The 2013 tax extension deadline is a about a month away on October 15th. Chances are if you missed the first April 15th tax deadline, you may be still procrastinating and will be rushing to make the final October 15th tax deadline. There’s no need to worry. If you start preparing now, and follow these 6 tips, you will be on your way to beat the tax deadline and avoid a late filing penalty.
1. Gather Your Documents – Make sure you have your documents like W-2s, 1099s, receipts for expenses, mortgage interest, and your kids’ social security numbers in front of you when you sit down and file.
2. Don’t Forget What You Did Last Year – Don’t forget that spring cleaning you did last year or other expenses may lead to a nice tax deduction. Taxpayers rushing to the deadline may forget they donated to charity, had job search expenses, or unreimbursed employee expenses. Have receipts for these types of expenses ready when you sit down to do your taxes.
If you forget any expenses when you sit down to do your taxes, TurboTax automatically double-checks your tax return as you go, searching for every tax deduction and credit you’re eligible for.
3. File Electronically – Save money and time by easily and accurately electronically filing your taxes online from the comfort of your own home. Your information is sent electronically to the IRS and you will receive notification of receipt from the IRS.
4. Review Information Entered – Make sure you double-check the names and social security numbers you entered. Incorrect social security numbers will cause you to miss out on valuable tax deductions.
5. Still File If You Owe – Even if you owe money, you will still need to file your taxes to avoid a late filing penalty, which is 5% of the unpaid taxes for each month your tax return is late, not to exceed 25% of unpaid taxes.
The IRS also created the Fresh Start Initiative to give taxpayers other options when they can’t pay all of their tax liability at tax time. Under this initiative you may be able to set up an installment agreement with the IRS and pay for your tax liability monthly.
6. Contact Our Credentialed Tax Experts if You Need Help – If you have any last minute tax questions don’t hesitate to contact our credentialed tax experts, who are CPAs and enrolled agents available via phone. TurboTax is up to date with the latest tax laws and is here to answer your tax questions so you can beat the final 2013 tax deadline.
Already filed? If you filed using TurboTax federal free edition, don’t forget to save a copy of your tax return for your records by October 15th.