Are you one of the millions of Americans still working on their 2024 taxes? Don’t worry, we’ve got you covered. With the deadline looming, it’s essential to stay focused and avoid common mistakes that can lead to errors and penalties. In this article, we’ll provide you with last-minute tax filing tips and reminders from a financial planning manager and the Internal Revenue Service. Insights from a finance pro
Levi Anderson, a financial planning manager with the San Diego office EP Wealth Advisors, a fee-only, fiduciary firm, shared some valuable insights and reminders for anyone still working on their taxes. If you’re filing an extension, it’s crucial to pay your tax balance by Tuesday’s tax deadline. “If you are filing an extension, be aware that taxes are due on the original tax deadline although you are filing an extension,” Anderson said. If you’re expecting a refund, be aware that you must pay your tax balance by the deadline, or you may face a penalty. However, if you’re paying your tax bill, the deadline to pay is still the original tax deadline, regardless of whether you filed an extension. This is crucial to avoid any confusion and penalties. Last-Minute Tax Filing Options
For last-minute filers looking for free filing resources, qualified taxpayers can still use IRS Direct File and IRS Free File. These services offer a range of tools and resources to help you file your taxes, including free filing assistance, guidance on tax credits, and support for filing extensions.
- IRS Direct File: This service allows you to file your taxes online, with the help of the IRS, and can be accessed through the IRS website (irs.gov).
- IRS Free File: This service offers free filing assistance to individuals with incomes below $69,000, regardless of their tax filing status. It also provides guidance on tax credits and support for filing extensions.
IRS Resources for Last-Minute Filers
The IRS has a wealth of resources available to help last-minute filers, including:
- IRS FAQs: The IRS has a searchable FAQ page with links to almost 60 questions and answers, covering a range of topics, including filing extensions, payments, and distributions.
- IRS Tips and Resources: The IRS has a page dedicated to last-minute filing tips and resources, including information on automatic extensions, trouble paying tax bills, and minimizing errors.
Avoiding Errors
The IRS also offers pointers to minimize the chance of errors on your return. These include:
- Verifying your filing status, names, Social Security numbers, and birthdates to ensure accuracy.
- Double-checking bank account and routing numbers for a refund via direct deposit.
- Answering the digital asset question on Form 1040 and other forms, which asks if you received or sold any digital assets, such as cryptocurrencies or NFTs.
The IRS recommends using electronic filing over paper filing to boost accuracy. Electronic filing decreases mathematical errors and prompts taxpayers for missing information. Opting for electronic filing and selecting direct deposit is the fastest and safest way to receive a refund.
Planning Ahead
Anderson, the San Diego finance professional, said now is a great time to start getting in shape for next year’s filing season. He recommends reviewing your tax return with your preparer and asking if they would recommend any changes to improve your tax situation in the future. This could include making contributions to your retirement accounts or taking advantage of tax credits.
Although we are four months into 2025, it’s still possible to make a last-minute contribution to your 2024 retirement accounts. These contributions can reduce your taxable income. However, be sure to note your contribution as a 2024 contribution when you make it.
* Don’t put your tax return in a drawer, as most tax-savvy moves need to be done by December 31st. * Review your tax situation with your preparer to get helpful pointers for the future. * Use electronic filing and direct deposit to minimize errors and receive your refund quickly. By following these last-minute tax filing tips and reminders, you can avoid common mistakes and ensure a smooth tax filing experience. Remember to stay focused, plan ahead, and take advantage of available resources to help you navigate the tax season.