Several times in the last few years, living in New Hampshire has provided me the opportunity to dread being without electricity – or worse. From the well-publicized Superstorm Sandy (which largely stayed to our south) to Hurricane Irene (which took a shocking detour to Vermont at the last moment), we’ve certainly been spared the brunt of the worst recent storms.

Still, we’ve had our share, including the “Great Ice Storm” and the “Mother’s Day Flood,” not to mention several nor’easters of varying intensity each winter.

Despite that declaration, I’m probably not as prepared – from a record-keeping standpoint – as I should be.  As I now recognize that crossing my fingers and hoping for the best isn’t a compelling strategy, I’ll share the steps I plan to take to rectify my situation.  Also, I’ll provide some thoughts for you to consider if you’d like to increase the odds you’ll be prepared if a severe storm or other calamity were to come your way.

1.  A “Grab and Go” Folder

Sometimes you receive warning about a potential disaster. Other times, you don’t. Sometimes a disaster means you should huddle down and absolutely not leave the house. Other times, an impending storm can mean you should get out and get out quickly.

To increase my preparedness for a quick evacuation, I am going to prepare a folder that contains copies of the following key items:

• Homeowner’s insurance policy
• Auto insurance policies
• My and my wife’s driver’s licenses (front and back)
• Social Security cards for the entire family
• Credit cards (front and back)
• Key phone numbers, including those of friends who are not in the immediate neighborhood yet who would probably be close enough to be able to help us. Also, the phone numbers of family who live in different areas of the country and are unlikely to be affected by whatever is ailing New Hampshire.
• A list of additional things to quickly add to the “grab and go” folder if I need to actually grab and go with this folder. On this list will be my checkbooks and the small amount of cash I typically keep in the house.

2.  Safe Deposit Box

I’ll rent a safe deposit box too. My first step in doing so will be to decide where.  While I could choose the nearest branch of my primary local bank (which is only two miles away), doing so increases the odds that if something were to happen at my home, there might be a big problem at my bank too.  I’ll probably pick the branch closer to my office (15 miles away).

Once I open my safe deposit box, I’ll put copies of the following items inside it:

• Birth certificates
• Marriage license
• Passports
• Home deed
• Car titles

3.  Digital Back Up

In addition to the paper back-ups, I’ll make a digital back up by scanning or otherwise typing the following information into a Word file or PDF:

• All of the items that will be in my grab and go file and in my safe deposit box
• Financial account numbers (e.g., 401(k), IRA, brokerage, bank accounts, etc.) and related contact information
• Tax Returns
• Our wills and other estate planning documents (e.g., powers of attorney)

I’ll save this digital backup in a few places.  I’ll put it in my Dropbox account so it will accessible by me anywhere there is an internet connection.  I’ll also put it on a zip disc that I will keep in the safe deposit box.  Last, I’ll send a digital copy to my mother in Florida.

Make a Movie

We will also need to take a video of our home and its contents so that we have proof of what we own should there be a sizable homeowner’s insurance claim.  I’ll store that video in the safe deposit box.  The stills I take of the household items I’ll put in my Dropbox.

It might sound like a lot, but for those who were unable to access their money or easily find the contact information of their insurance carrier after one of the big recent storms, doing so would have been a good investment of time.  Keeping all of the above updated won’t be too time consuming either, so I view this as a sizable one-time project followed by less than 30 minutes a year of maintenance.

What steps did you take to prepare for the worst that I have not discussed above? Do you feel prepared?

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If the IRS sends you a tax bill instead of a refund check don’t panic, there are several ways to manage this and it does not have to be a nightmare for your personal finances.

Sometimes people pay fewer taxes during the year than they are supposed to and that is why the IRS comes back with a bill, but don’t panic. A bill from the IRS does not have to be scary. You just have to manage it like any other part of your finances. Taxpayers have several options. Consider the following:

-You can pay the taxes with a credit card. According to credit card experts such as Cardhub.com, in the current credit environment people with a higher than average credit score could get a credit card with 0% interest rate for more than a year and hundreds of dollars in rewards if they pick the right card.

-It is also possible to call the IRS and establish a payment plan that allows you to pay the tax bill over a period of time up to 6 years. However, the IRS will charge an annual 3% rate for financing the debt. Though 3% is a low rate, it is not better than the 0% deal you can get with a good reward credit card if you have a great credit score and can get approved for one.

-Getting a reward card can be a strategic move for your finances. A reward card is not the usual credit card most people have in their wallets. A reward card can become a cash generator for you if you manage to use it the right way.

-After paying the tax bill with the card, focus only on paying the balance as fast as possible or within the 0% introductory period the card provides. That way you won’t pay any financing charges.

-Once the tax bill is paid and you have a credit card ready to use for other expenses, change your behavior and whatever you spend during the month pay it in full at the end of each period. That way you won’t pay finance charges and you will also accumulate miles or rewards. You can use the rewards in many ways such as purchasing from your favorite stores or to pay for airline tickets or hotels.

-Credit Cards with rewards can generate more benefits than costs.

