5 Last-Minute Tax Tips
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Taxpayers know the tax-filing deadline, but every year individuals around the nation wait until the final hours—and sometimes final minutes—to file. TrustCounsel’s tax lawyers reference a few tips below to help taxpayers manage tax filing under a time crunch. Whether you are filing your taxes yourself, hired a Certified Public Accountant, or retained a tax attorney, here are a few ways to help you file taxes on time:
- E-file. If you want to ensure your taxes are filed before midnight on April 15th and the post office has already closed, you will need to file your returns electronically to submit them on time. E-filing saves time even if you are not filing your taxes during the final hour. By filing electronically your returns are received faster, which means your refund (if any) will be processed faster.
- Hold. Many taxpayers wait to file their taxes because they are expecting to receive a corrected 1099. Corrected 1099s are fairly common, but if a taxpayer files and then receives a corrected form they will need to file a corrected tax return. Prepare as much of your tax return as possible and hold on to it. If you receive a corrected 1099, simply revise your returns before sending them in and avoid the need to formally submit an amended tax return.
- Don’t let the final time before the deadline distract you from taking deductions. Also, don’t the deadline prevent you from complying with new tax rules. Changes to federal home office deductions went into effect, the 2013 tax year was the last year to take the deduction forcontributions made to North Carolina College Savings Plans. Self-employed? Your health insurance premiums are fully deductible for yourself and dependents.
- Pay taxes. If you really do not have enough time to complete your return before April 15th, estimate your taxes to the best of your abilities and pay your taxes by April 15th. Late or underpaid taxes will only cost you more in penalties. Your return can wait if you file for an…
- Extension. When more time is necessary to file a return, you can file an extension and get an additional six months of tax prep time. There is no cost to file an extension, just be sure to pay taxes on time as noted above, and make certain the extension form is filed by April 15th.
