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.

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.

If you’re doing it by hand (this year will be my 29th return filed using TurboTax, but I’ve read some people still use pen and paper) check your math. It’s easy to transpose numbers or make a simple arithmetic error. Don’t risk interest and penalty for such a simple error.

If you spent time volunteering, the time itself isn’t a deduction, but you may be able to take a deduction for the miles driven. A weekly round trip of 20 miles  can add up at the current rate of $0.14 per mile. If you already itemize, this adds a bit to your potential tax refund. Remember, any cash donations must be acknowledged by the charity in writing before you file your return.

If you have a deduction from your paycheck to a charity, don’t forget to include this. This is a valid tax deduction even though you may not receive a direct acknowledgement from the end charity. Your final pay stub for the year should show the total donation you’ve made.

You know that real estate tax is tax deductible, but don’t forget the tax you pay each year for your car or boat also counts as personal property tax. It may be a couple hundred dollars added to your tax deductions.

Did you refinance again in 2012? If you paid any points on the new loan, you can deduct the points over the life of the loan. The good news is that if you were taking the partial points deduction for the prior loan, you now get to deduct the balance. With how rates dropped to record lows last year, this affects many people who were serial refinancers.

Did you purchase stock in your company at a discount and then sell it for a gain in 2012? The cost listed may not be what you paid. That discount was included on your W2 as ordinary income and should be added to your cost basis when you sell. It’s common to buy stock at a 15% discount, so be careful to check your records, and not let yourself be taxed twice on that discount.

I can’t end a last minute article without mentioning IRAs. Nearly everything on your return has already happened, income, stock sales, 401(k) deposits, and so on. Dec 31st came and went. The IRA is one of the few exceptions to this rule, you can still deposit, until April 15th, up to $5000, or $6000 if you were 50 or older in 2012, and have it count for your 2012 return.

If you converted any IRA money to a Roth IRA, you may be able to still recharacterize any or all of that conversion back to the traditional IRA if you decide it will be in your best interest while reviewing your tax return. This is one of the rare chances at a financial “do-over” and can benefit you if the converted shares fell in value or if your marginal tax rate was higher than you anticipated.

Lastly, go online and prepare your tax return.  TurboTax will help you get all of the tax deductions and credits you’re eligible for and help you keep more of your hard-earned money.  You can e-file up until 11:59 on April 15th if you go online, but the sooner you finish the quicker you can get your tax refund.  If you still have questions, you can get your questions answered by TurboTax tax experts who are CPAs, IRS enrolled agents, and tax attorneys, free.

If all else fails, you can file for an extension with TurboTax Easy Extension. This doesn’t buy you time to pay your tax bill, just some extra time to get your paperwork together. You’ll want to take what information you have and make the best estimation of what you’ll owe and send it with the extension request.

Comment and let me know if I helped you catch a potential mistake or oversight on you return.

The idea of income  can be complicated given the different types of pay a service member receives. First, you have your pay, then living allowances and moving allowances, travel allowances and then combat pay. Some are subject to tax and others are excluded, all must be reported. It’s a good thing you can use TurboTax Military Edition for your last minute tax filing so you can easily be guided through these special tax benefits and can keep more of your hard-earned money.

Here are 5 last minute tax tips for military that will help you save when you go online and file your taxes.

1.  Combat Zone Exclusion

If you are deployed in a designated combat zone, which are designated by an Executive Order from the President and listed here on the IRS website, then part of your pay is excluded from taxation. Afghanistan has been a combat zone since September 19, 2001. In practice, the income that is excluded as a part of this will not appear as wages on your W-2. If you look at your W-2 and it doesn’t match what you’re paid, it’s because of the exclusion. If you do have excluded pay on your W-2 and it shouldn’t be, then you need to get a corrected form from your finance office.

2.  Selling Your Home

This is not a military-only tip but given how often service members move, it’s one that you may be able to take advantage of. If you’ve lived in a home for two out of the last five years, you are allowed to exclude up to $250,000 of gain ($500,000 if you are married) on the sale of that home from your taxes. These are the same rules as for civilians but you can have the 5 year test suspended if you serve on qualified official extended duty.

