CORPUS CHRISTI, Texas — Filing a tax return can be an intimidating task, and many of those who have not yet done so are now rushing to beat the April 15 deadline.
Turns out there are still ways to save money, even for last-minute filers.
Of course, no one wants to find out that they owe money to the IRS, and this year, it is happening to people who did not expect it.
Stacy Trevino, the owner of Danny’s Income Tax Service, told 3NEWS what is usually behind the surprise.
“I am encouraging everyone I talk to take a look at your withholding if you are receiving a W-2,” Trevino said. “Because one of the tax laws a few years ago made it to where you receive more money throughout the year, which decreased your federal withholding on your W-2.”
Trevino said that when the federal tax withholding tables changed, many failed to check and, if need be, adjust their filing status. They are now paying the price.
“This affected tons of people who were used to getting larger refunds, and people who have never owed before are starting to owe,” Trevino said.
One advantage for those who discover they owe money and want to try to reduce that bill, is an immediate move taxpayers can make but often forget about.
“One of the great things about tax law is that if you find yourself owing this year and you’re holding off filing, consider opening up a traditional IRA account,” Trevino said. “You have until April 15 to contribute money into a traditional IRA and it will help you on your 2023 tax return.”
New for this year, a pilot program was launched by the IRS in a dozen states, including Texas, known as Direct File. It is intended for those with relatively simple returns and the United States Treasury Department says some 3.8 million Texans are eligible to use it. Just go online to IRS.gov to see if you qualify for this free resource.
Always remember that if you do owe money to the IRS, it is best not to ignore the bill, as penalties and interest will accrue. Trevino says there are options for paying the balance, including getting on a payment plan, something you will want to do as quickly as possible.
Expecting a refund? The best way to check the status of your money is the IRS’ Where’s My Refund tool, which provides three key pieces of information: when your return was received, when your refund was approved and when it was issued.
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