If you don’t have the credit score to get a reward card ,the best way to pay the tax bill is by establishing a payment plan with the IRS. You just have to wait until you get the bill in the mail and call the IRS to negotiate a monthly payment. The IRS is quite flexible as they want you to pay. You may have to pay a fee to establish the plan and start paying the next month.

Contribute More to Your 401(k)

Did you know you can do yourself a (double) favor by contributing more to your company’s 401(k)? How? When you opt in and have a portion of your income set aside for the account, it’s done pre-tax. That means you’re lowering your taxable income for the year while putting money aside for your retirement. It’s a win-win.

If you haven’t contributed enough to get a full match from your employer, see if you can at least increase to that amount. That’s extra money that’s free and can go a long way towards your retirement with the power of compound interest.

Take Advantage of Flexible Spending Plans and Health Savings Plans

If your employer offers a Flexible Spending Plan or a Health Savings Plan and you’ve signed up for it, make sure you’re taking full advantage of it. They are considered tax favored plans because your contributions are pre-taxed- this allows you to get reimbursed for medical expenses while lowering your taxable income. Keep good records and all your receipts. Check to make sure you’re not wasting any of your contributions by making sure you have qualifying medical expenses.

While most jobs having open enrollment in the fall, you can still keep track of your medical expenses through out this year so you can plan for the next year.

Adjust Your Withholding on Your Paychecks

Depending on your needs and particular situation, you have some choice with your withholding on your paychecks. If you received a big tax refund last year and expect your finances to remain the same this year, you may elect to adjust your W-4 and have less taken out of your paychecks. That means getting a smaller tax refund next year, but having a small bump in your paychecks through out the year.

If you’re expecting a major event this year such as getting married or becoming parents, then you should consider sitting down with your Human Resources Department to update your withholdings.

Thoughts on Preparing for Taxes

I’d love to hear from you about your taxes and finances. How was this past tax season for you? What plans do you have for the rest of 2013?

I can’t list all of the bizarre taxes, but I want to list a few of my favorites.

Vending Machine Tax

I can see how some taxes are used to encourage or discourage certain behaviors. Some states have high taxes on goods like cigarettes that discourage some from smoking. California may have had a similar thought with their tax trying to get residents to  choose fresh foods instead of grabbing snacks at the vending machine. Fresh fruits are exempt from the tax, but if you get them from a vending machine, the food is taxed 33%. When you want fresh fruit and you live in California, go for the fruit stand instead and save yourself some money.

Bagel Prep Tax

Speaking of food, I found a NY tax on the books that charges customers about 8 cents if they have their bagel sliced or prepared. A Bruegger’s Bagel owner didn’t find out he was out of compliance until after an audit. Besides having to pay the taxes, his customer were very upset about the increase in price.

Tattoo Tax

Moving off of food, I found a tax that can hit lots of people that want to change their looks. If you live in Arkansas and you’re planning on having electrolysis to remove unwanted hair, getting a tattoo, or even just getting your ears pierced, then be prepared to pay a bit more taxes. The state charges a 6% tax on these services.

Durham’s Pet Tax

This tax isn’t bizarre per se, but it’s a different way to handle a typical county fee. As a Raleigh resident  I was relieved to find out that we avoided a pet tax that Durham residents have to pay.  If you own a cat or a dog that was spayed or neutered, you have to pay $10/year as part of your personal property tax. If you haven’t had your pet fixed, it will cost you $75. Before it was a tax, the county’s animal control sent out bills to collect the fees. One reason the switch was made was to increase payment compliance.

Thoughts on Bizarre Taxes

I’d love to hear from you about bizarre taxes. What is the weirdest tax you’ve heard about? Have you paid for a bizarre tax? What was it for?

Fortunately, you’re not alone. This is a scenario that affects many people and the IRS understands that sometimes reality interferes with your ability to pay. There are options available to you if you are unable to pay and many are quite reasonable. We’ll go through some of the best options if you can’t pay.

Installment Agreement

The IRS offers installment plans that can help you break up what you owe into more manageable payments over time. You can apply online if owe less than $50,000 in combined taxes, penalties, and interest. You specify how much you can pay, how often you can make payments, and specify all that on an application. The IRS will now allow up to 6 years to pay your tax liability if you’re on an installment agreement.  There’s an application fee involved and the interest is manageable (especially since rates are low right now) but the IRS still has to approve your application. Not everyone is approved for this.

The whole process can be completed fairly quickly if you have your Caller ID number (from the top of your tax due notice), adjusted gross income, bank address, and employer address. You will have to pay the aforementioned loan fee, and pay interest, but it’s generally much less than what you would pay if you charged your tax bill to a credit card. Even if you end up with the highest fee schedule and interest, it’ll be much less than most credit card companies, so it’s a better choice than paying with plastic.

If you’re seriously considering this, the fees are $52 for a direct debit agreement ($105 for the standard agreement or payroll deduction). It can be reduced to $43 based on income, that’s the cheapest option. It’s worth noting that many states also have installment payment options that you can take advantage of. Check with your state comptroller’s office, or tax division, and you can find out more about your options.

