Tax Day is approaching, and with it, a flurry of questions about taxes, tax returns, and the fate of the Internal Revenue Service. In this article, we’ll cover some of the most common questions we’ve received and provide our expert advice to help you navigate the tax season.
Is the IRS going away?
There’s little to no evidence that the Internal Revenue Service is being dismantled. The agency is crucial to funding the expenditures of the federal government and enforcing tax law. However, the IRS, along with other federal agencies, has faced threats of staff cuts. Last week, the IRS began laying off up to 25% of its workforce. A hiring freeze is also in effect across the federal government after an executive order signed by Trump on Jan. 20. To date, neither the layoffs nor the freeze have delayed the processing of tax refunds this year.
- Don’t worry, the IRS is still operational and will continue to process tax refunds.
- The layoffs and hiring freeze are not related to the processing of tax refunds.
- The IRS is not going anywhere anytime soon.
What’s the best filing option if you have to file multiple state returns?
We’ve yet to find a better online DIY solution for taxpayers that need to file multiple state returns than Jackson Hewitt’s online tax option. Jackson Hewitt offers federal filing and unlimited state returns for $25, regardless of your tax situation. The service is pretty bare bones, however, with no option to upload files or tax forms. But if you have a good handle on the forms and schedules you’ll need, the service may be a good fit for you.
- TurboTax
- FreeTaxUSA
- H&R Block
Do I have to pay the IRS by April 15 if I’m waiting on a state refund?
If you have a federal tax bill, you’ll need to pay it by April 15. If your state return is large enough to cover your federal tax bill, you can use that money if you receive it in time. If you haven’t filed yet, don’t expect to see your state refund by the filing deadline.
- Pay the balance and wait to be reimbursed by your state.
- Set up a payment plan with the IRS and pay what you can until you can pay the balance in full.
Does my child need to file taxes?
Your child may choose to file a tax return, even if they don’t have to, in order to get a refund on taxes deducted from their paychecks. However, your child is mandated to file a tax return if they:
- No, you’re free to claim your child as a dependent on your tax return and claim the child tax credit.
- Consult a tax professional or CPA if you’re unsure.
Are services like TurboTax and H&R Block really free?
Both TurboTax and H&R Block have free tax filing options available to taxpayers. TurboTax Free Edition is available for taxpayers filing simple form 1040 returns only, with basic credits like the Earned Income Tax Credit, Child Tax Credit, and student loan interest. Only 37% of all customers qualify for TurboTax Free Edition, according to the company. H&R Block says 55% of filers qualify to file their tax return for free. Both work well if you qualify, but both services will try to upsell you.
“It’s always a good idea to check the forms you need to report are covered by a free tier before signing up for a free service.”
— Tax expert
Should you increase your withholdings if you live and work in different states?
In most cases, this won’t be necessary. You only need to alter your withholdings on your W-4 form if you repeatedly find yourself owing federal or state taxes after filing a return. To combat this, you can either lower your exemptions on your W-4 or add an additional tax withholding amount for each check to potentially lower your tax bill.
- Lower your exemptions on your W-4.
- Add an additional tax withholding amount for each check.
How do I claim student loan interest on my taxes?
Your loan servicer will send you a 1098-E tax form if you paid over $600 in student loan interest in 2024. You may be able to deduct a portion of your student loan interest on your tax return, which lowers your taxable income.
- Claim the student loan interest deduction on your tax return.
- Use online tax software to add the deduction.
What online option works best for me?
Everyone’s tax situation is different. So it’s best to review all registered IRS e-file providers, including those on our best tax software list, to determine which option works best for you.
| TurboTax | FreeTaxUSA | H&R Block |
| IRS Free File | TaxAct | FreeTaxUSA |
Can I file an extension with the IRS and pay later this year?
You can file a tax extension by April 15 using Form 4868, but you must still pay your tax bill in full by the tax deadline to avoid penalties. Not having all your tax documents or experiencing an unexpected life event are good reasons to file an extension, but it won’t push back your tax bill due date.
- Filing an extension won’t push back your tax bill due date.
- Set up a payment plan with the IRS to pay what you can until you can pay the balance in full.
Will you file my taxes for me?
No. While I may know more about filing taxes than the average person, I’m not a tax professional or accountant. I know that filing your taxes may not be your idea of fun, but there are many DIY online tax software options that are good at holding your hand through the filing process. Many like FreeTaxUSA and TaxAct also offer contextual help to answer common tax questions.