Just go to the iTunes store (or Android Marketplace) to download the free IRS2Go app. It just takes a few seconds to download.

Of course if you took advantage of free income tax preparation and filing through your local VITA or TaxAide partner, you already know when to expect your refund. If you filed by Wednesday, then your direct deposit would be in your bank account the second Friday. A paper check would be mailed the third Friday and would likely arrive a few days later. This schedule is true for the entire tax season.

For more information, visit IRS.gov or search for the IRS2Go app in the iTunes store or Android Marketplace.

You will need to bring:

An original social security card for everyone that will be on the return (you, your spouse if you’re filing together, and any dependents).  If you do not have these, please first apply for new cards at the Social Security Administration.  If you are filing separately from your spouse, we will still need your spouse’s social security number.

Photo ID for you and your spouse (if filing together).

All W-2s, 1099s, and any other tax forms you have received (for interest paid or received, tuition paid, or cancelled debt).  If you receive social security, please bring the 1099-SSA even if that income is not taxable.

A voided check or bank letter with your routing and account numbers if you anticipate a refund and wish to have it direct deposited.

Child care provider’s name, Tax ID number, and the amount paid if you paid child care expenses that allowed you to work, go to school, or look for work.

A copy of last year’s tax return if available.

If you have all these things in hand, you’re ready to find a free tax preparation site!

The best way to figure out which filing status is the right one to file is to talk to your tax preparer.  The volunteer tax preparers at VITA and Tax Aide sites have received training in how to determine filing status, and when all else fails, have an IRS-created flowchart to determine what filing status fits you and your situation.  They can ask the right questions so that you are filing correctly to ensure that you receive the tax credits you’re due.

Remember, just like any advertising, what you see is not always what you get.  Some services may promise expedited refunds…but these “refunds” are actually loans.  High cost Tax Refund Anticipation Loans.  We weary of any tax preparer who seems more interested in selling you products or services than in filing your taxes quickly and accurately.

The IRS actually can direct deposit your refund in about 10 business days.  You don’t have to go to a paid preparer to do it, either…Wake County VITA and Tax Aide sites can e-file returns allowing you to get your refund back quickly without costing you any money, up front or out of your refund.

Another popular claim is that going with the advertised preparer will get you more money.  It’s important to remember that there IS an accurate amount you should get back.  Any refund larger will be the result of fraud (even if you don’t know that they are doing it, you will suffer the consequences!) or error.  Anything less will likely be the result of carelessness or poor training.

The best thing you can do to ensure you’re getting your accurate refund (or amount owed) is to get your taxes done by a preparer who has received adequate training.  All VITA and Tax Aide volunteers are trained and certified by the IRS to prepare and file the returns that they are preparing.

You can plug in your city or zip code here to find a convenient site to you.

Does this mean that taxes won’t be taken out of my unemployment check?

This depends on the rules decided by your local unemployment office and the preferences you give.  In most cases, you decide how much is taken out for both federal and local taxes.

While some opt to have no taxes withheld from their unemployment benefits because they need the money then, remember that if you receive more than $2,400 in unemployment benefits that amount over $2,400 is still subject to regular taxes.

Opting out of having taxes withheld from your benefits check may cause an unwelcome surprise come tax time next year.

What does this new law mean for my state taxes?

Tax law varies by state, so check your state’s revenue website for more information on any steps your state may have taken to make unemployment benefits tax free.

I was receiving unemployment earlier this year, but now I’m in a job.  Should I adjust my withholdings?

If you received more than $2,400 unemployment benefits but did not have any tax withheld, plan on oweing more taxes next spring than you are used to.  While each person’s tax situation is different, the best thing you can do for yourself is to plan ahead.

Also, if you are receiving employment income from more than one job (or you and your spouse both work), you may have complications from the Making Work Pay Credit.

Are the first $2,400 of my unemployment benefits tax free in 2010 too?

No.  All of your unemployment benefits will be fully taxable.

Those who qualify for the up to $8,000 credit can amend their 2008 taxes to include this credit, allowing them to receive their money much faster.  This type of tax amendment uses IRS Form 1040X like other amendments.

The IRS asks that you allow 8-12 weeks for your tax amendment to process, but if a family amends their return in the next couple of months, they will receive this credit before the next tax season.

When finding out more information about how to receive your tax credit, be careful to receive your information from reputable sources.

More information about the First-Time Homebuyer Credit and those who qualify for it can be found on IRS Form 5405.