Request “Additional Time To Pay”

In same cases, if you can describe your situation, and if you are able to pay within 60 to 120 days, you might be able to get a little more time to make your tax payment. Call 800.829.1040 to speak to someone about this option or apply through the Online Payment Agreement application. If you can pay your tax in full within a relatively short period of time, there is a chance that you can pay less in interest and penalties.

Do not confuse this option with an “extension,” which is simply a request for additional time to file your return. Those who request an extension still have to pay any tax liability on tax day, they don’t get additional time to pay their taxes.

Offer in Compromise

You can actually offer to settle your tax obligation with the IRS by paying a percentage of what you owe. If you are having trouble paying due to income or other problems, the IRS might accept an Offer in Compromise.  The IRS usually only accepts if the offer is reasonable – and if the likelihood of collecting the whole amount in a “reasonable” period of time is rather slim.

The IRS is more flexible than you might think, as long as you are willing to meet your obligation, and can show that you need the help. Contact the IRS to work out an arrangement that makes paying your taxes a little more manageable.

If you have questions, don’t forget TurboTax has CPAs, IRS enrolled agents, and tax attorneys available to answer your questions year round.

I didn’t think so.  Nevertheless, here are two key strategies to consider throughout the rest of the year in order to make next year’s filing simpler and potentially less costly.

Stay Organized

One of the more annoying parts of preparing to file your taxes is trying to locate your necessary documents and receipts received throughout the year, but if you stay organized you will make your life much easier.

Some people can spend a bunch of time just assembling all of the tax forms they receive in January or February (e.g., W-2s, 1098s, 1099s, etc.).  But that’s nothing compared to the hours they spend assembling information that they received throughout the previous year.  Such document sleuthing can include anything from discovering receipts for charitable donations and business expenses to finding the cost basis for investments they sold.

Of course, there’s an easier way: don’t wait until April to dig up all of your paperwork.  For example, when you make a donation of clothing to a local charity, don’t take the receipt and leave it on the desk somewhere to contemplate later.  Instead, fill it out right away— list what you donated and its approximate value. Put the date on it.  Put it in a folder labeled “Taxes 2013.”

With business expenses, write down the business purpose on the actual receipt right away.   For business meals, I suggest doing so while still at the restaurant.  When you fill in the tip, just write the purpose at the top of the customer copy of the receipt.  Bring it home and put it in that same “Taxes 2013” folder.  To make your life much easier if you’re a business owner, enter tax-related transactions in your accounting software as they occur.

Monitor Your Payments

As a taxpayer, your goal is to pay enough taxes throughout the year to avoid an underpayment penalty but not so much that you end up providing a sizable interest-free loan to the government.  To do so, you need to ensure that you pay at least the lesser of the following two numbers during the course of the year:

• 100% of the taxes you owed for the previous year (110% if your Adjusted Gross Income was $150,000 or greater)
• 90% of the taxes you will owe for the current tax year

Note that the phrase, “taxes you owe,” in the above paragraph is not the amount you might pay with your tax return; it refers to the total amount of federal income tax paid throughout the year.

What’s the key takeaway?  Many people receive the majority of their income as employees and have it reported to them on Form W2.  Furthermore, most people’s income does not vary greatly from year to year.   If that description sounds like you, consider your last tax return.   If you received a sizable refund, consider lowering your withholding by increasing your allowances.

To do so, simply re-file Form W4 with your payroll department. You can do so anytime throughout the year and use TurboTax W-4 calculator to estimate your exemptions.    When you change your allowances in this way, your next year’s income tax refund will decrease or possibly be eliminated.  On the other hand, implementing this strategy means you will receive an increase in net pay right away.

To take it to the next level, use some of your new money to increase your IRA or 401(k) savings.  Doing so not only prepares you for your future retirement, but also lowers your taxes next April.

Don’t have the money to pay taxes? File an extension. Still trying to get everything in order? File an extension.

However, the tax extension isn’t exactly what it sounds like, and it doesn’t really “cure” anything. Here are 5 important facts about filing a tax extension that you need to know before you file.

1. An Extension Isn’t Really an Extension

The word “extension” is somewhat misleading. When you file a tax extension, you’ll get six extra months to turn in your tax paperwork to the IRS. Sounds reasonable, but keep reading.

The keyword here is “paperwork”. A tax extension doesn’t extend the deadline to pay any taxes that you may owe to the IRS.

Sound backwards? Not what you expected? Welcome to enlightenment my friend.

If you file an extension, you will still have to pay any due taxes by the normal tax deadline. So before you file an extension assuming you’ve got 6 extra months to pay your taxes, think again.

2. The Penalty is in the Eye of the Filer

In sports, penalties are up to the discretion of the referee. When it comes to tax time, the IRS wears the zebra stripes.

Although technically you’re not penalized or charged a fee for submitting the tax extension paperwork – Form 4868 – there could still be a downside to filing an extension.

If you file an extension but you’ve got a good grasp on your situation and you are pretty sure a tax refund is in your future this year, then you really have nothing to worry about. The government will hold onto your refund until you get your paperwork sorted out during your extension period.

Once you file, you’ll get your refund.