3.  Travel Expenses

If you are a reservist and travel more than 100 miles away from home to perform your duties, you can deduct unreimbursed travel expenses as a miscellaneous itemized deduction. This can include all unreimbursed expenses from the time you leave home until you return, it’s limited to the amount the federal government generally reimburses employees for travel expenses.

4.  Forgiveness of Decedent’s Tax Liability

This is a bit of a sad tip, but if a member of the U.S. Armed Forces dies in active service in a combat zone or from wounds, disease or other injury received while in a combat zone or from a terrorist or military action, the tax for the year of death and potentially for prior years can be forgiven.

5.  Deferral of Payment

This last tip may be useful come tax payment time but if you are performing military service and you notify the IRS that your ability to pay the income tax has been “materially affected by your military service” then you can defer payment to 180 days after your termination or release from service. If you pay the tax in full before the 180 days, you will not be charged interest or penalty.

It’s great that the IRS made allowances for those who serve, especially in combat zones far away from home. I know that being away from your family and loved ones is hard enough, you don’t need it to be harder.

With these last minute tax tips, the ease of use of TurboTax Military Edition, and the ability to ask TurboTax tax experts your tax question while you file your taxes, free, there’s no reason to delay filing your taxes any longer.  The faster you file, the sooner you will get more money back in your pocket.

Military members who are ranked E-5 and below can file free.

Every year there are tens of millions of taxpayers that wait until the last minute to file their taxes. Doing so will not only cause stress but might also put you in jeopardy of not being able to complete them before April 15, and possibly face penalties from the IRS.

So if you’re one of those late-filers – what are you waiting for!? With only a few weeks left before the April 15 deadline, we at TurboTax want to make sure all of your tax questions are answered and that you feel empowered to file your own taxes and keep the money you deserve

To share some important last-minute tips to help you file your taxes within a short period of time, financial expert and TurboTax spokesperson Mike Periu will be hosting a live tweetchat in Spanish on Thursday, April 4 at 9 – 10 p.m. EST / 6 – 7 p.m. PST.

By using the hashtag #TurboTaxChat in your tweets during the event, you’ll be able to join in the conversation and ask your questions on:

• How to take advantage of credits and deductions you deserve
• How filing your taxes online will help you save time and money
• What is an extension and how to file it properly
• And much more!

There might be a lot of reasons why you haven’t filed your taxes. Whatever they may be, don’t miss the opportunity to empower yourself with more knowledge during this tweetchat and file your taxes as soon as possible to keep more of your hard earned money!

Tweetchat with @MikePeriu and @TurboTax

Thursday, April 4, 2013

9 – 10 p.m. EST / 8 – 9 p.m. CST / 6 – 7 p.m. PST

#TurboTaxChat

Cada año, millones de contribuyentes esperan hasta el último momento para declarar sus impuestos. Esperar no solo te causará estrés pero también te pone en peligro de no poder terminar tu declaración antes del 15 de abril, y posiblemente meterte en problemas con el IRS.

Si todavía no has declarado tus impuestos – ¿qué estás esperando?  Solo quedan algunas semanas antes de la fecha límite del 15 de abril, y aquí en TurboTax queremos estar seguros de que tengas las respuestas a todas tus preguntas y que te sientas seguro/a de poder declarar tus propios impuestos y quedarte con el dinero que te mereces.

Mike Periu, experto en finanzas y portavoz de TurboTax, estará compartiendo unos consejos muy importantes que te ayudarán a declarar tus impuestos en poco tiempo. Lo hará durante un Tweetchat en español que se llevará a cabo el jueves 4 de abril, entre 9-10 p.m. EST / 6-7 p.m. PST.

Para ser parte de la conversación y hacer tus preguntas, incluye el hashtag #TurboTaxChat en tus tweets durante el evento. Temas a tratar incluirán:

• Cómo tomar ventaja de los créditos y deducciones que te mereces
• Cómo ahorrarte tiempo y dinero al declarar tus impuestos en línea
• Qué es una extensión, y cómo procesarla correctamente
• ¡Y mucho más!

Es posible que tengas muchas razones por las cuales todavía no hayas declarado tus impuestos. Sean las que sean, no te pierdas de la oportunidad de aprender de este tema tan importante y poder declarar tus impuestos en cuanto antes, y así poder quedarte con más de tu dinero.

