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1149 WORDS | 8.8 MINUTE READ
Hi John,
Tax season is here, and I’m writing to make sure you have all the resources you need. Whether you’re still working on filing your taxes or you've already filed them, read on for important information. Remember, the Internal Revenue Service (IRS) and the Minnesota Department of Revenue filing deadline is April 15, 2024. Last year, the average tax refund was more than $3,000, so don’t delay!
Six Steps for a Successful Filing Season
1. Collect all documents before preparing a tax return: In addition to W-2s, Form 1099s, and other income-related statements, make sure you have your advance Child Tax Credit Letter 6419 and Economic Impact Payment (stimulus check) Letter 6475 on hand when filing. If a return includes errors or is incomplete, it may require further review and slow your tax refund.
2. Use e-file and direct deposit: Once you’ve gathered everything you need to file an accurate return e-file software does the math for you and guides you through each section of your tax return using a question-and-answer format. The IRS anticipates most taxpayers who choose direct deposit will receive their refund within 21 days of filing electronically.
3. Use online resources before calling the IRS: Wait times on IRS assistance lines remain at record highs. To avoid lengthy delays, the IRS urges people to use IRS.gov to get answers to tax questions, check a refund status, or pay taxes. There’s no wait time or appointment needed — online tools and resources are available 24 hours a day.
4. Track Your Refund: You can track the status of your refund by using the Where’s My Refund? system. This tool allows you to learn which of the four stages your refund is in and if you need to take any action. When your return is finished, you will then see the date it was sent.
5. Claim tax credits under the Inflation Reduction Act: This major legislation will affect individuals, businesses, tax exempt and government entities. Here are some of the credits you may be eligible for:
- Clean Vehicle Tax Credits:
- Beginning January 1, 2023, if you buy a qualified new electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer you may be eligible for a clean vehicle tax credit of up to $7,500.
- Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit (also referred to as a previously owned clean vehicle tax credit). The credit equals 30% of the sale price up to a maximum credit of $4,000.
- Leasing an electric vehicle is an additional option consumers can use to take advantage of the Inflation Reduction Act benefits. Through the Commercial Clean Vehicle Tax Credit, businesses that lease electric vehicles (such as dealerships) are eligible for a clean vehicle tax credit of up to $7,500 for qualified vehicles with gross vehicle weight ratings of under 14,000 pounds.
- Beginning in 2024, taxpayers have the option to transfer this tax credit as a “point of sale rebate” by a dealership to directly lower the price of the vehicle by the credit amount at the time of purchase.
- Home Energy Tax Credits
- Energy Efficient Home Improvement: The Inflation Reduction Act significantly expands and extends the 25C tax credit, now known as the Energy Efficient Home Improvement Credit. Previously, this tax credit was limited to 10% of your project costs but is now increased to up to 30% and available on an annual basis. After January 1, 2023, qualified energy-efficient improvements to your home may qualify you for tax credits worth up to $3,200.
- Residential Clean Energy Credit: The Residential Clean Energy Credit equals 30% of the costs of new, qualified clean energy property for your home installed anytime from 2022 through 2032. The credit percentage rate phases down to 26 percent for property placed in service in 2033 and 22 percent for property placed in service in 2034.
- Click here for more information on the credits and deductions under the Inflation Reduction Act.
6. Fraud Prevention: The Minnesota Department of Revenue reviews and verifies information on all tax returns to make sure the right refund goes to the right person. Do not spend your refund until you get your check or see the money in your bank account. To learn more about identity theft, see the Identity Theft and Tax Refund Fraud page here.
Waiting on a Previous Return?
In order to validate and successfully file an electronic tax return to the IRS, taxpayers need their Adjusted Gross Income (AGI) from their most recent tax return. Taxpayers who are still waiting for their 2022 tax return to be processed should enter $0 (zero dollars) for last year’s AGI on their 2023 tax return. All other taxpayers should enter their prior year’s AGI from last year’s return.
Did you know that you still may be able to claim a refund from up to three years ago? If you weren’t required to file a return in a prior year, you may still be owed a refund. Many people lose out on refunds because they didn’t know they could claim them. If you or someone you know is in this situation, you may still be able to file and not incur a penalty. Click here to learn more.
Additional Assistance
Free resources are available to help taxpayers file: You may be able to file your taxes for free at www.irs.gov/freefile. The IRS Free File program offers online tax preparation, direct deposit of refunds, and electronic filing at no cost to taxpayers who had an adjusted gross income of $73,000 or less. Qualified taxpayers can also find free one-on-one tax preparation help around the nation through the Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs.
If you're having trouble filing this year, help is available: The IRS and Minnesota Department of Revenue are responsible for accepting and processing your tax returns. See contact information for each agency below:
- Contact the IRS:
- Contact Minnesota Department of Revenue
If you’re still not getting the answers you need, my team may be able to assist. If you are still having issues with the IRS after following the guidelines above, please call my Minnetonka office at (952) 656-5176.
Unfortunately, our office cannot assist with the MN Department of Revenue, because it is a state agency. To ensure you get the help you need, I recommend reaching out to your state representative, who you can find here.
Keep the faith and keep in touch,
Dean Phillips
Member of Congress
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