New York, New Jersey, and Connecticut residents are preparing to file their taxes again. Here are the details for tracking your return, receiving your money quickly, and meeting deadlines.
This year, the IRS is starting a Direct File pilot program that lets eligible taxpayers file their taxes for free.
The public cannot access the pilot program, which is being implemented gradually. Expect wider availability by mid-March.
Direct File is different from the agency’s Free File initiative, which gives low- and middle-income earners free commercial software and fillable forms. Taxpayers must compute their tax liability despite the complicated forms.
As part of the agency’s effort to offer taxpayers an alternative to TurboTax, the Direct File pilot is being gradually introduced. Simple questions are explained in detail in this guide.
Use a tax refund calculator to estimate your refund before getting it.
TurboTax, H&R Block, and NerdWallet offer free calculators online.
The IRS Tax Withholding Estimator is another useful tool. It helps estimate federal income tax withholding. Do you work remotely? Expect a tax surprise this filing season!
FOX Business states that your income tax requirements may differ by area and by employment, potentially resulting in several state tax payments.
The research argues that people who live and work in two states may pay taxes in both. Taxpayers usually get credits to avoid double taxes.
Five states tax persons depending on their office location, regardless of whether they work there.
Connecticut and New York have a “convenience rule.” According to the research, employees in other states who work remotely for a corporation based in that state can be taxed on their income. Employees who live and work in income-tax states may be twice taxed.
Reciprocity Agreements Simplify State Taxes for Cross-Border Workers
FOX Business reports that numerous states have reciprocity agreements that allow neighboring jurisdictions to tax cross-border workers based on residency, simplifying tax filing and payment.
The Tax Foundation reports 30 agreements between 16 states and DC.
If you work in Pennsylvania but live in Maryland, you won’t have to pay Pennsylvania taxes or file a tax return. Taxes are solely due in Maryland and filed in your home state.
New Jersey and Pennsylvania have reciprocal agreements, but New York and Connecticut do not.
The IRS offers a free online tax refund tracking service.
It works like this. Track your refund at irs.gov/wheres-my-refund.
Your refund status will be available 24 hours after e-filing a current-year return, three to four days after a prior-year return, or four weeks after a paper return.
Daily, overnight reimbursement details are updated. Have your Social Security or ITIN, filing status, and return refund amount ready.
Can you inform me on my refund? This shows your refund status:
We’re processing your return.
Your refund has been approved and is being handled by the deadline.
Your refund has been processed and mailed or deposited. The monies may appear in your bank account after 5 days or the check may arrive by mail after several weeks.
Want to discuss your tax return? see Where’s My Refund online, call 800-829-1954 for the automated system, or call 800-829-1040 for a human (see telephone support hours) for refund assistance. Use these contacts to check if your federal tax refund has been cashed.