Tweetchat con @MikePeriu y @TurboTax

Jueves 4 de abril, 2013

9 – 10 p.m. EST / 8 – 9 p.m. CST / 6 – 7 p.m. PST

#TurboTaxChat

Overlooked Deductions

1. Moving Expenses for a Job

With unemployment still high, a lot of people have needed to go the extra mile, literally, to find work. What many people don’t realize is that moving expenses related to relocating for a job may be deductible. To qualify, you need to move at least fifty miles away from your old home, and you’ll need to work at your new job for at least 39 weeks after the move.

If you qualify based on the information above, you’ll then be able to deduct transportation and storage expenses. This may include hiring movers, renting moving trucks, storage units, tolls, parking, and so on. In addition, you may even be able to deduct lodging if the move is long and takes a few days to reach your destination.

2. State Sales Tax

The money you pay in state sales tax is a potential deduction, but it isn’t always worth taking. Those who can benefit most from this deduction are people who live in states that don’t have a state income tax. Every taxpayer has the option to choose between deducting state and local income taxes, or state and local sales taxes. Obviously, if you aren’t assessed a state income tax but still pay a sales tax, deducting the sales tax will almost certainly provide the greater benefit.

There are tables that give you deduction amounts based on income levels, but keep in mind that big purchases like cars, boats, and recreational vehicles count as well. So, be sure to keep good records of larger purchases which will help you determine if taking the state sales tax deduction is a better option.

3. The Earned Income Tax Credit

While nobody wants to find themselves in a low income situation, those who do have a nice tax credit available to them that often goes overlooked. The average earned income tax credit, or EITC, is around $2,000. Since this is a credit and not a deduction, that’s essentially like putting $2,000 into your pocket. And you don’t have to be strictly low income to qualify, because just losing a job halfway through the year could bring your income down enough to qualify.

Here are five intriguing possibilities for passing the time:

Last-Minute Tax Prep

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Unfortunately, for some of us, the extra two days of filing time will be used finishing your tax return that would’ve been late under the normal deadline.

If this is you, don’t be too hard on yourself. It would have been preferable to finish early (and have the options below at your disposal) but instead of dwelling on leisure time lost, see these extra two days as your “get out of jail free” card—a rare opportunity to get away with waiting until the last minute.  Plus, preparing your taxes with TurboTax is easy even if you do wait until the last minute.

Spending Your Refund

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Those of you who did file early have something even sweeter than a two-day break: your refund check! Whether this year’s refund was $200 or $2,000, all that matters now is how you will spend it. The possibilities are endless and vary based on your priorities for the money. Are you behind on debt, and looking to chip away at the barriers holding you back from financial freedom? This weekend is the perfect time to sit down and pay some long-overdue bills.

Or, are you all caught up financially, but dying to make a long-delayed “impulse purchase?” Maybe it’s a new TV, or some new threads for your wardrobe. Whatever the case may be, this is the time to indulge—you’ve earned it! Use this weekend to invest your refund check wherever it will provide the best return.

Purposeful Relaxation

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Nearly all of us are guilty of putting relaxation on the back burner. In the rush to get all our ducks in a row, we push ourselves relentlessly, treating as luxuries such basic necessities as restful sleep or time to unwind. Yet, in the process, we deprive ourselves of the opportunity to recharge, to unburden ourselves from the many stressors, obligations, and worries that fill our minds and simply “be.”

Far-fetched or unnecessary as it may seem, research shows that relaxation is actually essential to well being. In addition to our work capabilities, we are also emotional and curious beings with needs that stretch far beyond productivity. To that end, spend your two free days immersed in relaxation: visit a day spa, get a massage, or simply sprawl out on the couch and enjoy an engrossing movie. Your mind and body will thank you for it.

Taking a Weekend Road Trip

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As humans, we are creatures of habit. We take comfort in familiar surroundings, routines, and activities that give structure and meaning to each day. Yet, at a certain point, habit begins to harm us rather than help. If we never push beyond our comfort zones or expose ourselves to any new experiences, our brains start to stagnate, becoming mired in the apathy and boredom that mind-numbing predictability creates. To dig ourselves out, we need a potent dose of the unfamiliar.

