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2011 Tax Filing Changes
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Tax Documents
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Testimonial		 TAX ALERTS
  1. Tax Season opens January 13th 2012.
  2. The IRS begins accepting E-files January 17th, 2012.
  3. Tax filing deadline is April 17, 2012 instead of April 15th because April 15 is a Sunday and April 16 is the Emancipation Day holiday in Washington, DC.
  4. Refund Cycle English & Spanish
  5. Frequently Used Tax Terms
  6. Summary of tax changes and updates
  7. Deadlines, Grace Periods and Extentions
  8. FAFSA TIP - Those who use TBB to file their tax returns can take advantage of TBB's auto-fill feature to automatically fill in the FAFSA form. Clients who already filed a tax return without TBB can still use TBB for FAFSA, but completing the FAFSA form with taxes filed through TBB makes the FAFSA experience even better. Learn More Bout FAFSA
  9. Estimated Tax Payments
  10. How to Detect and Report Tax-Related Scams
  11. Top 10 Things Regarding Identity Theft
  12. Post Tax Season Tax Filing
  13. Tax Credits Extend Beyond Refund
  14. Low Income Tax Clinics
Low Income Tax Clinics
The Low Income Taxpayer Clinic program provides partial funding and oversight for Low Income Taxpayer Clinics (LITCs). LITCs are independent from the IRS.

Some clinics serve individuals who need to resolve a tax problem and their income is below a certain level. These clinics provide professional representation before the IRS or in court on audits, appeals, tax collection disputes, and other issues for free or for a small fee.

Some clinics can provide information about taxpayer rights and responsibilities in many different languages for individuals who speak English as a second language.
See List of Clinics
Deadlines, Grace Periods and Extentions

Official 2011 Deadline
The last day to file both the federal and state tax return is Tuesday, April 17th. The traditional tax due date of April 15th is a Sunday and April 16th is the Emancipation Day in Washington, D.C., which is considered a holiday. Since no tax returns are due on weekends, and Monday is a holiday, Tuesday April 17th, is the big due date. Electronic filing: Submit returns by 11:59 pm local time.

Post April 17th Rejection Grace Period
Tax filers have until April 21st to re-file a rejected return. The original return must have been filed by April 17th.

6 Month Grace Period
Tax filers who do not owe federal taxes have until October 17th to e-file.

Tax Filing Extensions
A tax filing deadline extension changes the tax filing deadline from April 17th to October 16th.
IRS Form 4868 must be completed for the federal tax return deadline extension and most states will accept this form for an extension on state return deadlines as well.

Currently, The Benefit Bank does not support Form 4868, but it is easy to obtain Form 4868 through the IRS web site.

-What if money is owed and more time to file is needed?
Some form of estimated payment should accompany the file for deadline extension. The payment will be applied to the tax filer's account. If an overpayment is made, the excess will be returned by the IRS. Please be aware that an extension of time to file is not an extension of time to pay. The IRS will calculate interest on any past-due tax amounts and late-payment penalties will apply. TBB cannot assist with calculating interest and penalties. Is the ability to file back taxes impacted by the end of tax season? Back taxes are not impacted. Returns for back taxes must be printed and mailed. 2010 tax filing deadlines are extended in Presidentially Declared Disaster Areas.
The IRS has announced that there are refunds totaling more than $1.1 billion may be waiting for nearly 1.1 million people who did not file a federal income tax return for 2007. To collect the money, a return for 2007 must be filed with the IRS no later than Monday, April 18, 2011. The IRS estimates that half of these potential 2007 refunds are $640 or more.

The IRS reminds taxpayers seeking a 2007 refund that their checks will be held if they have not filed tax returns for 2008 and 2009.

In addition, the refund will be applied to any amounts still owed to the IRS, and may be used to offset unpaid child support or past due federal debts such as student loans.
Federal Estimated Tax Payments
The Federal Estimated Tax Payments program helps users estimate their federal income tax payments for the current year. The IRS requires tax filers who anticipate owing more than $1000 at the end of the year to submit estimated quarterly payments during the year. Such a large tax liability usually results from income that is subject to tax and from which tax is not deducted regularly throughout the year. Types of income that might result in a large tax bill include:
  • self-employment
  • dividends
  • retirement (including Social Security if the user does not request SSA withhold tax)
  • interest
  • wages that do not have enough tax withheld
The Benefit Bank will ask the necessary questions to estimate the tax filer’s estimated tax for each quarter in the calendar year. All supported forms and worksheets can be printed. Clients can send their payments by mail or submit electronic payments through the IRS website.
Email Reminders
Clients need to send in payment vouchers or pay online at most four times throughout the year. Payment due dates are hard to keep track of because quarters vary in length. We send clients email reminders a few days before their payments are due.
Documents Needed to File
Below is a list of documents you will need to bring to The Benefit Bank and information you will need to know to determine your 2012 estimated tax liability: Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN) Your 2011 tax return and your spouse’s 2011 tax return (if you were single in 2010 and plan on filing jointly for 2012)
    Documents showing income for 2012. Some examples are:
  • Statements from your financial institution showing interest and/or dividend income
  • Business records you have showing income received from your business
  • Pay stubs from your employers
  • Other documents showing any prizes, awards, hobby income, gambling winnings, etc.
Documents showing any expenses that you plan on claiming for a deduction or credit. Some examples of items that you can claim a deduction or credit for are:
  • Expenses related to your business
  • Educational expenses for classes taken in a college, university, or technical school
  • Medical expenses such as premiums paid for health insurance established under your business or out-of-pocket expenses for diagnosis, cure, mitigation, treatment, or prevention of disease, or treatment affecting any structure or function of the body
  • Child and dependent care expenses
  • IRAs
  • School supplies that you paid for as a teacher for your classroom