Taxation

Planning for Tax Time.

As you probably know, almost everyone with an income needs to file a tax return. You may be dreading tax time because you’re afraid that you owe money to the Internal Revenue Service (IRS) or the state. But, it’s just as likely that you’ll be getting a refund!

One benefit of filing taxes is that you may get extra money back through tax credits, above and beyond what was withheld from your paycheck. Another benefit is that some tax credits can lower the income taxes you have to pay and might even give cash refunds to families whose incomes are too low to owe taxes.

As you get ready to file your taxes, here are a couple of things to keep in mind:

• You must file federal forms 1040 or 1040SR for those 65+ years old, and state form WI 1 to claim tax credits. If you file form WI 1NPR for nonresidents or part-time residents, you must have lived in Wisconsin year-round to get tax credits.
• Say “no” to Refund Anticipation Checks (RAC). RACs don’t get you your money any sooner and the rates and fees really add up. The result is a lot of money out of your pocket!