We hate to spoil your new year this early in 1997, but the IRS and the state Department of Taxation are already sending out reminders of what's to come in three months. Ready or not, here comes
the taxman: IRS and stateThe IRS says you can forget the April mail madness by filing your returns by phone. It has sent out more than 22 million TeleFile tax packages, containing a worksheet instead of a tax form, to taxpayers - 113,535 of them in Hawaii.
TeleFile allows taxpayers to file their returns by making a free, 10-minute call on a touch-tone phone, 24 hours a day.
Last year, nearly 3 million people used TeleFile, 9,437 of them in Hawaii, the IRS said.
The phone system is supposed to save time and money for both the IRS and taxpayers because many errors are eliminated and refunds are sent more speedily.
Refunds can be deposited directly into bank accounts.
The catch: To be eligible, you must have no dependents; taxable income of less than $50,000 from wages, interest or unemployment compensation; and the same mailing address as last year.
Those who receive TeleFile packages but cannot file by phone can get the regular tax forms/instructions through: 1) the IRS Internet Web Site at http://www.irs.ustreas.gov; 2) telephone at 1-800-829-3676; or 3) participating banks, post offices and libraries.
Meanwhile, most of you should begin receiving state income tax forms and instruction packets this week, said June Yamamoto, chief of the Taxpayer Services Branch.
You will receive a packet for the same form you filed in 1996 unless you moved, did not file a return last year, filed late, or checked the box on the 1995 return requesting only a mailing label.
A significant change this year is that all entries must be rounded to the nearest dollar. And don't expect the general income tax credit this time around. The credit is constitutionally mandated when the state general fund balance exceeds 5 percent of the general fund revenue for two consecutive fiscal years. Hawaii taxpayers got a $1 credit in 1995.
Yet another change is that Hawaii residents who file Form N-11 are no longer required to attach a copy of the first page of their federal return.
All district tax offices can handle questions and provide tax forms and other services, from 7:45 a.m. to 4:30 p.m., Mondays through Fridays. The Oahu office is in the Keelikolani Building, 830 Punchbowl St. For tax questions, call 587-6515.
Free tax preparation for those filing basic 1996 Hawaii individual income tax returns is available at the Oahu office, 8 a.m. to noon through April 21.
Those needing tax forms can also call the department's 24-hour code-a-phone on Oahu at 587-7572 or toll-free from the neighbor islands at 1-800-222-7572. Forms are also available on the department's Internet site at http://www.hawaii.gov/tax/tax.html.