But the rules change a bit if you end up owing taxes to the IRS. If you file an extension but you choose not to pay estimated taxes by the tax deadline, the IRS will charge you interest on the taxes that you owe them.

Feels like a penalty to me.

3. You Can Request An Extension Using TurboTax

Many people still believe that the only way to file for an extension is the old-school paperwork method. Not so anymore.

The IRS will gladly accept your tax extension form via tax software and the world wide web. Simply use your tax software to e-file your Form 4868. The IRS will acknowledge your request as long as you file by the tax deadline.

4. Your Reasons Usually Don’t Outweigh the Benefits

Unless there are certain pieces of paperwork you’re waiting to arrive in the mail, an extension probably won’t deliver the benefits you might expect.

If you’ve procrastinated during tax season, the solution isn’t an extension. You could end up costing yourself more money and more frustration by asking for more time.

The best piece of advice is to buckle down, stare your tax paperwork in the face, and get it done on time.

5. No Extension for IRA Contributions

Lastly, if you think you’ve found an IRA-contribution loophole in the tax process, think again. Requesting a tax extension doesn’t have any impact on the deadline for contributing to your Traditional or Roth IRAs.

Ignoring the IRS won’t make them go away. The IRS can assess a penalty if you fail to file, fail to pay or both. Since the penalty for failing to file is usually greater than the penalty for failure to pay, here’s my number one tip for you: file your tax return by April 15, even if you can’t pay the tax. At least that way you aren’t doubling up on penalties you face.

Here are some more facts you should know about possible IRS penalties.

Filing late can increase the amount you owe by 25%. The penalty for filing late is usually 5% of the unpaid taxes for each month your return is late. This penalty will not exceed 25% of your unpaid taxes. This penalty is imposed even if your return is just one day late. So if you file on April 16 rather than April 15, you’ll owe 5% more than you would otherwise.

Even if you don’t owe tax, there’s still a penalty for filing late. If you file your return more than 60 days after the due date, you’ll have to pay the minimum penalty, which is the smaller of $135 or 100% of the unpaid tax. That means you’ll owe the IRS $135 for filing late, even if you don’t owe tax or expect to get a refund.

 Paying late is costly as well. Not paying your taxes by the due date will garner you a failure-to-pay penalty of ½ of 1% of your unpaid taxes for each month or part of a month after the due date that the taxes are not paid. This penalty can be as much as 25% of your unpaid taxes. If both the failure-to-file penalty and the failure-to-pay penalty apply in any month, the 5% failure-to-file penalty is reduced by the failure-to-pay penalty. So let’s see, that means that for the first five months you are delinquent, you’ll owe 25%.

Filing an extension may help. If you file for an extension to file until October 15, and you paid at least 90% of your tax by April 15, you won’t have to pay a penalty for failure to pay the remaining balance, as long as your taxes are paid in full by the extended due date.

Tell the IRS why you are late. If you have a really good excuse for why you couldn’t file or pay by April 15, you may not have to face a failure-to-file or failure-to-pay penalty. So if you can show that you failed to file or pay on time because of reasonable cause and not because of willful neglect, let the IRS know.

So Even if you can’t pay all the taxes you owe, you should still file your tax return on time and pay as much as you can, then explore other payment options.

A simple mistake can delay IRS processing of your tax return.   That’s not the end of the world but is certainly something we should avoid just by double-checking the details.

Here some small pieces of advice for the last minute taxpayers this year:

File electronically:   TurboTax has free e-file available to all taxpayers. Many can e-file their federal individual tax returns for free. According to the IRS,  last year nearly 143 million taxpayers opted for the IRS e-file to submit their individual tax returns.

Check the identification numbers: Carefully check identification numbers-usually Social Security numbers- for each person listed. This includes spouse, dependents, and persons listed in relation to claims for the Child and Dependent Care Credit or Earned Income Tax Credit. Missing, incorrect or illegible Social Security numbers can delay or reduce your tax refund.

Double-check your figures: Before sending the return in the mail or before submitting  your tax return online by e-file, double-check  entries from any receipts.

Send the return to the right address: If you are mailing the return, find the correct mailing address. The addresses can vary depending on state or if it is an individual or a corporation. There are also differences if it is an amended return or an extension. Make sure about the right place to send your tax return.

Pay electronically: The electronic payment is another option. You can authorize an electronic funds withdrawal or use a credit or a debit card.

Follow instructions to send the payment: people sending a payment should make the check payable to “United States Treasury” and should enclose it with, but not attached it to, the tax return or the form 1040-V, payment voucher, if used. The checks should include the Social Security number of the person listed first on the return, daytime phone number, the tax year and the type of form filed.

Still Have Questions? Get Help: TurboTax has CPAs, IRS enrolled agents, and tax attorneys standing by ready to help.  Only TurboTax lets you talk to tax experts while you’re preparing your tax return, free.

These easy last minute steps will help you make the tax deadline.

Si el Servicio de Impuestos Internos (IRS) le envía una cuenta en vez de un cheque de devolución, no entre en pánico. Hay varias maneras de manejar esta situación y no es necesariamente una pesadilla para sus finanzas personales.

