With tax filing season is just around the corner, this is a good time for those who don’t normally file to consider the benefits of filing a 2021 tax return. Filing can help them claim a refundable tax credit or get an income tax refund.
Here are some things taxpayers should consider when deciding whether to file a tax return:
Find out the general reasons to file
In most cases, income, filing status and age determine if a taxpayer must file a tax return. Other rules may apply if the taxpayer is self-employed or can be claimed as a dependent of someone else. There are other reasons when a taxpayer must file. The Interactive Tax Assistant can help someone determine if they the need to file a return.
Look at tax withheld or paid
Here are a few questions for taxpayers to ask themselves:
• Did the taxpayer’s employer withhold federal income tax from their pay?
• Did the taxpayer make estimated tax payments during the tax year?
• Did they overpay last year on their taxes and have it applied to their 2021 tax?
If the answer is yes to any of these questions, they could be due a refund. They must file a 2021 tax return to get their money.
Look into whether they can claim the earned income tax credit
A working taxpayer who earned $57,414 or less last year could receive the EITC as a tax refund. For the 2021 tax year, the tax return taxpayers file in 2022, the earned income credit ranges from $1,502 to $6,728 depending on their filing status and how many children they claim on their tax return. The law allows taxpayers to use either their 2020 income or 2021 income to calculate their EITC — taxpayers may choose whichever amount gives them a larger credit. They can check eligibility by using the EITC Assistant on IRS.gov. Taxpayers need to file a tax return to claim the EITC. By law, the IRS cannot issue refunds to taxpayers claiming EITC until mid-February.
Child tax credit or credit for other dependents
Taxpayers can claim the child tax credit if they have a qualifying child under the age of 17 and meet other qualifications. Other taxpayers may be eligible for the credit for other dependents. This includes people who have:
• Dependent children who are age 17 or older at the end of 2020
• Parents or other qualifying individuals they support
The Child-Related Tax Benefits page of IRS.gov can help people determine if they qualify for these two credits.
Education credits
There are two higher education credits that reduce the amount of tax someone owes on their tax return. One is the American opportunity tax credit and the other is the lifetime learning credit. The taxpayer, their spouse or their dependent must have been a student enrolled at least half time for one academic period to qualify. The taxpayer may qualify for one of these credits even if they don’t owe any taxes. Form 8863, Education Credits is used to claim the credit when filing the tax return.
Recovery rebate credit
Individuals who didn’t qualify for a third Economic Impact Payment or got less than the full amount, may be eligible to claim the 2021 recovery rebate credit based on their 2021 tax year information. If they’re eligible, they’ll need to file a 2021 tax return even if they don’t usually file a tax return. The credit will reduce any tax owed for 2021 or be included in the tax refund.
Whether it’s a full-time job or just a side hustle, taxpayers must report gig economy earnings on their tax return. Understanding how gig work can affect taxes may sound complicated but, it doesn’t have to be. The IRS offers several resources to help gig economy taxpayers properly fulfill their tax responsibilities.
Here are some things gig workers should keep in mind.
Gig work is taxable:
• Earnings from gig economy work is taxable, regardless of whether an individual receives information returns. The reporting requirement for issuance of Form 1099-K changed for payments received in 2022 to totals exceeding $600, regardless of the total number of transactions. This means some gig workers will now receive an information return. This is true even if the work is full-time, part-time or if an individual is paid in cash.
• Gig workers may also be required to make quarterly estimated income tax payments and pay their share of Social Security and Medicare taxes.
Check worker classification:
• While providing gig economy services, it is important that the taxpayer is correctly classified.
• This means the business, or the platform, must determine whether the individual providing the services is an employee or independent contractor.
• Taxpayers can use the worker classification page on IRS.gov to see how they are classified.
• Independent contractors may be able to deduct business expenses, depending on tax limits and rules. It is important for taxpayers to keep records of their business expenses.
Pay the right amount of taxes throughout the year:
• An employer typically withholds income taxes from their employees’ pay to help cover income taxes their employees owe.
• Gig economy workers who are not considered employees have two ways to cover their income taxes:
o Submit a new From W-4 to their employer to have more income taxes withheld from their paycheck, if they have another job as an employee.
o Make quarterly estimated tax payments to help pay their income taxes throughout the year, including self-employment tax.
