process and account for tax returns and payments for those not eligible for Social Security numbers. They are issued regardless of immigration status, because both resident and nonresident aliens may have a U.S. filing or reporting requirement under the Internal Revenue Code. ITINs do not serve any purpose other than federal tax reporting.

Hand Deliver If Possible

The most secure way of passing along documents is the most time-tested one: hand them directly to the recipient. You can put this tactic to work by personally delivering your tax documents to your accountant if at all possible. At the very least, hand them to an assistant or other office personnel. This eliminates any risk that they'll get lost or be hijacked by hackers and scammers.

Mailing Your Documents Is a Good Second Option

Mail delivery is pretty secure. It's probably your second best option if hand delivery is impossible or is an inconvenience.

Mailed documents are protected from casual "eavesdropping," thanks to the envelope. Opening someone else's mail is a crime in the U.S. That might not deter a determined criminal, but at least there are laws on the books to punish offenders.

Note

Documents can and sometimes do become lost or damaged in the mail, so it might be a good idea to send the backup copies you made rather than the originals. You might also think about using tracking services or requiring a signature upon delivery.

Faxing Your Documents Works for Simple Documents

Faxing documents can be a quick way to deliver them. It's relatively secure. The chances are good that your fax won't be intercepted by identity thieves as long as the accountant's phone line isn't tapped.

But there are a few downsides. The biggest risk is that you get the fax number wrong and send the data to a stranger. And faxed documents can sometimes be hard to read. The last thing a tax professional wants to do is sit there guessing if a number is a six or an eight (or take time to call you to find out).

Tip

Faxing works best if you just have to send a few pages. You may have to choose another method of delivery for longer documents, and for documents with copy on both sides of the page.

Use Encryption If You Must Use Email

Email is convenient and fast, but it also poses some security risks. Your emails and attachments are likely vulnerable unless you take precautions, such as the use of encrypted communication.

Luckily, there are many encrypted services that security-minded consumers can use. Chip Capelli, an accountant located in Provincetown, Massachusetts, mentions LeapFILE as one such method that's a game changer.

At the very least, place your tax documents inside an encrypted wrapper such as a password-protected DOC, PDF, or ZIP file. "Scan everything to a PDF, then password protect it," Capelli advises.

Never send information that you want to keep private as plain text in the body of your email message. This poses big risks if you were to send the message to the wrong address or if prying eyes manage to access your email account. Taking simple precautionary steps goes a long way in helping to protect your finances.

Use a Secure Portal

Another way to transmit documents is to use a secure portal to upload them. These servers offer a secure way for clients and their tax pros to view documents. They minimize risk.

Clients can create a passcode for each document within a secure portal. Only the person with the password can access the document.