As the tax deadline looms, many tax filers may still be scrambling to get their taxes done. If you’re among them, don’t worry – there’s still time to get everything in order. Whether you’re filing an extension or working on a complete tax return, here are some last-minute tax filing tips to help make the process less painful. ### Tips for Filing an Extension
If you’re filing an extension, you still need to pay your tax balance by the original tax deadline. As Levi Anderson, a financial planning manager with EP Wealth Advisors, a fee-only, fiduciary firm, puts it:
“Although the penalty for ‘Failure-to-Pay’ is less than the ‘Failure-to-File’ penalty, the penalty and interest can add up if you wait until later to pay your taxes you owe.”
While this might seem like a low priority, it’s essential to keep in mind that you’ll still owe taxes, even if you’re filing an extension. To avoid these additional charges, make sure to pay your tax balance as soon as possible. ### Contributions to Retirement Accounts
If you’re still working on your taxes, don’t forget that you can contribute to your retirement accounts, even if you’re four months into the new year. According to Anderson:
“Making a last-minute contribution to these accounts still can count for the 2024 tax year until April 15th. Just be sure you note it as a 2024 contribution when you make it.”
This is a great way to reduce your taxable income and get a head start on next year’s taxes. ### IRS Resources for Last-Minute Filers
The IRS offers a range of free filing resources, including IRS Direct File and IRS Free File. These services can help you file your taxes and even provide an extension of time to file if needed. As the IRS notes on its website:
“Anyone can use IRS Free File to submit an extension of time to file regardless of their income.”
You can find more information on the IRS website, including:
* IRS Direct File
* IRS FAQ page
* Last-minute filing tips
### Avoiding Errors
To minimize the chance of errors on your tax return, follow these tips:
* Triple-check your filing status, names, Social Security numbers, and birthdates to ensure accuracy. * Verify bank account and routing numbers for direct deposit refunds. * Answer the digital asset question on Form 1040 and other relevant forms, including:
* Examples of digital assets: convertible virtual currencies and cryptocurrencies, non-fungible tokens (NFTs). * Income from digital assets is taxable. * Use electronic filing over paper filing to boost accuracy and avoid mathematical errors. The IRS also recommends opting for electronic filing and selecting direct deposit for the fastest and safest way to receive your refund. ### Planning Ahead
Anderson suggests reviewing your tax return and discussing potential changes with your tax preparer to improve your tax position next year. While you may not have time for a lengthy strategy session, your preparer will likely have valuable insights to share with you. “Don’t just put your tax return in a drawer,” Anderson advises. “Most of the tax-savvy moves need to be done by December 31st.”
By taking these last-minute tax filing tips to heart, you can ensure a smoother and less stressful tax filing process.
“While reviewing your tax return, ask your preparer if they would recommend you consider doing something different in order to be in a better tax position next year.”
Don’t wait until the last minute to get your taxes done. By taking the time to review your tax return and seeking guidance from a tax professional, you can ensure a successful tax filing experience. Stay organized and focused, and you’ll be on your way to a stress-free tax filing season. Take advantage of free filing resources and tips to minimize errors and make the most of your tax refund.
- Filing an extension does not exempt you from paying your tax balance by the original deadline.
- Contributing to retirement accounts can reduce your taxable income and get you started on next year’s taxes.
- The IRS offers free filing resources, including IRS Direct File and IRS Free File.
- Triple-check your tax return for accuracy, and use electronic filing to minimize errors.
- Review your tax return and discuss potential changes with your tax preparer to improve your tax position next year.
| Tip | Explanation |
| Filing an extension | You must pay your tax balance by the original deadline, even if you’re filing an extension. |
| Contributing to retirement accounts | You can contribute to retirement accounts until April 15th, and these contributions can reduce your taxable income. |
| IRS resources | The IRS offers free filing resources, including IRS Direct File and IRS Free File, as well as a searchable FAQ page and last-minute filing tips. |
| Avoiding errors | Triple-check your tax return for accuracy, and use electronic filing to minimize errors. |
| Planning ahead | Review your tax return and discuss potential changes with your tax preparer to improve your tax position next year. |
By following these last-minute tax filing tips, you can ensure a smoother and less stressful tax filing process. Remember to stay organized, focused, and informed, and you’ll be on your way to a successful tax filing season.
Don’t wait until the last minute to get your taxes done. By taking the time to review your tax return and seeking guidance from a tax professional, you can ensure a successful tax filing experience.
Stay organized and focused, and you’ll be on your way to a stress-free tax filing season.
Take advantage of free filing resources and tips to minimize errors and make the most of your tax refund.
By following these last-minute tax filing tips, you can ensure a successful tax filing season and get back to focusing on your finances.
Don’t wait until the last minute to get your taxes done.