The Gig Economy Tax Center on IRS.gov answers questions and helps gig economy taxpayers understand their tax responsibilities.
It’s important for taxpayers to know the difference between standard and itemized deductions
Taxpayers have two options when completing a tax return, take the standard deduction or itemize their deductions. Most taxpayers use the option that gives them the lowest overall tax.
Due to all the tax law changes in the recent years, including increases to the standard deduction, people who itemized in the past might want to switch to the standard deduction.
Here are some details about the two options.
Standard deduction
The standard deduction amount increases slightly every year and varies by filing status. The standard deduction amount depends on the taxpayer’s filing status, whether they are 65 or older or blind, and whether another taxpayer can claim them as a dependent. Taxpayers who are age 65 or older on the last day of the year and don’t itemize deductions are entitled to a higher standard deduction.
Most filers who use Form 1040 can find their standard deduction on the first page of the form. The standard deduction for most filers of Form 1040-SR, U.S. Tax Return for Seniors, is on page 4 of that form.
Not all taxpayers can take a standard deduction, which is discussed in the Instructions for Forms 1040 and 1040-SR. Those taxpayers include:
• A married individual filing as married filing separately whose spouse itemizes deductions—if one spouse itemizes on a separate return, both must itemize.
• An individual who files a tax return for a period of less than 12 months. This is uncommon and could be due to a change in their annual accounting period.
• An individual who was a nonresident alien or a dual-status alien during the year. However, nonresident aliens who are married to a U.S. citizen or resident alien can take the standard deduction in certain situations.
Itemized deductions
Taxpayers choose to itemize deductions by filing Schedule A, Form 1040, Itemized Deductions. Itemized deductions that taxpayers may claim include:
• State and local income or sales taxes
• Real estate and personal property taxes
• Home mortgage interest
• Mortgage insurance premiums on a home mortgage
• Personal casualty and theft losses from a federally declared disaster
• Gifts to a qualified charity
• Unreimbursed medical and dental expenses that exceed 7.5% of adjusted gross income
Some itemized deductions, such as the deduction for taxes, may be limited. Taxpayers should review the instructions for Schedule A Form 1040 for more information on limitations.
The IRS encourages taxpayers to get informed about topics related to filing their federal tax returns in 2022. These topics include special steps related to charitable contributions, economic impact payments and advance child tax credit payments. Taxpayers can visit IRS.gov/getready for online tools, publications and other helpful resources for the filing season.
Here are some key items for taxpayers to know before they file next year.
Changes to the charitable contribution deduction
Taxpayers who don’t itemize deductions may qualify to take a deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations.
Check on advance child tax credit payments
Families who received advance payments will need to compare the advance child tax credit payments that they received in 2021 with the amount of the child tax credit that they can properly claim on their 2021 tax return.
• Taxpayers who received less than the amount for which they’re eligible will claim a credit for the remaining amount of child tax credit on their 2021 tax return.
• Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the child tax credit when they file a 2021 federal income tax return next year. This includes families who don’t normally need to file a return.
In January 2022, the IRS will send Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and any other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov online account to securely access their child tax credit payment amounts.
Economic impact payments and claiming the recovery rebate credit
Individuals who didn’t qualify for the third economic impact payment or did not receive the full amount may be eligible for the recovery rebate credit based on their 2021 tax information. They’ll need to file a 2021 tax return, even if they don’t usually file, to claim the credit.
Individuals will need the amount of their third economic impact payment and any plus-up payments received to calculate their correct 2021 recovery rebate credit amount when they file their tax return.
In early 2022, the IRS will send Letter 6475 that contains the total amount of the third economic impact payment and any plus-up payments received. People should keep this and any other IRS letters about their stimulus payments with other tax records. Individuals can also create or log in to IRS.gov online account to securely access their economic impact payment amounts.
More information:
Reconciling Your Advance Child Tax Credit Payments on Your 2021 Tax Return
There are steps people, including those who received stimulus payments or advance child tax credit payments, can take now to make sure their tax filing experience goes smoothly in 2022. They can start by visiting the Get Ready page on IRS.gov. Here are some other things they should do to prepare to file their tax return.