Algunas veces las personas pagan menos impuestos durante el año de lo que deberían y esa es la razón por la cual llega una cuenta de cobro del IRS. Una cuenta de cobro del IRS no tiene porque asustar. Usted solo tiene que manejar ese asunto como cualquier otro en sus finanzas. Los contribuyentes tienen varias opciones. Tenga en cuenta lo siguiente:

-Usted puede pagar sus impuestos con tarjeta de crédito: De acuerdo con expertos en tarjetas de crédito como Cardhub.com, en el ambiente de crédito actual, las personas con calificación de crédito superior al promedio podrían obtener una tarjeta de crédito con una tasa de interés de 0% durante más de un año y cientos de dólares en premios si seleccionan la tarjeta correcta.

-También es posible llamar al IRS y establecer un plan de pago que le permita pagar la cuenta de impuestos durante un periodo de hasta 6 años. Sin embargo, el IRS le cobrará una tasa de interés anual del 3% por financiar la deuda. Aunque 3% es una tasa baja, no es mejor que la tasa de 0% que puede tener con una tarjeta reward o de premios si es que usted tiene la calificación de crédito que le permita obtener una.

-Obtener una tarjeta de premios puede ser una decisión estratégica para sus finanzas. Una tarjeta de premios (reward card) no es la tarjeta normal que la mayoría de la gente lleva en su billetera. Una tarjeta de premios puede convertirse en un generador de efectivo para usted si la maneja de la manera correcta.

-Después de pagar la cuenta de impuestos con la tarjeta de crédito, enfóquese solo en pagar el saldo de la deuda lo más rápido que pueda o dentro del tiempo de introducción en el que la tasa de interés es de 0%. De esta forma usted no pagará ningún costo de financiación.

-Una vez su cuenta de impuestos está pagada y usted tiene una tarjeta de crédito lista para usar e otros gastos, cambie su comportamiento y todo lo que gaste en el mes, páguelo por completo al final de cada periodo. De esta forma usted no pagará costos financieros y además acumulará premios en forma de millas o puntos. Usted pude usar esos premios para comprar sus productos favoritos o para viajes y hoteles.

-Las tarjetas de crédito con premios (reward card) pueden generar más beneficios que costos.

Si usted no tiene la calificación d crédito para obtener una tarjeta de crédito de premios, la mejor forma de pagar su deuda con e IRS es estableciendo un plan de pago. Solo tiene que esperar hasta que llegue por correo la cuenta de cobro del IRS y llamar al IRS para negociar su forma de pago mensual. El IRS es flexible porque lo que quiere es que los contribuyentes paguen. Seguramente tendrá que pagar un costo para establecer el plan de pago y empezar a pagar al mes siguiente.

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The 2013 tax season is coming to an end, and if you haven’t had the chance to get your tax return done, April 15, 2013 is the deadline to file individual tax returns. This is also the date that if you owe any money to good old IRS, you should write them a check by.

Here are 4 tips to keep in mind as the April 15^th date nears:

1.  Face your tax fears.  You will not know exactly how much you owe, or if you will get a tax refund, unless you actually sit down and prepare your tax return.  The first step to understanding your tax circumstances is to gather your tax information and log in to TurboTax to figure out your tax liability, if any.  You might be surprised to find many deductions and credits that you may qualify for to help you lower your tax burden and get tax refund.  In any case, knowing your tax “prognosis” will allow you to create a plan for the next step.

2.  If you can’t pay, still file on time.  Many taxpayers are overwhelmed because they owe money on their tax returns, but filing on time can be a very important step to limiting your tax liability. According to the IRS, the failure-to-file penalty is 5% of the tax owed for each month up to five months and can be as much as 25 percent of your unpaid taxes. You can use TurboTax to help you complete your tax return and file on time. The IRS also offers installment payment plans that you can establish to help you pay your taxes.  In order to pay the least possible amount, you should still file on time.

3.  If you can’t file on time, file an extension and pay on time.  A good amount of the penalties and interests that the IRS charges are based on the amount of money that you owe. An extension to file is not an extension to pay.  If you know a fair estimate of how much money you will owe in taxes but for some reason cannot file, you should still send in a check to the IRS by April 15^th along with an Automatic Extension to file.  The IRS says that as long as you pay 90% of your bill before April 15^th and the rest by the extended deadline, you will not face a failure-to-pay penalty.  In about 5 minutes TurboTax can help you get 6 more months to file your taxes (but not to pay).

4.  April 15^th, 2013 is also the deadline to claim a tax refund or file an amendment for your 2009 taxes. The end of the tax season is also a very important date for people that have not filed their tax returns and are also eligible for a tax refund. The IRS will only refund to individuals up to three years after the initial filing date. This means that if you have not filed your 2009 tax return and you are entitled to a refund, you must act quickly to make sure that the IRS can send you your hard earned tax refund.

April 15^th is also the deadline for any amendments needed for your 2009 tax returns; this deadline may be later if your income tax payment for the 2009 year occurred less than two years ago.  Unfortunately e-file is not available for prior year returns, but if you still need to prepare a 2011 or earlier tax return, you can purchase  prior-year software and install it on your computer.

