Free tax preparation will look different, but it’s still available. Here’s how to find it
Virtual preparation help and drop-off services will largely replace in-person meetings.
Check out this story on azcentral.com: https://www.azcentral.com/story/money/business/consumers/2021/02/22/how-find-free-tax-preparation-services-arizona/6753822002/
The Arizona Department of Revenue (ADOR) advises taxpayers who receive a Form 1099-G from the Arizona Department of Economic Security (DES) for unemployment benefits they did not receive to contact the Arizona Department of Economic Security for a corrected form.
Form 1099-G for Arizona Unemployment Insurance (UI) or Pandemic Unemployment Assistance (PUA) benefits are sent to the taxpayer and the Internal Revenue Service (IRS) as the compensation is taxable income. Since the amount is reported on the federal income tax return, which is the starting point for Arizona income taxes, taxpayers also report the amount on the state individual income tax return.
Unfortunately, some taxpayers have fallen victim to fraudsters stealing personal information and filing fraudulent claims for unemployment benefits. States across the nation have seen a significant surge in unemployment benefit fraud, largely in association with identity theft. There has not been a breach of information stored by DES. Rather, criminals are using phishing scams, previous corporate data breaches and other tactics to collect information from individuals across the country and file for UI and PUA benefits in their name.
Taxpayers who receive an incorrect Form 1099-G for UI or PUA benefits should contact DES to request a revised Form 1099-G showing they did not receive these benefits. DES will send a corrected 1099-G to the IRS and the taxpayer to adjust the unemployment compensation income. A corrected Form 1099-G showing zero unemployment benefits in cases of identity theft will help taxpayers avoid receiving an unexpected tax bill. The IRS advises that taxpayers who cannot obtain a timely, corrected form should still file an accurate tax return, reporting only the income they received. For more counsel from the IRS, click here.
https://www.irs.gov/identity-theft-fraud-scams/retrieve-your-ip-pin
If IRS assigned you (or you applied for) an Identity Protection PIN (IP PIN) and you lost it or you didn’t receive our CP01A Notice with your new IP PIN, you’ll need to retrieve it or have it reissued to ‘e-file’ your return.
You may use our Get an IP PIN online tool to retrieve your current IP PIN. We require you to register and verify your identity in order to use the tool. This process is essential to protect your personal and tax information. Please refer to “Step 2: What You Need”, before using the online tool. Follow the prompts to retrieve your IP PIN.
If you previously created an online account and obtained an IP PIN, access Get an IP PIN and log in to your account with your username and password. You may be required to verify your identity again due to our increased account security. Follow the prompts to retrieve your IP PIN.
If you’re unable to retrieve your IP PIN online, you may call us at 800-908-4490 for specialized assistance, Monday – Friday, 7 a.m. – 7 p.m. your local time (Alaska & Hawaii follow Pacific Time), to have your IP PIN reissued. An assistor will verify your identity and mail your IP PIN to your address of record within 21 days.
Get ready for tax season using IRS Online Account
WASHINGTON — The Internal Revenue Service today reminded taxpayers they can securely access their IRS account information through their individual online account.
The IRS regularly adds features to online account. For example, people can now check the amounts of their Economic Impact Payments (EIPs) to help them accurately calculate any Recovery Rebate Credit they may be eligible for on their 2020 tax return. The EIP amounts can be found on the Tax Records tab. Amounts will show as “Economic Impact Payment” for the first payment and “Additional Economic Impact Payment” for the second payment. For married filing joint individuals, each spouse will need to sign into their own account to retrieve their portion of the payments. For more information regarding the credit, see Recovery Rebate Credit. Additionally, taxpayers can view:
They can also:
Later in 2021, taxpayers will be able to digitally sign certain authorization forms, such as a power of attorney, initiated by their tax professional.
Here’s how to get started for new users:
Once the initial authentication process is complete, returning users can use the same username and password to access other IRS online services such as Get Transcript and Get An Identity Protection PIN (IP PIN) (if applicable).
All password-protected online IRS tools for taxpayers are protected by multi-factor authentication, offering extra security precautions.
The first step of tax preparation is gathering records
As taxpayers get ready to file their 2020 tax return, they should start by gathering their records. Taxpayers should gather all year-end income documents to help ensure they file a complete and accurate 2020 tax return and avoid refund delays.
Taxpayers should have all necessary records handy, such as W-2s, 1099s, receipts, canceled checks and other documents that support any income, deductions or credits on their tax return.
Most taxpayers should have already received income documents including:
Here are a couple other things taxpayers can do to prepare to file.
View IRS account online
Taxpayers can view their online account. This allows them to see the latest information about their federal tax account and most recently filed tax return through a secure and convenient tool on IRS.gov. This can help taxpayers if they need information from last year’s return.
People with an account on IRS.gov can also see the amounts of their Economic Impact Payments. This will be helpful to eligible individuals who either did not receive any Economic Impact Payments or received less than the full payments. They may claim the recovery rebate credit on their 2020 federal tax return.
People should visit Secure Access: How to Register for Certain Online Self-Help Tools for more information about how to create an account or how to reset the username or password.
Review unemployment benefits
Unemployment compensation is taxable and must be included as gross income on a taxpayer’s return.
Taxpayers should receive a Form 1099-G showing their unemployment income. They can have federal taxes withheld from their unemployment benefits or make estimated tax payments, but many do neither. In that case, taxes on those benefits need to be paid when their 2020 tax return is filed. Therefore, taxpayers who didn’t have tax withheld from their payments may see a smaller refund than expected or possibly have a tax bill.
Individuals who receive a Form 1099-G for unemployment compensation they were not paid should contact their state tax agency and request a corrected Form 1099-G. States should not issue Forms 1099-Gs to taxpayers they know to be victims of identity theft involving unemployment compensation. Taxpayers should file an accurate return including the income they actually received.
Taxpayers who are victims of identity theft involving unemployment compensation should not file an identity theft affidavit with the IRS.
More information:
Tax Topic 418, Unemployment Compensation
Publication 525, Taxable and Nontaxable Income
What taxpayers need to know to claim the earned income tax credit
Share this tip on social media — #IRSTaxTip: The first step of tax preparation is gathering records. https://go.usa.gov/xscT7