Gather and organize tax records
Organized tax records make preparing a complete and accurate tax return easier. They help avoid errors that lead to processing delays that slow refunds. Having all needed documents on hand before taxpayers prepare their return helps them file it completely and accurately. This includes:
• Forms W-2 from employers
• Forms 1099 from banks, issuing agencies and other payers including unemployment compensation, dividends, distributions from a pension, annuity or retirement plan
• Form 1099-K, 1099-MISC, W-2 or other income statement for workers in the gig economy
• Form 1099-INT for interest received
• Other income documents and records of virtual currency transactions
Taxpayers should also gather any documents from these types of earnings. People should keep copies of tax returns and all supporting documents for at least three years.
Income documents can help taxpayers determine if they’re eligible for deductions or credits. People who need to reconcile their advance payments of the child tax credit and premium tax credit will need their related 2021 information. Those who did not receive their full third Economic Impact Payments will need their third payment amounts to figure and claim the 2021 recovery rebate credit.
Taxpayers should also keep end of year documents including:
• Letter 6419, 2021 Total Advance Child Tax Credit Payments, to reconcile advance child tax credit payments
• Letter 6475, Your 2021 Economic Impact Payment, to determine eligibility to claim the recovery rebate credit
• Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance premium tax credits for Marketplace coverage
Confirm mailing and email addresses and report name changes
To make sure forms make it to the them on time, taxpayers should confirm now that each employer, bank and other payer has their current mailing address or email address. People can report address changes by completing Form 8822, Change of Address and sending it to the IRS. Taxpayers should also notify the postal service to forward their mail by going online at USPS.com or their local post office. They should also notify the Social Security Administration of a legal name change.
View account information online
Individuals who have not set up an Online Account yet should do so soon. People who have already set up an Online Account should make sure they can still log in successfully. Taxpayers can use Online Account to securely access the latest available information about their federal tax account.
Review proper tax withholding and make adjustments if needed
Taxpayers may want to consider adjusting their withholding if they owed taxes or received a large refund in 2021. Changing withholding can help avoid a tax bill or let individuals keep more money each payday. Life changes – getting married or divorced, welcoming a child or taking on a second job – may also be reasons to change withholding. Taxpayers might think about completing a new Form W-4, Employee’s Withholding Certificate, each year and when personal or financial situations change.
People also need to consider estimated tax payments. Individuals who receive a substantial amount of non-wage income like self-employment income, investment income, taxable Social Security benefits and in some instances, pension and annuity income should make quarterly estimated tax payments. The last payment for 2021 is due on Jan. 18, 2022.
The IRS reminds taxpayers there are things they should do before the current tax year ends on Dec.31.
Donate to charity
Taxpayers may be able to deduct donations to tax-exempt organizations on their tax return. As people are deciding where to make their donations, the IRS has a tool that may help. Tax Exempt Organization Search on IRS.gov allows users to search for charities. It provides information about an organization’s federal tax status and filings.
The law now permits taxpayers to claim a limited deduction on their 2021 federal income tax returns for cash contributions they made to certain qualifying charitable organizations even if they don’t itemize their deductions. Taxpayers, including married individuals filing separate returns, can claim a deduction of up to $300 for cash contributions to qualifying charities during 2021. The maximum deduction is $600 for married individuals filing joint returns.
Most cash donations made to charity qualify for the deduction. However, there are some exceptions. Cash contributions include those made by check, credit card or debit card as well as unreimbursed out-of-pocket expenses in connection with volunteer services to a qualifying charitable organization.
Check Individual Taxpayer Identification Number
An ITIN only needs to be renewed if it has expired and is needed on a U.S. federal tax return.
If an Individual Taxpayer Identification Number was not included on a U.S. federal tax return at least once for tax years 2018, 2019 and 2020, the ITIN will expire on Dec. 31, 2021.
As a reminder, ITINs with middle digits 70 through 88 have expired. In addition, ITINs with middle digits 90 through 99, if assigned before 2013, have expired. Individuals who previously submitted a renewal application that was approved, do not need to renew again.
Find information about retirement plans
IRS.gov has end-of-year tax information about retirement plans. This includes resources for individuals about retirement planning, contributions and withdrawals.
Contribute salary deferral
Taxpayers can make a salary deferral to a retirement plan. This helps maximize the tax credit available for eligible contributions. Taxpayers should make sure their total salary deferral contributions do not exceed the
$19,500 limit for 2021.