Now, we’re not saying the 9-5 office worker needs to reinvent himself as a starving artist. It can be a much smaller change: like taking a weekend road trip. With the extra two days this year’s tax deadline affords you, why not venture out onto the open road? Visit a popular landmark in the next state over. Travel to a town you’ve never seen before, and eat at one of the restaurants. The simple act of seeing and experiencing something new will stir the neurons in your brain like nothing at home will.

Resurrecting a Neglected Hobby

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In the noisy chaos of daily life, nothing feels less important than our hobbies. No one nags you about not practicing your guitar often enough, or failing to hike as frequently as possible. And of course, it’s good to be on top of the things that matter in your professional life. But it’s when you ignore your hobbies too much, that you’ve become a workaholic, and must get back in touch. The world is perfectly happy to let you bury your passion beneath its demands. If you want to avoid feeling like a lifeless automaton (productive but totally lacking in the soul-stirring excitement that makes life worth living) you need to actively and zealously make time for your passions.

Now is a perfect time to start. With two free days at your disposal, resolve to guiltlessly resurrect a hobby you’ve been sacrificing. And don’t just pick up your instrument or head to the batting cages: do it with gusto and enthusiasm, remembering that these activities supply your zest for living.

Free File

Are you eligible for Form 1040 EZ?  Here are the key considerations for filing Form 1040 EZ.

Filing Status Choices Are Limited

There are five possible filing statuses. If you file as single or married filing jointly, you are eligible to use Form 1040 EZ.  If you choose head of household, married filing separately, or are a qualifying widow with a dependent child, you’ll have to use either 1040 A or 1040.

Dependents are Not Allowed

 This is pretty simple. Do you have kids or a parent you take care of more than 50%? If so, since Form 1040 EZ does not allow you to claim any dependents, you’ll want to pick a different form.

No Adjustments to Income on Form 1040 EZ

No adjustments to income are permitted on 1040 EZ. Common adjustments to income include the IRA deduction, the moving expense deduction, and alimony paid. If you experienced any of those expenses, or any other adjustment to income, you’ll want to pick a different form besides Form 1040 EZ.

Credits – Only the Earned Income Tax Credit Is Permitted

You can’t take the child tax credit, the dependent care credit, the foreign tax credit, or any other tax credit except the earned income tax credit on Form 1040 EZ. So while you shouldn’t let your eligibility for the Earned Income Tax Credit prevent you from using Form 1040 EZ, you have to use a different form if you qualify for any other tax credit.

Age and Vision Requirements

You must be under age 65 and not be blind to use Form 1040 EZ.  It’s not actually blatant discrimination that prevents the elderly and those without sight from using Form 1040 EZ; it’s just that the form doesn’t provide for the ability to take the increased standard deductions those over age 65 and blind would otherwise receive.

No Six Figure Incomes on Form 1040 EZ

Only taxable incomes less than $100,00 can be processed using Form 1040 EZ. Any amount higher means you’re looking at filing Form 1040 A or Form 1040. It should be noted that if you otherwise qualify for Form 1040 EZ but for being over the income limit, your Form 1040 A or Form 1040 should still be relatively simple and painless to prepare.

No “Weird” Income – Except Alaska Permanent Fund Dividends

Form 1040 EZ is designed for straightforward tax situations.  So if you won the lottery, ran your own business, or received a pension or any government payment besides unemployment income or Alaska permanent fund dividends, you’re out of consideration for Form 1040 EZ. Taxable scholarships and fellowship grants are allowed as is interest income, but only if the latter is under $1,500.  Tips are only allowed if they are included in boxes 5 and 7 of Form W-2.

In taxes, nothing is more straightforward than filing Form 1040 EZ.  If you qualify, make your life simpler (and less expensive) by filing Form 1040 EZ.  Don’t worry about figuring out which form to use, TurboTax makes figuring out which form to use easy by taking your information entered and putting it on the correct forms.

Tax Checklist

Think of it like you were packing for a long trip overseas. No matter how many times you’ve double checked all of your bags, it’s a good idea to triple check once more before you get on the plane.

We’ve compiled a list of necessary items to add to your checklist in a effort to safeguard you against any forgotten or mismanaged information. Even if you use tax preparation software like Turbo Tax to prepare your taxes, checking these last-minute items won’t do anything but help.

