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Check tax changes at IRS Web site

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WASHINGTON — The Internal Revenue Service has revamped its Web site and enhanced other electronic services to make it easier for the tens of millions of Americans receiving their tax packages for the 2004 tax season.

At www.IRS.gov, taxpayers can click on "1040 Central" to find information about:

• What's new this year, which highlights the latest tax-law changes, tax tips, news releases and frequently asked questions.

• Getting ready to file, which provides links to information about the Earned Income Tax Credit, the 2003 Advance Child Tax Credit and commonly used forms and tax instructions.

• Filing your return, which provides links to IRS e-file and Free File, the free service provided by IRS partners in the tax software preparation industry.

Help at tax time Beginning this week, look in the Sunday Business section for income-tax-filing tips through April 11.

• After filing, which includes the interactive Where's My Refund? that allows taxpayers to track the status of their refund.

• More assistance, which helps taxpayers find additional information sources.

The IRS expects to process 131 million individual tax returns this year, approximately the same as last year. More than 53 million taxpayers are expected to file their returns electronically.

The 1040 Central page also can help taxpayers avoid errors when it comes to the Advance Child Tax Credit that 20 million families received last year. The child tax credit increased to $1,000 from $600. Taxpayers must reduce their 2003 claimed credit by the amount of the advance check they received last year. The amount of the advance payment was shown on Notice 1319 mailed to eligible taxpayers last year; taxpayers also can check the amount of their Advance Child Tax Credit at 1040 Central.

For 2003, the tax law changes include:

• Expanded 10 percent and 15 percent income-tax brackets.

• Lowered tax rates to 25 percent, 28 percent, 33 percent and 35 percent.

• Increased standard deduction to $4,750 for single taxpayers, $7,000 for head of household and $9,500 for couples filing as married filing jointly.

• Increased Child Tax Credit to $1,000 per qualified child from $600.

• Tax relief for military families.

• Elimination of the so-called "marriage penalty" because of the increase in the standard deduction for couples whose filing status is married filing jointly.

• A new Schedule D to use as new rates take effect for capital gains.

— Internal Revenue Service

Copyright © 2004 The Seattle Times Company