Get banked and set up direct deposit
Direct deposit gives taxpayers access to their refund faster than a paper check. Those without a bank account can learn how to open an account at an FDIC-Insured bank or through the National Credit Union Locator Tool.
Veterans should see the Veterans Benefits Banking Program for access to financial services at participating banks.
Connect with the IRS
Taxpayers can use social media to get the latest tax and filing tips from the IRS. The IRS shares information on things like tax changes, scam alerts, initiatives, tax products and taxpayer services. These social media tools are available in different languages, including English, Spanish and American Sign Language.
Think about tax refunds
Taxpayers should be careful not to expect getting a refund by a certain date. This is especially true for those who plan to use their refund to make major purchases or pay bills. Just as each tax return is unique to the individual, so is each taxpayer’s refund. Taxpayers can take steps now to Get Ready to file their federal tax return in 2022.
When starting a business, owners should treat all eligible costs incurred before beginning to operate the business as capital expenditures that are part of their basis in the business. Generally, the business can recover costs for assets through depreciation deductions.
For costs paid or incurred after September 8, 2008, the business can deduct a limited amount of start-up and organizational costs. They can recover the costs they cannot deduct currently over a 180-month period. This recovery period starts with the month the business begins to operate active trade or as a business.
Business start-up costs
Start-up costs are amounts the business paid or incurred for creating an active trade or business, or investigating the creation or acquisition of an active trade or business. Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit, and to produce income in anticipation of the activity becoming an active trade or business.
Qualifying costs
A start-up cost is recoverable if it meets both of the following requirements:
• It’s a cost a business could deduct if they paid or incurred it to operate an existing active trade or business, in the same field as the one the business entered into.
• It’s a cost a business pays or incurs before the day their active trade or business begins.
Start-up costs include amounts paid for the following:
• An analysis or survey of potential markets, products, labor supply, transportation facilities, etc.
• Advertisements for the opening of the business.
• Salaries and wages for employees who are being trained and their instructors.
• Travel and other necessary costs for securing prospective distributors, suppliers, or customers.
• Salaries and fees for executives and consultants, or for similar professional services.
Nonqualifying costs
Start-up costs don’t include deductible interest, taxes, or research and experimental costs.
Purchasing an active trade or business
Recoverable start-up costs for purchasing an active trade or business include only investigative costs incurred during a general search for or preliminary investigation of the business. These are costs that help in deciding whether to purchase a business. Costs incurred to purchase a specific business are capital expenses that can’t be amortized.
What this means to you is if you take tributes or any form of payment over $600 from PayPal, Cashapp, Zelle, or any other apps they will send you a 1099-K and IRS will get a copy too. Save this form for your taxes. IRS will cross reference it with the tax return that you file.
The American Rescue Plan Act of 2021 is intended to combat the economic and health impacts of the COVID-19 pandemic but within this $1.9 trillion stimulus package is a provision that will spell significant change for third-party settlement organizations and many gig workers.
The Act, which was signed into law March 2021, substantially reduces the reporting threshold associated with Form 1099-K from $20,000 in aggregate payments and 200 transactions to a threshold of $600 in aggregate payments, with no minimum transaction requirement. Form 1099-K is used to report payment card and third-party network transactions.
This change will become effective in 2022 and will impact the January 2023 filings.
Why the change? In short, the IRS is looking to reduce the tax gap through such measures as voluntary taxpayer compliance and information reporting. The tax gap is the difference between what taxpayers owe and what they pay timely.
The most recent IRS estimates of the tax gap relies on data from 2011 to 2013 and puts the average gross tax gap at $441 billion per year. Furthermore, a study by economists Natasha Sarin and Lawrence Summers projects that, between 2020 and 2029, the IRS will fail to collect nearly $7.5 trillion of taxes it is due.
Self-employment income is frequently underreported for income tax purposes, and, as noted by the Treasury Inspector General for Tax Administration (TIGTA), IRS tax gap studies estimate that when third parties do not provide information to the IRS, 63 percent of income is misreported. With the rise of the gig economy (think: Uber, Etsy, Lyft, etc.) in recent years, it is “likely that self-employment tax underreporting will continue to be a growing problem if not addressed,” the TIGTA stated.