Number Confusion

Everyone knows their social security number by heart . . .right? Right. We’ll maybe. It’s not going to hurt to check your social security number for accuracy one more time. Make sure it’s correct and in the right place. The IRS reports this (incorrect or missing SSNs) as one of the most common filing mistakes.

All Necessary Paperwork

If you decide to use tax prep software, all you need to do is enter the correct amounts from your W-2s and 1099s, clip them to the printout, and file copies in a secure location. If, however, you choose to go the paper tax route, make sure to attach all of the necessary forms to your tax form before you mail it in.

Credits-a-Plenty

Yes there are many tax credits and deductions to choose from. Not everyone will itemize, but you should still double check the credits you are claiming and possible deductions that apply to you. Remember, Turbo Tax will guide you through the process of itemizing your deductions and then tell you if it is better for you to take the standard deduction or itemize.

You Can’t Blame the Post Office

This advice may seem less to do with tax prep and more to do with time management. But when the outcome directly effects your tax status with the IRS, everything is related to taxes.

If you’re mailing your tax return, check the hours of operation at your local post office. The IRS won’t care if you tell them the post office closed early. I hate telling people to check the hours of operation, because no one should wait until the absolute last minute to mail their return. But plenty of people do . . . so check your post office and make sure you get there in time.

The last day to file taxes in 2012 is April 17th. We get a couple of extra days because of the weekend and Emancipation Day.

Plan for Next Year

This bit of advice might save you time, money, and frustration . . . next year. As you’re preparing and filing taxes this year, make a list of the hurdles, frustrations, and bumps in the road you may be experiencing. If you were too unorganized this year, plan ahead to get everything lined up next year. If you’re refund is too big or if you owe too much, get with your employer to make the necessary adjustments so you’re having the IRS take out the proper amount of taxes from your current paycheck.

Get organized!

Setting up a filing system with all your tax information, from receipts to statements to last year’s tax return – is the best way to avoid scrambling at the last minute. If you’re not organized you might miss out on significant tax breaks, make math mistakes, or improperly estimate what you owe (and thus get hit with penalties and fees).

Last Minute Tax Tips

Don’t overlook valuable credits…

According to the IRS, an astounding 25% of taxpayers who are eligible for the Earned Income Tax Credit fail to claim it. This credit, designed for lower income working families and individuals, is worth up to nearly $6,000 for those who qualify. Other credits that are often missed include the Child and Dependent Care Credit, which is worth between 20%-35% of what you pay for child care while you work, and the American Opportunity Credit, which is worth up to $2,500 of your college tuition, course materials, supplies and related expenses paid during the taxable year.

 …or deductions

People tend to remember cash donations they made to their favorite charities, but they frequently overlook out of pocket charitable contributions. Granted you can’t deduct your time, but if you drove your car for charity in 2011, you can deduct 14 cents per mile plus any parking and toll fees faced during your philanthropic journeys. Other deductions often overlooked include things such as student loan interest, property taxes, moving expenses, and job hunting expenses, which, by the way, are deductible even if the hunt was not successful.

Just don’t go overboard!

This is where many self-employed individuals (which are a lot of us these days) tend to run into trouble, whether it’s merging their business and personal expenses, claiming large deductions for business travel and entertainment, or taking massive write-offs. Don’t get carried away – especially if you can’t back it up with proper documentation! – or the IRS will take notice, which may increase the odds of an audit. Remember: the key is to look like other taxpayers in your income bracket.

Contribute to your IRA

The maximum contribution is $5,000 for the 2011 tax year; $6,000 if you’re 50 or older. You have until April 17^th to make these contributions. Part – or all of it – may be deductible.

Lastly..

Don’t wait any longer!  If you aren’t going to make the tax deadline you’ll need to file an extension by April 17, you can do it online for free.  And remember, an extension to file isn’t an extension to pay, so if you owe money, that payment still needs to be sent to the IRS by April 17.

If you are just one of the 28% of taxpayers out there that wait until the last minute to file, no more excuses.  Go online and file today!  With TurboTax you could even be done in under an hour.

