We all know that the 15th of April tax deadline is on its way, but there is no need to panic. These tax tips for procrastinators will always help no matter how behind you are. Already, more than half of taxpayers have filed their returns, but annually, about 28% of people usually wait until the last couple of weeks to file their taxes. If this is you, then first of all don’t worry, as below are some last-minute tax tips for procrastinators that will help you avoid any mistakes, increase your refund and help file your taxes by the deadline.
Organize and Gather Your Documents
- First of all sit down and prepare your taxes.
- Ensure documents like 1099s from contract work and W-2s documents from employers are all in one place.
- Receipts for things like job search expenses, charitable contributions and Department of Motor Vehicles fees should not be forgotten.
Go Online
The strategy of preparing e-filed tax returns yourself from home computers has risen to about 6 percent, when compared with the same time last season. This research has been provided by the Internal Revenue Service. Going online is definitely one of the top tax tips for procrastinators, as it avoids the hassle of waiting for an appointment and fitting it into your schedule. This is because you can easily file conveniently from the comfort of your own home. With a simple tax return, you can save from up to $100 as opposed to the leading tax store. One thing that is against the tax tips for procrastinators, which needs to be avoided is waiting until the last minute. However, you have until 11:59 pm on the deadline date, which is the 15th of April.
E-File with Direct Payment
It has been reported by the IRS that about 85% of refunds have been deposited directly this tax season. Not only is E-file with direct deposit easy, but it is also secure and one of the quickest ways to get your tax refund. Related to six to eight weeks for paper-filed tax returns, nine out of ten tax refunds are distributed within 21 days or less.
Double-Check Important Info
Tax tips for procrastinators have no room for mistakes. A common mistake that is made by taxpayers is the last minute rush, which is made in order to meet the deadline. During this rush, taxpayers gather the wrong Social Security numbers for their spouses and children. You need to ensure you have the correct Social Security numbers whilst you are preparing for your taxes. This is definitely one of the best tax tips for procrastinators, as these numbers are required to get valuable exemptions, deductions and credits.
Maximize Your Deductions
If you are single, then the IRS gives you a standard deduction of $6,100 and if you are married filing jointly, they then give you $12,200. However, you may be able to make the most out of your deductions by collecting receipts for expenses like charitable contributions and other expenses, which will give you a better tax deduction.
Take Above-The-Line Suppositions
If you don’t have enough deductions to detail, you can decrease your taxable pay with above-the-line suppositions. This includes, transferring expenses for a job, allowance paid, the educator expense, tuition and fees deduction. Above-the-line suppositions cut your taxes without listing.
Don’t Forget Usually-Missed Deductions:
- Charitable Donations – if you donated to any charities, then don’t forget to have acknowledgements for your contributions ready.
- Tuition and Fees Deduction – you may have taken one college course to secure the promotion you have always wanted, but you could still be qualified for a deduction that is worth up to $4,000.
- Points – you can deduct points if you paid points or loan origination fees for a new home your brought. Ensure that is in front of you, as this will allow you to subtract the amount paid in full. Points paid to refinance your home can also be deducted. The paid points can be found on the 1098 mortgage interest statement and settlement statement.
- Gamble Losses – gambling losses can balance your winnings up to the quantity of your winnings. So, if you won at the casino last year, that’s another point included on your top tax tips for procrastinators list!
Last-Minute Tax Move
Usually, money-saving tax moves are made by the end of the tax year. However, there is still one more chance to decrease your tax accountability on the taxes you are filing. You can still pay up to $5,500 or $6,500 (if you are over 50) to your specific retirement account until you file by the deadline. Doing this, allows you to gain benefit of a deduction for your contribution.
File Even If You Owe
With an extension, you can get an extra six months to file your taxes. However, you need to keep in mind that this extension is to file and not to pay. You will still need to send the IRS at least 90% of your tax obligation to avoid any penalties; only if you owe money.