3 Last Minute Tax Tips for Extension Filers
If you didn’t have time to file by the April tax deadline, chances are you filed for an extension. Even though you filed an extension, does it feel like that October tax extension deadline came out of nowhere?
Time can get away from us and even those extra six months can fly by and leave you scrambling come October. If so, here are 3 last minute tax tips to help take some of the stress out of this tax deadline.
1. File Electronically
The last thing you want to be bothered with on the tax extension deadline is finding time to get to the post office and mailing out your tax return. Your life is busy enough, and if something comes up at work and you can’t get your tax return sent out in time you’re potentially setting yourself up for additional penalties.
So, stick to filing electronically so that you know your return gets into the hands of the IRS before the deadline passes. Luckily, if you are using TurboTax, you can e-file your tax return any time up until the October 15th deadline.
2. Review Carefully
Since you are not allowed any additional extensions on personal income taxes past the October 15th deadline, you’ll want to spend the time to make sure you’ve got everything correct on the return. Even if you find yourself rushing on the tax deadline day, it’s a good idea to make sure it’s accurate to avoid any further issues with the IRS.
Go through your tax return and double check all of the names, social security numbers, and wages reported from your W-2s and 1099s. Then be sure to go over all of your potential tax deductions and check that you’ve included everything and the numbers are correct.
3. Get Organized
If going through the extension process stressed you out, then now is a good time to get organized so that it doesn’t happen next year. By the time the October 15th tax deadline passes there’s less than three months until the close of the current tax year. That leaves little time to get things together, but if you take the time to start now, you’ll find that you probably won’t need to rush around in the spring and won’t need to file an extension.
Start by gathering any expenses or deductions from the past year. This is especially important if you’re self-employed and have a lot of expenses to track. By getting those items gathered and put aside today, you won’t need to dig for them in the spring.
Finally, start thinking about year-end tax moves you can make that will reduce your tax bill. This may include making IRA contributions or scheduling January’s mortgage payment to come out of your account at the end of December. Preparing for these tax moves today can help lower your tax bill tomorrow.