It doesn’t matter what tax situation applies to you.  TurboTax has the tools and the help you need to make this income tax filing season a smooth process.  Don’t be afraid to ask questions and to use TurboTax to help you file your income tax return before it is too late.  Only TurboTax allows you to ask tax experts who are CPAs, IRS Enrolled Agents, and tax attorneys questions while you prepare your tax return, free.

If there’s no possible way you’ll make the tax deadline, as a last resort you can go online and file for an extension by April 15.

Filing an extension automatically pushes back the tax filing deadline to October 15, 2013 and protects you from the failure to file penalty which can grow at a rate of 5 percent of the amount due with your return for each month that you’re late, up to five months. For example, if you owe $2,500 and are three months late, the late-filing penalty would be $375.

Be aware that filing an extension is simply an extension of time to file, not an extension to pay. If you owe money for the 2012 tax year, you still need to pay your tax liability (within 90 percent accuracy) by April 15 to avoid paying interest and penalties on the amount owed.

Filing an extension does not stop you from incurring interest and paying a late payment penalty. You will incur interest at a rate determined quarterly based on the federal short-term rate, plus 3% compounded daily even if you do file an extension, which is why filing for an extension should not be thought of as a way to delay tax payments.

You will also have to pay a late payment penalty, which is one-half of one percent of tax owed each month or part of the month until tax is paid in full or 25% max is reached.

Even if you are unable to pay your tax liability in full, pay as much as you can with your tax return. You can even apply for an online payment agreement or Installment Agreement Request when you submit your tax return.

So, do you really need more time to file your taxes this year? Whether you’re filing your taxes up until 11:59 pm on April 15 or you need to file an extension, relax, we’ve got you covered. TurboTax makes it easy for you to finish filing your taxes, but if you need more time, you can file your extension online for free in minutes with TurboTax Easy Tax Extension. And, only TurboTax lets you talk to CPAs, IRS enrolled agents and tax attorneys while you prepare your tax return, free.

Michael Rubin CPA, CFP- Total Candor

My favorite end of season tax tip is the “once (again) over.”  While your tax return should be completely accurate throughout, you should double check a few things before you send your tax return to the IRS in a rush the night of the 15^th.   Make sure at least the following are 100% correct:

• All Social Security numbers
• All wages and withholding from the W-2’s you received.  Double-check your employer’s EIN too while you’re at it.
• The total gross proceeds from all of your investment sales, if you have any
• Mortgage interest from Form 1098, it you itemize
• The routing and account numbers of your bank account if you are expecting a tax refund or if you will have your payment due automatically withdrawn.

Phil Taylor, CPA – PT Money

My favorite end-of-season tax tip is to make a contribution to a Traditional IRA before you file. If you are eligible to make a tax-deferred contribution to a Traditional IRA, and you do so before you file your taxes, the contribution can be designated as previous year.  Meaning, you can deduct the current year contribution on your tax return you are filing for the previous year. For example, a $5,000 contribution to a Traditional IRA on April 15^th, 2013 would net a $1,250 deduction from someone in the 25% marginal tax bracket on his or her 2012 tax return. This is a great way to save for your retirement and save on taxes at the same time.

Jim Wang – Bargaineering

Maintain a list of all the documents you received this tax season. This will help you remember to include important documents this year if you haven’t yet filed and next year as the documents start coming in the mail and you wonder whether or not you’ve received everything in order to do your taxes. You should have a list of every institution that sent you a 1099, such as 1099-INTs from all your bank accounts that paid out interest, as well as other forms such as K-1s from partnerships and W-2s from your employer(s). Then, as the documents come in, you can use your list as a checklist to see who else is left. Remember to amend that document if you close accounts or add new ones.

Once you file your 2012 tax return, you won’t need many of the documents you used anymore. Scan them and shred the paper copies. If you are a little paranoid, keep the paper copies for, at most, six years (that’s the period of limitations if you fail to report income) and then dispose of them. Having an electronic copy is almost always as good as a paper copy so scan, shred, and recycle the old documents. When you scan them, make sure to store them in a secure location with adequate backups.

Elle Martinez – Couple Money

With the peak of tax season just about wrapped up, my tax tip for everyone is to review and automate. Once our taxes are submitted and we take a week or so to get our minds off of them, we then plan ahead on how we can improve for filing next year.

Using TurboTax for the last few years has actually made it easier to look over all the numbers and we can compare how did this year to how we did last year. Since we file for both personal and business, I use that data as motivation to be more organized with so I can find all the receipts and paperwork I need.

On the personal side we need to have a system for our donation receipts for when we go through possible deductions that we may qualify for. As for my business, I have to refine my storage so I can pull out supply receipts easily come tax time.

Besides keeping receipts our review for the past year showed that we can invest a little bit more for our long term future. We’ll taking advantage of  starting our toddler’s college fund and contributing more to both of our IRAs. Having this review also meant that we shopped around to found a brokerage that can manage our IRAs with lower costs than we’re currently using. Hopefully by the end of the month we’ll have that all finished.