“The purpose of lowering the threshold is to increase voluntary compliance. Tax gap studies through the years have consistently demonstrated that third-party reporting significantly raises voluntary compliance. So, by lowering the threshold, more transactions are now subject to reporting,” said Janice Krueger, subject matter expert for Greatland.
What it Means for Gig Workers
The change could be an unwelcome surprise for gig workers, especially if they haven’t been closely tracking their tax liability.
“The gig economy is a labor market based on temporary, flexible, freelance jobs where an individual earns income by providing on-demand services or goods. Income earned from the gig economy is taxable income whether a gig worker receives an information return or not. So, gig work is a certain activity a person does to earn income, often through an app or a digital platform,” said Krueger. “With the COVID-19 outbreak many individuals pursued other ways of earning income, especially if their current job was impacted by the pandemic.”
To further explain, consider the following example: Sally earns income as a driver through a ride-sharing platform. Currently, Sally would have to both earn at least $20,000 in payment for services and provide a minimum of 200 rides in a year before the online platform business, or third-party settlement organization (TPSO), would have an information reporting obligation. In such cases, the TPSO is required to send both Sally and the IRS a Form 1099-K listing the total amount of payments made during the year.
Effective in 2022, Sally would have to earn only $600 in payment for services, with no minimum of rides in a year, before the TPSO would have an information reporting obligation.
Under the new law, many more individuals will be receiving Form 1099-K reporting income from gig work, and accurately tracking and recording their tax liability (i.e., earned income and incurred expenses) will be especially important because it will need to be reported on their tax return.
“The Form 1099-K reports the gross amount of a reportable payment. It doesn’t include any adjustments for credits, cash equivalents, discounts, and so forth. The dollar amount of each transaction is determined on the date of the transaction,” added Krueger. “The other thing to note is if a gig worker is classified as an employee, for example, the individual will receive a W-2 from the employer. So, each of those gig workers needs to be classified first as whether they are an employee or an independent contractor.”
Impact on TPSOs
The change will have a major impact on TPSOs of goods and services. Not only does it significantly increase the number of Form 1099-Ks they will be required to file in a given year, but many will be required to take a closer look at their technology and processes to ensure compliance.
As explained by PwC, “The reduction in the reporting threshold will affect the onboarding practices of many TPSOs, specifically the process for collecting TINS [taxpayer identification numbers] that previously were based on higher thresholds. Failure to recognize the need for collecting TINs earlier in the TPSO relationship could expose organizations to excessive backup withholding obligations or liability if proper information is not obtained or the withholding is missed.”
Echoing the sentiment, Krueger said, “There’s going to be significantly more entities receiving 1099-K information. Third-party settlement organizations are going to be sending out many more 1099-Ks than they have in the past. So, it is important that when they onboard an entity, it should be a standard practice to obtain a taxpayer identification number upfront since this number is required to be reported on the 1099-K. If an entity provides incorrect taxpayer identification number information, then the third-party settlement organization would need to request correct information and to begin backup withholding if a correct TIN is not received.”
When a name and TIN combination doesn’t match the IRS database, it is the TPSO’s responsibility to then notify the entity via a B Notice (backup withholding notice). Unfortunately, rectifying the issue can prove time-consuming and frustrating for TPSOs. Furthermore, ignoring the mismatch can lead to penalties for the TPSO.
Take Action
Fortunately, there are steps that TPSOs can take to help ease the burden of ensuring compliance.
“It is essential to find a strategy that fully supports all reporting requirements and lessens the burden of annual wage and income reporting. Not only is it critical to find a 1099-K filing solution, but it’s also important find a W-2 and 1099-NEC solution in the event that workers are classified as employees or independent contractors not being paid by payment cards through a TPSO,” advised Krueger.
Implementing a comprehensive online 1099 and W-2 reporting platform, like Yearli.com by Greatland, can help TPSOs ensure they have access to a streamlined and compliant process for meeting all of these filing requirements.
It is important to note that, while the reduction of the reporting threshold associated with Form 1099-K is a federal threshold, there are Form 1099 filing requirements that vary by state and some states have already adopted a lower 1099-K threshold.
Yearli.com has a year-round compliance staff that remains in close contact with federal and state agencies to help ensure compliance at both the federal and state levels. It provides guidance to users on state reporting requirements and informs them of the best method to complete their filing obligations, as well as offers federal e-filing and a print and mail service for recipient copies.