• For a faster return submission, e-file. TurboTax offers a free federal e-filing plus e-filing of your state for an additional charge. For me, avoiding that post office line is well worth it. You should also know, a refund will follow a paper return in about six to eight weeks after filing, while the e-filed return will have your refund to you in about three weeks.
• If you are getting a refund, you can ask the IRS to direct deposit your refund to your checking or savings account. You are permitted to designate up to three separate accounts if you wish, but as the IRS warns, your bank may not accept a joint refund into your single accounts, so check with your bank first.
• Owe money and can’t pay? Still, file your return. There are penalties for failure to file which are in addition to the late payment penalty and interest. There are two choices for delayed payments: the brief additional time to pay, an extra 60 to 120 days to pay in full, or the installment plan. For the installment plan you use Form 9465 and can choose to pay for up to 60 months. This should be a last resort, but the IRS interest rate is better than most credit cards will charge, and may be the right option.
• Wondering just how much interest the IRS will charge you if you are late or choose an installment plan? Easy. News Releases and Fact Sheets is the place to look. Enter “interest” in the search field and choose “title.” I quickly uncovered the latest release which told me the rate for Q2, 2011 is 4%.
• Just can’t cope with that pile of paper? File an extension with TurboTax for free. We’ll walk you how to form file Form 4868 the “Application for Automatic Extension of Time To File U.S. Individual Income Tax Return.” To be clear, this will just extend the time to file your return and help you avoid the potential penalty for not filing, it’s not an extension of the time to pay your taxes. So while you’re still finding letters thanking you for your large charitable donations, be sure that you’ve at least paid enough to avoid a penalty, then file the extension.
• One last thing many taxpayers can easily miss, the Make Work Pay tax credit. This credit can get you up to $400 (or $800 if married filing joint) depending on your income level. If you’re doing your taxes by hand, it’s pretty easy to overlook. This credit was only available for 2009 and 2010, so don’t miss out.

I hope these tips helped you through the final hours before calling the tax year a wrap.

Fund your 2011 IRA: There is a limit of $5000 or $6000 if you are 50 or older. If you are covered by a retirement plan at work, your deductible amount is limited based on your income. For singles, your contribution is phased out from an income of $56,000 to $66,000 and if your are married, $90,000 or less in modified adjusted gross income gets you a full deduction, and it’s slowly phased out until your MAGI reaches $110,000.

Decide how to handle that Roth conversion: In 2010 something remarkable  happened regarding the rules concerning the Roth IRA. For conversions made in 2010 you could claim the full conversion in 2010 as usual, or you can split the income over two years, and add half the income to your 2011 tax return and half to 2012.

The HSA: If you had an HSA in 2011 you can make your final deposit by the tax return due date, up to $3,050 if you have self-only HDHP coverage and $6,150 if you have family HDHP coverage.  Generally you can claim your contributions as an adjustment to income.

Charitable deductions: In general, when we donate to charity, it’s either by check or credit card for easy tracking. If you’ve donated items such as clothing, books, toys, or furniture to a qualified charity during the year, now’s the time to find that receipt. In fact, now is the time to grab a folder and write “taxes 2011″ and “charitable deductions.” Keep these receipts in order so you don’t miss any potential deductions. If you work for an employer who offers a payroll deduction for charity, often the employer does not send a year end confirmation, your final paystub should serve as proof of the donations during the year, this one is easy to miss.

The state sales tax deduction: You are able to take a deduction for sales tax instead of state income tax if that benefits you. For states with no income tax this is an easy decision. If you had a large purchase such as a car, you may find that sales tax paid over the course of the year was greater than your state income tax.

As we get near the filing deadline, I hope these tips help you uncover some tax savings you may otherwise have missed.  Also remember that TurboTax will guide you through these entries.

Wondering what a tax extension is? Here’s a short video explanation of the concept:

Filing for a Tax Extension

If you need to go ahead and  file an extension there are 3 ways to go about it. You’ll need to use Form 4868 (Application For Automatic Extension of Time To File U.S. Individual Tax Return).

• Online: You can use TurboTax Easy Extension to file a personal tax extension for free.
• Partial Payment: If you use a valid debit/credit card, you send in a partial payment of at least $1 to receive an extension.
• Paper File: Simply complete Form 4868 and mail it in to one of the addresses listed on the 4th page of the form.