La temporada de impuestos del 2013 ya está por terminar, y si no has tenido la oportunidad para declarar tus planillas de impuestos, la fecha límite es Abril 15 del 2013 para personas físicas.  Esta también es la fecha límite para enviarle el pago al IRS por cualquier impuesto sobre ingresos que tengas que pagar.

He aquí algunas cosas que deberías tomar en cuenta ya que Abril 15 está por llegar:

1.  Enfrenta tus temores tributarios. No sabrás exactamente cuánto debes, o si recibirás un reembolso, si no dedicas un poco de tiempo para preparar tu planilla de impuestos. El primer paso para entender tus circunstancias tributarias es recaudar todos tus documentos e ingresar a la página de TurboTax para llenar tu planilla y saber si tienes alguna responsabilidad tributaria. Pudieras hasta sorprenderte al saber que existen créditos y deducciones que podrían ayudarte a reducir tus impuestos sobre el ingreso, y hasta recibir un reembolso.  De cualquier modo, el saber tu “prognosis” te ayudara a trazar un plan para los próximos pasos.

2. Si no puedes pagar, como quiera deberías llenar a tiempo.  Muchos contribuyentes se sienten abrumados por que deben dinero en sus planillas de impuestos, pero el declarar la planilla a tiempo es un paso muy importante hacia reducir el pago que tienes que enviarle al IRS.  De acuerdo al IRS, la penalidad por no llenar a tiempo es de un 5% de la cantidad a pagar cada mes tarde, y puede llegar a ser hasta el 25 por ciento de los impuestos no pagados.  Puedes usar TurboTax para ayudarte a completar tu planilla de impuestos por ingreso y declarar a tiempo. Esto te ayudara a pagar la menor cantidad posible al evitar esta penalidad.

3. Si no puedes declarar a tiempo, aplica por una extensión y paga a tiempo.  La mayoría de las penalidades e intereses que el IRS cobra están basadas en la cantidad que debes de impuestos por ingresos. Si aplicas para una extensión para declarar tus impuestos, esto no significa que tienes más tiempo para pagar. Si sabes más o menos cuanto tienes que pagar en impuestos, pero por alguna razón no puedes todavía declarar tus impuestos, deberías mandarle al IRS el pago de los impuestos antes de Abril 15 junto con una extensión para declarar. El IRS explica que siempre y cuando ellos reciban más del 90% del dinero debes en impuestos antes del 15 de Abril, y le pagues el resto antes de la fecha de prórroga de la extensión, no tendrás una penalidad por no pagar a tiempo. En menos de 5 minutos TurboTax te puede ayudar a obtener una extensión automática para declarar de seis meses (recuerda: no hay extensiones para pagar)

4. Abril 15, 2013 es también la fecha límite para reclamar un reembolso o presentar una enmienda de tu declaración tributaria del año 2009. El final de la temporada de impuestos es también una fecha muy importante para personas que no han declarado sus impuestos pero califican para un reembolso. El IRS solo reembolsara a personas que declaren sus impuestos durante un periodo de tres años. Esto significa que si no has declarado tus impuestos del 2009 y calificas para un reembolso, tienes que actuar con rapidez para asegurarte que el IRS emita el reembolso por el cual trabajarte tan arduamente.

Abril 15 es la fecha límite para personas que las personas que necesitan hacer una enmienda en sus impuestos del 2009.  Esta fecha puede ser un poco más tarde si el pago de los impuestos para el ano tributario 2009 ocurrió en menos de dos años.  Lamentablemente la declaración electrónica (e-file) no está disponible para años anteriores, pero si necesitas declarar tus impuestos del 2011 o antes, puedes comprar el programa TurboTax de años anteriores e instalarlos en tu ordenador.

Sin importar tu situación tributaria, TurboTax tiene las herramientas y la ayuda que necesitas para que esta temporada de impuestos sea un proceso satisfactorio.  No temas en hacer preguntas y usar TurboTax para declarar tus impuestos antes de que sea muy tarde.  Solo TurboTax pone a tu disposición gratuitamente Contadores Publicos (CPA), Agentes Matriculados con el IRS (Enrolled Agent) y abogados tributarios para ayudarte con  tu declaración.

We’ve laid out 6 last minute tax tips to help you streamline your tax preparation and keep more money in your pocket.

1.  Prepare and Organize

Take  time and gather all of your necessary paperwork, forms, receipts and checklists.

Even though TurboTax ask you questions to determine if your eligible for tax savings, anything that deals with your income, your donations, your deductions, your receipts – anything at all – will help you save time if it’s collected before you begin preparing your tax return.

If you’re filling out your tax paperwork on your own with paper and pen, make sure you double and triple check all of your financial entries, your income declaration, and your math. One of the great things about tax software like TurboTax is that the math is calculated for you and you don’t need to know tax laws.

2.  Correct Spelling, Numbers, and Everything!

You could list out the top twenty errors simply by being reminded about spelling your name correctly, your dependents names, your employers, your social security number, employer’s numbers, addresses…the list goes on and on.  TurboTax can help you eliminate some of these errors with the ability to import your W-2 information from your payroll provider and financial institution.

Here’s the key to preparing your taxes- don’t rush, make sure you spell everything correctly, don’t skip anything, and double check your answers.

