Dear Friend,

In the midst of tax season, I wanted to share some helpful resources and information that may make filing your return easier. Too often, folks end up missing out on tax credits or paying far too much in fees for professional tax preparers. A new tool available to you this season is IRS Direct File, an online portal that allows you to file your federal taxes directly with the IRS. Despite incorrect online accounts claiming IRS Direct File was paused, the service will remain available throughout the 2024 tax season. Read on for IRS Direct File eligibility criteria, information regarding free tax preparation services, and an overview of three common tax credits you may be able to claim. 

Additional tax preparation information can also be found on my website here. As always, if you have questions, please feel free to contact my office at (203) 333-6600 or send me an email. 

Sincerely, 

Jim

IRS Direct File:

Now available in Connecticut, IRS Direct File is a new, online tool that allows certain individuals and couples to submit their tax return for free directly to the IRS. Over 140,000 people used the tool in 2024, resulting in $5.6 million in savings. You may use this service if:

- You have lived in, and earned all of your income in, Connecticut for all of 2024.

- You have one of the following kinds of income: income from an employer (W-2), unemployment compensation (1099-G), Social Security benefits (SSA-1099), distributions for qualified medical expenses from an HSA (1099-SA), interest income (1099-INT), or Alaska Permanent Fund Dividend.

- You are a single filer who made $200,000 or less in total wages (threshold decreases to $168,600 or less in total wages if you had more than one employer).

- You are a married couple filing jointly with combined wages of $250,000 or less, or filing separately if your individual wages did not exceed $125,000. Additional restrictions apply for couples filing jointly depending on individual wage circumstances. 

To find out more about IRS Direct File, including additional eligibility requirements and what deductions and tax credits you can claim with the service, please visit the IRS website here.

Tax Assistance: 

If you would like help filing your tax returns, various organizations host tax clinics throughout the early spring that provide free, expert advice. Below you will find descriptions and online locator tools you may use to identify the tax assistance that best suits your needs.

- Volunteer Income Tax Assistance (VITA)/Tax Counseling for the Elderly (TCE): VITA and TCE clinics provide free, expert tax advice to eligible taxpayers. To find a VITA or TCE clinic, use this online locator tool. 

     o VITA: Individuals may attend a VITA clinic if: you’ve made roughly $67,000 or less in a year, have a disability, or are limited in your English-language ability. 

     o TCE: Individuals may attend a TCE clinic if they are 60 years of age or older; these clinics specialize in questions about pensions and retirement-related tax issues.

     o For more information, visit the IRS website here. 

-  IRS Taxpayer Assistance Centers: if you would prefer to work with an IRS representative in-person, you may visit a Taxpayer Assistance Center for help with certain tax services. 

     o You may find the location nearest to you using this online locator tool. It is recommended that you call prior to visiting the office. 

     o Please note: many of the services provided at Taxpayer Assistance Centers can be completed quickly online at IRS.gov. 

-  Additional tax clinics: in partnership with the IRS, the AARP Foundation hosts several tax-aide clinics throughout Southwestern Connecticut during tax season. More information on hours and service availability can be found on the AARP’s website.

Common Tax Credits: 

While you may be able to claim various tax credits, I wanted to highlight a few that are sometimes overlooked by Americans even though they are eligible. 

- Earned Income Tax Credit (EITC): You may claim the EITC if your income is low to moderate. The amount of your credit, potentially as high as $7,430, may change if you have children, dependents, are disabled, or meet other criteria. Visit these websites to access more information or verify your eligibility regarding the EITC. 

- Child Tax Credit (CTC): Families with children may be able to receive a tax credit for each child under the age of 17, even if they do not normally file a tax return. Tax credits range between $1,700-$2,000. Visit these websites to access more information or verify your eligibility regarding the CTC. 

- Child and Dependent Care Credit (CDCC): You may be eligible to receive a tax credit between $3,000-$6,000 if you individually or with your partner spent money this year on care for a child or dependent while you worked or looked for work. Visit these websites to access more information or verify your eligibility regarding the CDCC.