Yearli.com also provides an automated TIN matching service, which can help TPSOs ensure that, when onboarding, names and TINs match the IRS database. Getting the name and TIN from an entity upfront and leveraging an automated TIN matching service is perhaps the best way for TPSOs to avoid backup withholding. Should a TPSO be subject to backup withholding, Yearli.com also supports the filing of Form 945 to the IRS.
The reduction of the reporting threshold associated with Form 1099-K will no doubt have a significant impact on the gig economy but, with the right tools and resources in place, TPSOs can alleviate the stress of ensuring compliance.
If you are sex worker full time it may benefit you to form an LLC or an S-Corporation for tax purposes. If you have questions or need help feel free to ask us.
Small business owners have a variety of tax responsibilities. The IRS knows that understanding and meeting tax obligations is vital to the success of all businesses, especially a new one. IRS.gov has the resources and information to help people through the process of starting a new business.
Here are some tips for new entrepreneurs:
Choose a business structure.
The form of business determines which income tax return a business taxpayer needs to file. The most common business structures are:
• Sole proprietorship: An unincorporated business owned by an individual. There’s no distinction between the taxpayer and their business.
• Partnership: An unincorporated business with ownership shared between two or more people.
• Corporation: Also known as a C corporation. It’s a separate entity owned by shareholders.
• S Corporation: A corporation that elects to pass corporate income, losses, deductions and credits through to the shareholders.
• Limited Liability Company: A business structure allowed by state statute.
Choose a tax year.
A tax year is an annual accounting period for keeping records and reporting income and expenses. A new business owner must choose either:
• Calendar year: 12 consecutive months beginning January 1 and ending December 31.
• Fiscal year: 12 consecutive months ending on the last day of any month except December.
Apply for an employer identification number.
An EIN is also called a federal tax identification number. It’s used to identify a business. Most businesses need one of these numbers. It’s important for a business with an EIN to keep the business mailing address, location and responsible party up to date. IRS regulations require EIN holders to report changes in the responsible party within 60 days. They do this by completing Form 8822-B, Change of Address or Responsible Party and mailing it to the address on the form.
Have all employees complete these forms:
• Form I-9, Employment Eligibility Verification U.S. Citizenship and Immigration Services
• Form W-4 Employee’s Withholding Allowance Certificate
Pay business taxes.
The form of business determines what taxes must be paid and how to pay them.
It’s not too late for low-income families to sign up for advance child tax credit payments.
The IRS urges anyone who normally isn’t required to file a tax return to explore the tools available on IRS.gov. The Eligibility Assistant can help determine eligibility for the advance child tax credit. The Non-filer Sign-up tool can help people file a simplified tax return to sign up for these payments. Some non-filers may also be eligible for the $1,400 per person Economic Impact Payments and the recovery rebate credit. People can get these benefits, even if they don’t work, have no income or don’t have a permanent address.
For these families, each advance CTC payment is up to $300 per month for each qualifying child under age 6 and up to $250 per month for each child ages 6 through 17.
Payments are generally issued on the 15th of each month through December 2021.
Here are more details and information about how to get the payments:
• The IRS sends advance child tax credit payments to eligible families who filed a 2019 or 2020 income tax return. This includes people who successfully use the Non-filer Sign-up tool for advance CTC, available only on IRS.gov. People can access the Non-filer Sign-up tool or the step-by-step guide for using it on IRS.gov.
• Aside from filing a simplified return from the Non-filer Sign-up tool, families don’t have to do anything else if they are eligible to receive monthly payments.
• The Non-filer Sign-up tool is available until October 15, 2021. Using the tool by 11:59 p.m. ET on any month’s deadline will apply to the next month’s payment.
• Families who receive their first monthly payment in any month after July will still receive their total advance payment for the year. This means that the total payment will be spread over fewer months, rather than six months, making each monthly payment larger.
• The IRS encourages people to request payments by direct deposit, which is faster and more secure than other payment methods. People who don’t have a bank account should visit the Federal Deposit Insurance Corporation website for details on opening an account online. They can also use the FDIC’s BankFind tool to locate an FDIC-insured bank.
• Finally, BankOn, American Bankers Association, Independent Community Bankers of America and National Credit Union Administration have lists of banks and credit unions that can open an account online. Veterans can see the Veterans Benefits Banking Program for financial services at participating banks.