You could call it tax refund shock. This tax season get ready for surprises that could impact your budget. You can’t count on last year’s popular tax breaks and there’s no stimulus money headed your way. Learn what to expect and what you should know about getting help.
Tax refunds are smaller this year
If you’ve already done your taxes, you may already know that tax refunds are smaller this year. In general, people are getting back less money. Last year the average refund was $3,176. So far this year the average is $1,900. If you haven’t started your taxes yet you need to get on it and if you’re considering getting someone to help you there are a few things, you should look out for.
“We want them to come ready, especially with their documents. So very important,” said Cristina Cave, BakerRipley.
Getting your taxes done early this year is key. BakerRipley has 24 locations around the Houston area where you can get free tax help. Families who earn $58,000 or less qualify.
“We have a preparer quality review process. So at least two individuals look at the return to make sure it’s done correctly,” said Joel Flavin, BakerRipley.
If you don’t qualify for BakerRipley free tax help and are shopping around be cautious.
1. Be wary of any preparer that offers to get you a huge return
“If you’re providing the same information, it should bring back the same refund or the same result. So be very mindful of that. If it looks too good to be true,” said Cave.
2. Know the fees upfront
“If it depends on how much you are going to get on your refund that is a red flag because sometimes what they do is that they inflate the refund and the credits, so your refund is larger,” she explains.
3. You’ll also want to ask if they have a tax preparer number
All paid preparers are required to have a tax preparer number.
4. Make sure you get the right paperwork
“They need to provide you with a signed copy of your tax return if they don’t do that is a red flag as well,” said Cave.
In some cases, a fraudulent tax preparer tells a client they need to fill out the information at a later time. Do not leave until you have a signed copy of a final return.
5. Verify the return will be deposited in your account
Fake tax preparers have been known to set up returns to deposit into their own account. They may tell you this is how it works, or they may tell you the fee you owe them can be taken out this way. Do not give anyone permission to have all of your IRS return deposited into their account.
6. Protect your personal tax information
Special Agent Brett Rovey with IRS criminal investigation works to fight tax fraud in Houston. As an extra layer of protection, he recommends registering for an identity protection pin to help prevent someone else from using your information.
‘This pin number will have to be used when you try to go file your tax return. Actually, have to be given by you like your social and placed on your tax return when it’s filed the paper or electronically,” explains Special Agent Rovey.
The FBI special investigation unit fighting tax fraud in Houston talked with Amy Davis about how criminals are targeting Houstonians. If you suspect tax fraud you should report it to the FBI.
Free tax help in the Houston area
You can call the United Way at 2-1-1 for help finding free tax help in our area. Trained operators speak several languages and can help connect callers with a center near them. You can also search the IRS database for free tax help.
Tax deadline day this year is April 18, 2023. For more information on BakerRipley’s tax services, visit www.freetaxcenters.org.
Do you have a tax question?
We are working to get answers to your tax questions. Text “Ask Amy” to 1-866-996-5772 along with your question. You can also email AskAmy@kprc.com