Please remember that the extension is for filing your tax returns, not for your payment. You will owe interest on any payments made after April 18, 2011. You also may have a additional penalty if you paid less than 90% of your tax burden by the deadline.

Please check to see what your state’s specific guidelines are for tax extensions. The IRS also has information for tax payers who have special circumstances, such as those serving in a combat zone.

Thoughts on filing a Tax Extension

How many of you will be filing tax extensions this year? How are preparing to send your extension form in?

First, some good news this year.  Did you know there are three extra days to file your federal taxes?  The federal tax deadline is Monday, April 18 instead of April 15. Double check with your state though, as not all state tax deadlines are the same.

Here are a few tax savings tips to think about:

• In the rush to file, don't miss out on opportunities to reduce your tax bill.  Contribute to your IRA. Even procrastinators can save money on their taxes and they have until the April 18 deadline to contribute to an IRA and get a deduction on their 2010 tax return.

• Remember all those charitable contributions throughout the year. This includes cash and non-cash, household items like clothing, electronics and toys you may have donated.  If you itemize, these donations can add up to tax savings.  Mileage to and from charitable events, even babysitter fees while you are volunteering can be deductible too.

• Don't just take the standard deduction if you think you're running out of time. It may be worth more to itemize. Tax software programs like TurboTax can compare both and help you decide which is best for you.

• No time for an appointment.  The easiest way to file on time is to go online. Taxpayers can go online to prepare and e-file taxes up to the last minute. Online tax preparation is fast, easy and convenient.

• Be sure to efile your tax returns. It's faster and more accurate.  You avoid long lines at the post office and with direct deposit, you get your refund back in as little as eight days and acknowledgement from the IRS that your return has been received.

• Need more time? Don't panic.  Taxpayers can get an extra six months to file (until Oct. 17, 2011) a tax extension. But remember, a tax extension is not an extension to pay your tax bill. Individuals still need to send the IRS a payment for taxes owed, within 90 percent accuracy, to avoid late penalties.  To file a federal tax extension (tax form 4868 for all you tax savvy folks) for FREE, go to TurboTax.com.

• Can't pay it all now...you're not alone. Taxpayers who can't pay the full amount they owe can request an installment plan. You may qualify for a plan as long as you don't owe more than $25,000, and you must be able to pay your tax bill off within five years. There are fees to do this, but may be worth it to avoid fees and penalties.

• Plan ahead.  Ok, it may feel like it's too soon to start thinking about your 2011 taxes, but things you do throughout the year, like donations, volunteering, or medical expenses may have an impact at tax time. The more you plan the better prepared you'll be come next tax day.

Think: bite-sized chunks

To alleviate the anxiety and stress of filing your taxes, get started TODAY! Start by organizing your paperwork, establishing a filing system, reviewing all your documents, and then e-file! It’s really as simple as that.

Skip the tax store

Let’s face it – it’s getting a little late in the season to hire a pro or make an appointment at a tax store.  And the thing is, especially if your taxes are simple (ie: you claim the standard deduction, as 60% of filers do), you don’t need to pay someone to file your taxes! Last year, taxpayers with a 1040 A/EZ spent some $2.5 billion in preparer fees—a total waste of money! Save yourself several hundred dollars, and file on time with the help of a software program – likeTurboTax. After all, it’s what many pros use behind closed doors—at your expense.

Take advantage of all the breaks you’re entitled to

One of the more valuable tax credits just so happens to be one of the many credits that Americans forget to claim: the Earned Income Credit.  For tax year 2010, the maximum credit for a household with three or more children is a whopping $5,666.  Claim it if you’re eligible; after all, a credit reduces your taxes dollar for dollar.

Make contributions to your IRA

One of the best ways to save for retirement and reduce your tax liability is with an IRA.  The maximum contribution limits for 2010 is $5000 for those under the age 50; $6000 for those age 50 and over.  In most cases, you have until April 18^th to make these contributions (even if you’re planning on filing for an extension).

Are you one of the laggards? Don’t despair. With less than a week to go before that all-too-familiar April 15th deadline arrives, here are some last-minute, time-saving tax tips to help trim your tax bill and even maximize that refund.

