At IRS.gov, you will find information on 1040 Central about lower tax rates, larger child tax credits and the elimination of the "marriage penalty." There are new income limits for Earned Income Tax Credit recipients. Investors will find new rates on capital gains and dividends and a revised Schedule D. Taxpayers also should review the Advance Child Tax Credit information to avoid an error on their return that could slow their refund.
This week, 28 million veteran electronic tax filers will receive postcards and 34 million paper filers will receive the Form 1040 booklets as the 2004 filing season gets underway. The IRS expects to process 131 million individual tax returns this year, approximately the same as last year. This year, more than 53 million taxpayers will opt for the easier and faster IRS e-file, which also is the quickest route to a refund.
IRS Commissioner Mark W. Everson unveiled the new 1040 Central feature on IRS.gov that is designed specifically for the individual taxpayers and for the tax professionals helping them. The new page pulls together much of the step-by-step information taxpayers need to prepare and file a return and check on refunds.
"At 1040 Central, taxpayers will find virtually everything they need for their 2003 tax return. The 1040 Central page can be a one stop location for help," Everson said. "The 1040 Central section reflects our effort to make IRS.gov the easiest, fastest and best option for taxpayers. You dont have to come to us; we are available to you electronically 24 hours a day, seven days a week."
At 1040 Central, individuals will find:
Whats New This Year, which highlights the latest tax law changes, tax tips, news releases and frequently asked questions
Get Ready to File, which provides links to information about the Earned Income Tax Credit, the 2003 Advance Child Tax Credit and commonly used forms and tax instructions
File Your Return, which provides links to IRS e-file and Free File, the free service provided by IRS partners in the tax software preparation industry
After You File, which includes the interactive Wheres My Refund? that allows taxpayers to track the status of their refund
More Assistance, which helps taxpayers locate additional information sources
The 1040 Central page also can help taxpayers avoid errors when it comes to the Advance Child Tax Credit that 20 million families received last year. The child tax credit increased to $1,000 from $600. Taxpayers must reduce their 2003 claimed credit by the amount of the advance payment check they received last year. The amount of the advance payment was shown on Notice 1319 mailed to eligible taxpayers last year, and taxpayers also can check the amount of their Advance Child Tax Credit at 1040 Central.
At 1040 Central, taxpayers also will find easy access to IRS e-file information, including lists of e-filing tax practitioners by zip code, and access to IRS Free File, the partnership with private-sector tax preparation software manufacturers. The IRS will provide additional information about Free File later this month. More than 2 million taxpayers used Free Files free services last year, its first year of operation.
Taxpayers who use IRS e-file have a higher satisfaction rating than those who still use paper returns, according to the American Customer Survey Index, which rates private and public sector service industries. Filing electronically remains the fastest, easiest route to a quick refund. When used with direct deposit, e-file means a refund in about two weeks or even less.
Source: Internal Revenue Service