The tax deadline is almost here! Most people who are due tax refunds file early in the year, but this year may be a little different. According to the latest IRS stats, there are millions of tax refunds that still need to be issued for this tax season. But no matter whether you are due a tax refund or owe money, with just one day left before the tax deadline (11:59 pm local time on Monday, May 17), it’s time to hop to it. Here’s how:
- Get started: Gather your W-2s and 1099s that report income all in one place. Also, don’t forget receipts and forms that report expenses worth valuable deductions and credits like receipts and forms showing childcare expenses, charitable donations, or student loan interest.
- Double-check important information: Don’t rush when entering information like social security numbers. One of the top mistakes taxpayers make when rushing to meet the tax deadline is gathering incorrect Social Security numbers for their children and spouses, and even misspelling their name! Dependents are worth valuable deductions and credits but you have to have the correct social security number to claim them.
- E-file: TurboTax makes it easy to e-file your taxes online in the comfort of your own home. With the TurboTax Mobile App you can easily jump start filing by snapping a photo of your W-2, 1099-NEC if you are self-employed, or importing your W-2 or 1099 information directly from your payroll provider and financial institution. Your information then transfers to the correct forms eliminating data entry and allowing you to move seamlessly across devices, so you can do your taxes anytime, anywhere.
- Choose direct deposit: E-file with direct deposit is the fastest way to get your tax refund. If you e-file with direct deposit, the IRS still expects to issue nine out of 10 tax refunds within 21 days or less of acceptance. Paper-filed returns usually take six to eight weeks from acceptance, but they are taking longer right now.
- Get a last-minute tax deduction: You can contribute up to $6,000 ($7,000 if you’re over 50) to your traditional individual retirement account (IRA) and take advantage of a 2020 deduction for your contribution. Just make sure you tell the administrator that your contribution is for 2020 otherwise they may assume that your contribution is for 2021. IRA contributions can be made up until the extended tax deadline on May 17 and will make an impact on the taxes you are filing.
- File even if you owe: Although filing an extension can get you until October 15 to file your 2020 taxes; an extension to file is not an extension to pay. If you owe money, file your tax return by the May 17 tax deadline and pay as much as you can. If you can’t pay, don’t worry. You can apply for a payment plan agreement. You may be eligible for an installment payment plan for up to six years.
- Talk to a tax expert who can also provide a final review of your tax return all from the comfort of home: If you have tax questions you can connect live via one-way video to a TurboTax Live tax expert with an average of 12 years experience to get your questions answered or have your taxes reviewed without leaving your house. TurboTax Live tax experts are available in English and Spanish year round.
Don’t worry about knowing tax laws and forms. TurboTax will ask you simple questions about you and give you the deductions and credits you deserve based on your answers.