(Washington, DC) - The DC Office of Tax and Revenue today kicked off the 2009 tax filing season and highlighted two key points for District taxpayers: File electronically to receive income tax refunds quickly and be alert to a number of new and increased tax deductions that have been added, which may maximize their refunds.

The increased deductions include personal exemptions, standard deductions, real property, disaster loss and college savings.

“Compared to last year, the District saw a 12.5 percent increase in the number of individual income tax returns filed electronically,” said Stephen M. Cordi, deputy chief financial officer for tax and revenue. “One of the benefits of online filing is getting refunds into the hands of taxpayers much faster than those who file on paper.”

E-File
Taxpayers who take advantage of the e-File options and request direct deposit will get their refunds in a few days, compared to weeks for individuals who file a paper return with a paper check.

OTR offers two electronic filing methods:

• Free electronic Taxpayer Service Center (eTSC), in which taxpayers can file and pay their taxes online and check the status of their refund; and
• Federal/State e-File program, which allows taxpayers to transmit both their DC and federal returns electronically, using an approved commercial software program, either from their home computer or with the assistance of a tax practitioner.

Taxpayers who cannot meet the April 15, 2009 deadline can file form FR-127 (Extension of Time to File Income Tax Return) online and pay any amount due. In addition, taxpayers can also utilize the online service to file form D-40ES (Estimated Payment for Individual Income Tax). 

Maximizing Refunds
This filing season, there are a number of new or increased tax deductions available.  Some of the key changes include:

• Personal Exemption - The personal exemption has been increased from $1,500 to $1,675 for each dependent of the taxpayer whose gross income is less than $1,000 or who is a child of the taxpayer and has not reached the age of 19 or is a student.
• Standard Deduction - The standard deduction has increased from $2,500 to $4,000 for a single individual, head of household, surviving spouse, or married person filing jointly. For a married person filing separately or a registered domestic partner, the standard deduction has increased from $1,000 to $2,000.
• Real Property Tax Deduction: Additional Increase in Standard Deduction - As a result of changes made to federal tax law, non-itemizers (i.e., those who take the standard deduction) may now increase the standard deduction by up to $500 (if single, head of household, married filing separately, or registered domestic partner) and up to $1,000 (if filing jointly as married or registered domestic partners), if they took the real property tax deduction on their federal tax return as an increase to the standard deduction.
• Disaster Loss Deduction: Additional Increase in Standard Deduction - Non-itemizers (i.e., those who take the standard deduction) may now increase the standard deduction by the amount of a “net disaster loss,” if they took the disaster loss deduction on their federal tax return as an increase to the standard deduction.
• College Savings Program - The maximum deduction for contributions to accounts under the DC College Savings Program has increased from $3,000 to $4,000 for a taxpayer who files as single, head of household, married filing separately, or registered domestic partner. If taxpayers file jointly or as registered domestic partners, then the maximum deduction for contributions to all accounts (must be at least two accounts) is increased from $6,000 to $8,000.

Federal Forms-Paper Filers
New this year, taxpayers filing DC individual income tax returns on paper should no longer include federal returns or federal schedules with their DC returns.

Free Tax Prep Assistance
Customer service representatives in the walk-in center will prepare District individual income tax returns at no cost for anyone requesting the service. Taxpayers must bring a copy of their completed federal tax return, applicable schedules, and W-2s or statements showing DC withholdings.

Customer Service Centers
Taxpayers requesting assistance may visit OTR’s Walk-In Center at 941 North Capitol Street, NE, on the first floor, 8:15 am to 5:30 pm Monday through Friday.  They may also call (202) 727-4TAX (4829).