Tax Day is just around the corner. This year, individual tax returns are due on Tuesday, April 15th. If you haven’t filed your taxes yet, it’s time to act fast. Missing the tax deadline or failing to file for a tax extension by April 15th could lead to costly penalty fees. Even worse, delaying your filing could put your tax refund at risk if one is owed to you. Here are some tips to help you file your taxes on time.
1. Review Your Filing Options
Consider the available methods for filing your tax return:
2. Claim All Eligible Tax Deductions and Credits
Maximize your refund by ensuring you’ve claimed all applicable deductions and credits. Common ones include charitable contributions, childcare expenses, and education-related deductions. Visit the IRS website for a comprehensive list of credits and deductible expenses.
3. Double-Check Your Return Before Submitting
Avoid errors that could lead to processing delays or penalties. Verify all personal information, income amounts, and deductions for accuracy, and keep copies of all filed tax documents for at least three years. It’s good to have them for reference, or in the event of an audit.
4. File for a Tax Extension If Necessary
If you will be unable to meet this year’s April 15th tax deadline, submit IRS Form 4868 to request an extension. A tax return extension gives you an additional six months to file your taxes, but it’s important to remember that a filing extension does not grant you more time to pay any taxes owed. If you anticipate a tax payment instead of a refund, it’s important to make an estimated payment by the April 15th deadline to avoid penalties.
5. Adjust Your Tax Withholdings to Avoid Future Tax Liabilities
If you end up owing taxes this year, take proactive steps now to prevent the same issue next year. Start by updating your tax withholdings using IRS Form W-4 through your employer. Increasing the amount withheld from your paychecks will reduce your likelihood of owing taxes when you file your next return. To determine your optimal withholding amount, use the IRS Tax Withholding Estimator or consult with a tax professional. Making these adjustments now will ensure you’re better prepared for next year’s tax season.
6. Track and Plan Your Tax Refund
If you're expecting a refund, track its status online using the IRS’ "Where's My Refund?" tool. Once you receive your tax refund, put it toward improving your financial future. Consider using it to start an emergency fund or pay off credit card debt. Another option is to deposit it in a high-interest savings account to grow your money faster. High-yield savings accounts offer better interest rates than traditional savings accounts, helping you build a stronger financial future.
Filing Your Tax Return Doesn’t Have To Be Stressful – Even at the Last Minute
By reviewing your options, claiming eligible deductions, and double-checking your work, you can file confidently and avoid penalties. Remember though, if you’re struggling to meet the April 15th tax deadline, filing for an extension is better than rushing and making errors on your return. Take action now and set yourself up for a more seamless tax season.
1. Review Your Filing Options
Consider the available methods for filing your tax return:
- Use Tax Software: Platforms like TurboTax and H&R Block provide fast e-filing, with features to streamline the process and ensure accuracy. Compare features and pricing to find the right tool for your specific needs, such as support for self-employment income or investment gains.
- File Directly with the IRS: The IRS offers a Free File program for individuals with an Adjusted Gross Income (AGI) of $84,000 or less in the current tax year. Free File offers access to online tax preparation software at no cost. If you are ineligible for the Free File program, you may qualify for the IRS’ Direct File program. Direct File is currently available in 25 states and provides guided online help and access to live support. It also allows you to file your taxes from a smartphone, tablet, or computer. To see if Direct File is an option for you, visit https://directfile.irs.gov/.
2. Claim All Eligible Tax Deductions and Credits
Maximize your refund by ensuring you’ve claimed all applicable deductions and credits. Common ones include charitable contributions, childcare expenses, and education-related deductions. Visit the IRS website for a comprehensive list of credits and deductible expenses.
3. Double-Check Your Return Before Submitting
Avoid errors that could lead to processing delays or penalties. Verify all personal information, income amounts, and deductions for accuracy, and keep copies of all filed tax documents for at least three years. It’s good to have them for reference, or in the event of an audit.
4. File for a Tax Extension If Necessary
If you will be unable to meet this year’s April 15th tax deadline, submit IRS Form 4868 to request an extension. A tax return extension gives you an additional six months to file your taxes, but it’s important to remember that a filing extension does not grant you more time to pay any taxes owed. If you anticipate a tax payment instead of a refund, it’s important to make an estimated payment by the April 15th deadline to avoid penalties.
5. Adjust Your Tax Withholdings to Avoid Future Tax Liabilities
If you end up owing taxes this year, take proactive steps now to prevent the same issue next year. Start by updating your tax withholdings using IRS Form W-4 through your employer. Increasing the amount withheld from your paychecks will reduce your likelihood of owing taxes when you file your next return. To determine your optimal withholding amount, use the IRS Tax Withholding Estimator or consult with a tax professional. Making these adjustments now will ensure you’re better prepared for next year’s tax season.
6. Track and Plan Your Tax Refund
If you're expecting a refund, track its status online using the IRS’ "Where's My Refund?" tool. Once you receive your tax refund, put it toward improving your financial future. Consider using it to start an emergency fund or pay off credit card debt. Another option is to deposit it in a high-interest savings account to grow your money faster. High-yield savings accounts offer better interest rates than traditional savings accounts, helping you build a stronger financial future.
Filing Your Tax Return Doesn’t Have To Be Stressful – Even at the Last Minute
By reviewing your options, claiming eligible deductions, and double-checking your work, you can file confidently and avoid penalties. Remember though, if you’re struggling to meet the April 15th tax deadline, filing for an extension is better than rushing and making errors on your return. Take action now and set yourself up for a more seamless tax season.