Is Your Tax Refund Safe?
Jackie here. Tax season is upon us and for some people that means returns are around the corner. While you’re hard at work preparing your tax documents, thieves are busy too, filing returns and claiming refunds that aren’t theirs. How can you protect your refund this tax season? Here are some tips from Time to get you started.
File Quickly– If you haven’t yet started on your taxes, start as soon as you can. Filing quickly can protect your refund by ensuring that you file under your identity before thieves do. Waiting until the last minute to file can greatly increase your risk of tax identity theft.
Minimize Your Risk– How big is your refund? If you’re getting back thousands this year, you might want to change your withholding to reduce the size of your refund. This won’t protect you from tax ID theft, but will minimize the amount of money that you have at risk should you fall victim.
Protect Your Information– All thieves need to file a fraudulent refund in your name is your birthdate and SSN. Protect these numbers. When possible, have tax forms (like W-2s, 1099s, mortgage interest statements) sent to you electronically. At the very least, bring your mail in as soon as possible; thieves often steal tax forms out of mailboxes at this time of the year.
Get a PIN (when it becomes available)– The IRS is launching a pilot program where taxpayers can obtain a personal identification number (PIN) to protect their identities. This special number must be included on all tax documents. Right now the service is only available to those that filed a return from Washington DC, Florida, or Georgia last year or those that were victims of tax ID theft. Get your PIN here if you qualify. (Once you opt in, you can’t opt out.)
Don’t Use Public Wi-Fi to File– If you file online, use a secure computer and a secure network. Never use public Wi-Fi to file your taxes.
Avoid Scams– Tax themed scams are rampant this time of the year. Remember, the IRS isn’t going to call you on the phone – they communicate via snail mail. Be very careful with the sharing of personal information to keep your tax refund safe.
For more tips about protecting your refund, check out this article from Time Magazine.