2023 tax season underway in Alabama | news

The 2023 tax season started Monday, and the filing deadline for individual income tax returns is April 18. To assist in this filing, the Alabama Department of Revenue (ALDOR) is offering suggestions on how to file your tax return and receive your refund as quickly as possible.

ARCHIVE ELECTRONICALLY

Taxpayers who file their tax returns electronically and have them deposited directly into their bank accounts receive refunds faster than those who file tax returns on paper. It’s also more convenient to submit from home and eliminates the need to send paper returns.

For more information on electronic filing options, visit https://www.revenue.alabama.gov/individual-corporate/individual-income-tax-electronic-filing-options/.

FREE FILE

Taxpayers can file state tax returns for free with My Alabama Taxes, but taxpayers must create an account. Sign in at myalabamataxes.alabama.gov. Individual income tax forms and instructions are available at https://www.revenue.alabama.gov/forms/?jsf=jet-data-table:form-table&meta=form-year:2022&tax=form-categories:154.

security

SUBMIT EARLY – Once a taxpayer receives their W-2s, 1099s, and other documents, they should file as soon as possible. Early filing can help ALDOR approve refunds sooner and allows taxpayers to forestall ID thieves.

EMPLOYER

Employers must submit W-2 information for employees to ALDOR by January 31. Employers who file late can face penalties and delay the processing of their employees’ tax returns.

FOLLOW UP

After returns have been submitted, ALDOR may send letters requesting further information. When a taxpayer receives a letter from ALDOR, they should respond quickly so the department can verify their information and get their refund as soon as possible. ALDOR initially never contacts taxpayers by phone, SMS or email, only by post.

BEWARE OF FRAUD

Do not give anyone your personal information without confirming that it is with the relevant authorities. To detect and combat tax identity theft, ALDOR uses a variety of methods to validate identities and tax returns.

Be aware that ALDOR may send: An identity verification letter asking the taxpayer to take a short online quiz or provide copies of documents to verify their identity (https://www.revenue.alabama. gov/individual-corporate/alabama-taxpayer-Identity-Protection-Program/) or a tax return letter directing the taxpayer to verify online that he or his representative has filed the tax return that ALDOR received.

ALDOR stops and reviews approximately 3 to 5 percent of individual income tax returns each year to correct math errors or request missing information. To ensure that the tax returns accurately reflect the information and intentions, ALDOR may issue a “Request for Information” letter requesting missing or additional information to support the dates reported in the tax return, or a “Tax Computation Change ”-Letter explaining changes made to the tax return.

Refunds

The date a declaration is filed and how the declaration is filed largely determines when the refund can be issued. For example, electronically submitted returns are received and processed significantly faster than returns sent to ALDOR by post. Even if an error-free return is sent in January or February, the taxpayer can expect to receive their refund sooner than if the return was submitted in March or April. Generally, about 30 percent of income tax returns are filed between April 1st and April 30th. Statements submitted so close to the deadline may take up to 90 days to be processed.

  • First-time Applicants: It will take additional time for new applicants to be validated and entered into ALDOR’s system. Until this time, the Refund Status website does not recognize these taxpayers and is reporting their tax returns as “not recorded in the system”. It takes approximately 10-12 weeks to process the return of a first-time applicant.

E?filer:

  • In general, e-filers can expect their refund approximately 8-10 weeks after the date they receive their filing confirmation from the state.
  • Paper declaration: It takes about 8-12 weeks to process the return. ALDOR employees must manually enter information from paper returns into the database.
  • If the taxpayer has received a letter from ALDOR requesting additional information or verification of identity, the refund will be deferred until the requested information is received and verified by the department.

ALDOR will begin releasing income tax refunds on March 1st. This gives time to properly review and process early bird declarations, confirming the accuracy of legitimate declarations and filtering out fraudulent declarations. The best way to track refund progress is My Alabama Taxes (myalabamataxes.alabama.gov). It is available 24 hours a day, seven days a week. Those taxpayers who do not have internet access can track their refund progress by calling our 24-hour refund hotline at 1-855-894-7391 or our daily refund status hotline at 334-309-2612.

For more information on individual income tax, see https://revenue.alabama.gov/individual-corporate/.

Source