This also includes correct account numbers, bank routing numbers, and credit card numbers if you request a direct deposit refund or if you owe more and you’re paying with a credit card.

3.  Know Your Dependents

Ok, this one seems to be obvious, but it always creeps up on the IRS top ten tax filing mistakes leader board. Its vital to get this information right.

Next to filling in your name and social security number correctly, the government absolutely needs to know if you have any dependents you will claim.

It’s important to know who your dependents are and double check that they qualify as such. It’s important because if your dependents are left off your tax forms, you’re missing out on valuable tax credits and deductions. Also, adding a dependent that someone else is claiming is not allowed.  Only one person can claim a dependent.

4.  E-file and Direct Deposit

If you want to avoid  tax errors and get your tax refund as quickly as possible, ditch the paper and pencil and go online and e-file with direct deposit.  You will avoid mathematical errors and the IRS estimates that 9 out of 10 taxpayers will receive their tax refund within 21 days when e-file is combined with direct deposit.

5.  Get Help

If you are preparing your taxes in the 11th hour of April 15th and you still have tax questions, you can ask TurboTax tax experts your question while you prepare your taxes, free.

6.  One Final Reminder

If you’re signing electronically, make sure to correctly type in last year’s AGI (when you’re prompted).

My guess is that people are so joyful and exuberant as they complete the last section of data on their tax forms that they may forget this information, as they’re jumping through the air in slow motion as the party poppers pop and confetti rains down.

Using TurboTax and these last minute tax tips, will help you easily file your taxes before the tax deadline and save money.

Good luck!

1.  Go Online or Use TurboTax SnapTax to File

Using TurboTax online or SnapTax will make your life easy.  You don’t need to know the tax code.  TurboTax ask you simple questions related to your tax situation, puts your information on the correct tax forms, and gives you the tax deductions and credits you’re entitled to so that you can keep more of your hard-earned money.  You can also use TurboTax SnapTax from your mobile device to conveniently and accurately file your tax return in minutes.

2.  Don’t Miss Out On Filing and Your Money

The tax deadline is just a few weeks away so make sure you don’t miss out on filing your taxes.  Some new filers may end up thinking they don’t make enough money to file taxes, but if you had federal taxes taken out of your paycheck or are entitled to credits like education credits, or the Earned Income Tax Credit you may be missing out on a tax refund by not filing.

3.  Make Sure You Have All of Your Paperwork

I would say the most common problem I’ve heard people have while filing their taxes is that it’s hard to keep track of all of their documents. As the paperwork comes in, please have a folder or a tray ready to keep them safe until you decide to file.

Using tax software like TurboTax can help you get that information accurately submitted in a timely manner.

One note about tip income earned on the job. If you receive tips at your job, please make sure that you report that income when filing your taxes. Keeping a daily log of your tips as they come in can take away the headache of trying to remember everything that you receive. If you keep your employer in the loop, that information should be reflected in your W-2.

4.  If You Have Questions Talk to a TurboTax Tax Expert

If you are preparing your tax return and you have a tax question don’t hesitate to talk to a TurboTax tax expert who is a CPA, IRS enrolled agent, or tax attorney.  You can ask your tax questions for free.

Thoughts on Filing Taxes for the First Time

How many of you are getting your taxes filed for the first time? What is your biggest worry? Are you expecting a refund or do you think you owe money?

When preparing your taxes there are a lot of simple and easy errors you can avoid with a little double checking and extra diligence. Also, one of the biggest reasons a tax refund is delayed is because of an error. Before you file your taxes, check out this list of common errors and correct them before you file:

1. Incorrect or Illegible Social Security Numbers

Double-check your Social Security numbers before you file. You need to make sure that you have the right numbers for you and your spouse, as well as for any dependents that you claim. Your EITC and other dependent related tax benefits could be at risk if you have the wrong Social Security number for your child.

Also, make sure your tax return is legible. Rather than filling out the forms by hand – making it easy to mistake the number 8 for the number 3 in your Social Security number, use tax prep software.

2. Forgetting Dependents

Don’t forget to claim dependents. In many cases, college students can be claimed by you. Also, if you have been caring for an aging parent, you can often claim him or her as a dependent. Think about those to whom you have been providing material support, and don’t forget to claim them as dependents.

Just make sure that no one else is claiming them as well. Each dependent can only be claimed on one tax return. So you need to work out claims with siblings if it’s your aging parent, or with your ex if you are divorced.

3. Overlooking Tax Deductions

Go through your expenses from the past year, and make sure you aren’t overlooking deductions. You might be surprised at what you can deduct, from job hunt expenses to moving expenses, if you meet the right criteria. Don’t pay more than you have to.

4. Not Taking Advantage of E-file

E-filing is a great way to file your tax return quickly (don’t miss the deadline!) as well as get your tax refund processed quicker. Plus, there is a reduced chance of mistakes on the IRS end if you E-file.

If you are entitled to a tax refund, you can get it much faster when you E-file. E-file combined with direct deposit is the fastest way to get your tax refund.  The IRS estimates that 9 out of 10 tax refunds will be processed within 21 days.