You should still file your taxes, even if you can’t pay.

In most cases, the failure-to-file penalty can be 10 times more than the failure-to-pay penalty. So if you can’t pay in full, you should file your tax return and pay as much as you can.

If you own stock, your dividend income may be classified as “Qualified Dividends” on the Form 1099-DIV you receive from the company. While ordinary dividends are taxed at your usual income tax rate, qualified dividends are taxed at the long-term capital gains tax rate, which is significantly lower in most cases. In fact, for lower-income taxpayers, the 2018 tax rate on qualified dividend income is 0%.

Historically, the tax rate on your qualified dividend income was directly linked to (but usually less than) your income tax rate. However, the 2017 Tax Cuts and Jobs Act (TCJA) created designated income brackets for the three qualified dividends tax rates (0%, 15%, and 20%). These brackets are independent of ordinary income tax brackets and will be adjusted for inflation annually. Therefore, the tax rate on your qualified dividends could change even if your income tax rate does not, or vice versa

The IRS will never:

– Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card, or wire transfer
– Demand that you pay the taxes without the opportunity to question or appeal the amount owed
– Threaten to bring in local police, immigration officers or other law enforcement officers

Under the Tax Cuts and Job Act (TCJA), starting in 2018, the annual contribution limit for Achieving a Better Life Experience (ABLE) accounts has been increased from $14,000 to $15,000.

You may also be able to claim the Saver’s Credit for a percentage of your contribution to an ABLE account if you’re the designated beneficiary.

In order to help taxpayers with the changes under the Tax Cuts and Jobs Act (TCJA), the IRS has announced that it is waiving the estimated tax penalty for many taxpayers who fell short of their taxes owed through income tax withholding and estimated tax payments for the 2018 tax year.

They are generally waiving the penalty for any taxpayers who paid at least 85% of their total tax liability, where the usual percentage threshold is 90% to avoid a penalty.

Under the Tax Cuts and Job Act (TCJA) for 2018, a qualifying child must have a Social Security Number in order to claim the Child Tax Credit.

To be a qualifying child, they must be a citizen, national, or resident of the United States and must not have attained 17 years of age by the end of the tax year.

If you have a child who was under the age of 13 throughout 2018 or who was under the age of 17 and requires assistance for self-care, you might be eligible to claim both the Child Tax Credit and the Child and Dependent Care Credit.

To qualify for the Child Tax Credit (also known as the “per-child credit”), you must have a child who was less than 17 years old throughout 2018, can be claimed as a dependent on your tax forms, and lived with you for at least six months of the year. The income limit at which a phase out of the credit begins was nearly quadrupled under the Tax Cuts and Jobs Act of 2017, to $200,000 ($400,000 for married filing jointly). The credit itself doubled from $1,000 to $2,000 per child.

f you’re claiming the Earned Income Tax Credit or Additional Child Tax Credit, both of which are refundable credits, your refund will be released by the IRS starting from February 27, 2019. A refundable credit is one which gives you cash back even if you didn’t pay any tax into the system during the year.

You may check the status of your refund at https://www.irs.gov/refunds.

The IRS has confirmed that it will begin processing returns on January 28th, 2019, and provide refunds as scheduled despite the government shutdown.

The filing deadline for 2018 tax returns is Monday, April 15th, 2019. If you live in Maine or Massachusetts, you have until April 17th due to public holidays in those states.