The higher limit reflects an increase in limits for families to qualify for the Earned Income Tax Credit (EITC). While the limits for families with no children, 1 child or 2 children have increased, there is a new development for the upcoming tax season.

The IRS has established a new threshold by which families with 3 children may qualify for the EITC if their incomes are below $48,279 when married filing jointly. Single filers with three children have a limit of $43,279.

These changes open up free income tax preparation to a much larger percentage of working families. They should also provide a needed boost for families that have more than 2 children.

Tax Year 2009 Threshold Amounts:

• $13,440 ($18,440 if married filing jointly) if you do not have a qualifying child
• $35,463 ($40,463 if married filing jointly) if you have 1 qualifying child
• $40,295 ($45,295 married filing jointly) if you have 2 qualfying children
• $43,279 ($48,279 married filing jointly) if you have 3 or more qualifying children

Maximum EITC for Tax Year 2009:

• $5,657 with 3 or more qualifying children
• $5,028 with 2 qualifying children
• $3,043 with 1 qualifying child
• $457 with no qualifying children

These threshold amounts are based on tax year 2009 EITC AGI limits.

If you work 2 jobs, then both employers will be reducing your withholding by $400, even though you are eligible for only one $400 credit. What this means is that at the end of the year, you could find that you owe more, or that your refund is $400 less than you anticipated.

The Making Work Pay Tax Credit was designed to get the money into taxpayers’ hands during the tax year so that they could spend it and stimulate the economy. This is different from the stimulus payments previously received which arrived after the tax year.

For taxpayers with a single source of income, there will likely be nothing to worry about. However, those working multiple jobs, or those receiving a pension could be affected.

For more information about the potential withholding problems that taxpayers may experience, please see IRS Form 4766 which outlines the various situations where adverse tax consequences could occur.

Tax Relief

An expected $288 billion out of the total $787 billion package is reserved for tax relief. This is primarily geared for single taxpayers earning less than $75,000 a year, or $150,000 a year in the case of joint filers.

Will You Get a Stimulus Check?

You will not receive a stimulus check in 2009 (barring any additional legislation) like you did before. Instead, this will be a reduction in what would normally be deducted from your regular paycheck.

Single taxpayers (earning under $75,000) will receive a $400 credit that will be reflected when you file your taxes in early 2010. This will show up as extra money in each paycheck:

• Weekly: Extra $7.69
• Bi-weekly paycheck: Extra $15.38
• Semi-monthly: Extra $16.67
• Monthly: $33.33

Joint taxpayers will receive an $800 tax credit. This results in additional net pay of:

• Weekly: Extra $15.38
• Bi-weekly paycheck: Extra $30.76
• Semi-monthly: Extra $33.33
• Monthly: $66.67

When Will Paychecks Increase?

According to the Internal Revenue Service, the “Making Work Pay” tax credit will begin April 1, 2009 and run through December 31, 2010. Increases in net pay will actually be higher in 2009 since the amounts are prorated for a 12 month period.

These amounts reflect a reduction in what your employer withholds from your paycheck so your net pay will be larger. If you receive SSI payments, you can expect a payment of $250 in May (See SocialSecurityOnline for details). For more information on how the economic stimulus might affect you, visit Recovery.gov. This government site will answer some questions about the stimulus as well as to explain how this Act is expected to help revive the economy. In other words, it shows where the money goes.

There are some potential charges that you should be aware of:

• E-filing Fee: Many free tax preparation software programs charge a fee to electronically file your return. You can avoid the fee by printing out the return and mailing it in.
• State Preparation Fee: These software programs that offer free federal return preparation often charge around $20 for the state return. You can get around this by using your federal return to prepare your state return manually. State income tax returns tend to piggyback off of the federal return. Once your federal return is completed, many states’ tax forms are easy enough even for a novice to figure out.
• Add-Ons: Some software programs try to sell additional services to you. Some taxpayers buy into these add-ons through guilt of not paying for the primary service. Just make sure you only buy what you need.

Tax preparation software has improved in recent years and can provide you with an easier way of filing your own income tax returns. Even the free software programs usually include some sort of charge that most users would incur. Some programs cost as little as $15 – $20 and provide step-by-step assistance with filing.

The IRS does offer a Free File option if your adjusted gross income is below $56,000. For more information, see the IRS Free File page for partners that offer free federal filing. Just remember that state filing fees often apply.

If you would like to try to file your own return, these free software programs can be a good option. If you need additional help or have a question, the volunteer sites are still able to help you out. Simply contact one of the free tax prep sites in Wake County with your questions.

Related Information

Pub 4743 No Cost Filing Options