Tax Filing Deadlines
What is a major concern regarding modernizing the tax system during tax filing season?
According to financial expert Elizabeth Scholzley, while there is broad bipartisan agreement that modernizing the tax system to make returns more efficient is good policy, there's a significant risk in implementing changes too quickly. The "move fast and break things" approach, especially during tax filing season, could adversely affect those who depend most on their tax returns. This concern is particularly relevant given that the top 1% of taxpayers are responsible for one-quarter of all missing tax revenue. Rushed modernization efforts might disrupt the processing system, potentially delaying refunds for vulnerable taxpayers who rely heavily on timely returns.
Watch clip answer (00:27m)
ABC News
01:42 - 02:09
How could IRS layoffs impact tax returns during tax season?
The IRS layoffs occurring during tax season could potentially delay processing times for the 160 million tax returns expected from individuals and businesses. Tax experts warn that fewer people working on returns, system disruptions, or staff distraction from complying with external requests (like those from Dogecoin) could extend processing times. These delays would particularly impact lower-income Americans who rely on timely tax refunds. With reduced personnel handling the massive volume of returns during this busy period, the efficiency of processing could be compromised, affecting millions of taxpayers waiting for their refunds.
Watch clip answer (00:49m)ABC News
00:52 - 01:42
What is the deadline for YouTube creators to resubmit their US tax forms and why is it important?
YouTube creators worldwide need to resubmit their US tax forms by December 10, 2024, as forms submitted in 2021 will expire on December 31, 2024. This deadline is crucial because failure to update tax information could result in incorrect withholding taxes being applied to creator earnings. The recommendation to submit by December 10th (rather than the actual expiration date) ensures that forms are processed and approved before year-end, allowing the correct withholding rate to be applied. Timely submission helps creators maintain accurate tax information in AdSense and avoid potential financial implications.
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YouTube Creators
00:49 - 01:13
Why is it important to file tax returns early this year?
Filing tax returns early this year is particularly important due to potential IRS staffing changes that could affect processing times. According to personal finance reporter Medora Lee, taxpayers should opt for direct deposit when filing, as this is the fastest way to receive tax refunds. The news anchor emphasizes this point, stating "If there's a year to do it early, it's this year," highlighting the unusual urgency for the current tax season. By filing early and choosing direct deposit, taxpayers can avoid potential delays and receive their refunds more quickly.
Watch clip answer (00:10m)
CBS News
03:46 - 03:56
What are ways people can reduce their tax bill?
Taxpayers can reduce their tax bill by maximizing contributions to their 401k or other retirement funds before the April 15 deadline, which provides pre-tax benefits for the 2024 tax season. This is a key opportunity that's still available. Additionally, given potential IRS staffing changes mentioned by Trump, including cutting staff or reassigning agents to border duties, it's advisable to file taxes as early as possible. Filing promptly ensures taxpayers receive assistance before any potential reduction in IRS services occurs.
Watch clip answer (00:48m)CBS News
02:52 - 03:40
What health insurance deductions are available for self-employed individuals?
Self-employed individuals who purchase their own health insurance can deduct all health insurance premiums not only for themselves, but also for their spouse and children. This is a significant tax benefit that helps offset the cost of obtaining private health coverage when you don't have employer-sponsored insurance. To properly claim this deduction, meticulous record-keeping is essential. Self-employed taxpayers must maintain organized documentation and save all receipts related to their health insurance premium payments. Unlike traditional employees who lost the ability to deduct unreimbursed expenses after the 2018 tax reforms, self-employed individuals retain this valuable tax advantage.
Watch clip answer (00:18m)CBS News
01:48 - 02:06