Save for Retirement

Even procrastinators can save money on their taxes. An Individual Retirement Arrangement (IRA) is one of the best—and simplest—ways to save for retirement. If you discover that you have a big tax bill, you may be able to open a traditional IRA for the 2009 tax year to minimize your financial burden. But, like everything related to taxes, there are bells and whistles.

Here’s the lowdown: If you are under age 50, the maximum amount you can stash in a traditional IRA for 2009 is $5,000. If you are older than 50, the contribution cap rises to $6,000. But you also have to meet certain income restrictions to get the full tax benefit of an IRA. For example, if you are married filing jointly, your modified adjusted gross income must be $89,000 or less to get the full-throttle deduction.

Setting up an IRA is simple, too. In fact, any brokerage firm will be delighted to help you open an account online or by phone before April 15.

Be Generous

You don’t have to give until it hurts. In fact, charitable contributions are another fantastic way to minimize the tax bite. In most cases, you can give up to 50% of your adjusted gross income in a given year to organizations such as churches, hospitals and nonprofit groups.

Sometimes, however, we don’t do the best job of tracking our philanthropic actions. Take a careful look at your credit card receipts and cancelled checks from the past year. Did you text donations to help earthquake victims in Chile or Haiti? Simply look over your phone bills to see what you gave. To claim a cash contribution exceeding $250, make sure you have a receipt or acknowlegement from the organization, too.

It’s also smart to establish a paper trail if you gave away a lot of stuff such as clothes or furniture last year. In addition to donations, keep in mind that mileage to and from volunteering is deductible. For more information on donating to charity, see these very detailed guidelines on the IRS website.

Because so much giving is done online, create a folder in your email inbox at work and at home labeled “Charitable Donations” to monitor future gifts. I also keep my financial house in order by tracking charitable contributions with budgeting software from FinanceWorks, which is offered by my credit union. It has changed my financial life.

Go Online

Taxpayers can go online to prepare as well as e-file taxes up to the 11th hour with TurboTax– it’s fast, easy and convenient. Plus, filing your taxes online minimizes the risk of a making a mistake. In fact, the error rate among paper filers is 20%. For e-filers,  it is less than 1%.

Filing online also helps you avoid those the long lines at the post office. And, you can get your refund back in as little as eight days with direct deposit.

Buy a Home

It’s still not too late to get the First-Time Homebuyer Credit. To qualify, you must be in contract to buy a principal residence on or before April 30, 2010. You will have to close on your new home by June 30, 2010.

If you qualify, you may be eligible for a maximum tax credit of $8,000. To get that hefty credit, you will not have owned a primary residence during the three years up to the date of purchase. You must also meet certain income restrictions: your adjusted gross income cannot be more than $75,000, or $150,000 for joint filers.

If you don’t qualify for the first-time homebuyer credit, don’t despair. You could be eligible for a long-time resident credit of up to $6,500.

There is a significant amount of documentation required if you want to receive either of these credits, which is why the IRS doesn’t let you e-file. The IRS offers extensive information about the ins and outs of the homebuying credit on its website.

Get an Extension

Need extra time? Taxpayers who file for an extension will get an extra six months to file. You new deadline will be Oct. 15 2010. But remember: An extension to file is not an extension to pay taxes. TurboTax Easy Extension allows you to file your personal or business extension online. And a federal extension doesn’t grant you an extension on your state tax return. For guidelines for your state, click on this list of state tax websites compiled by TurboTax.

If you owe money to the IRS and you don’t think you can pay the bill, don’t dilly dally. You still need to file your taxes. File your return as soon as possible, preferably before midnight on April 15. Why? Failure to file your taxes is a federal offense that could have significant legal ramifications.

For more information on your payment options, see my advice. You should also check out this USA Today article.

Scrambling to file your taxes? Lost a tax form? Fearful of an audit? Wondering what the Making Work Pay Credit is?

Listen here:

[podcast]http://cloud.consumerismcommentary.com/audio/taxcast005.mp3[/podcast]

Listen in as Consumerism Commentary podcasting gurus Flexo and Tom Dziubek share some last-minute tax filing tips courtesy of tax expert Kelly Phillips Erb. Kelly, also known as @TaxGirl on Twitter, shares a few last-minute tax tips for tax procrastinators, or even those that might need to file an extension.