Tax season is upon us, and if you’re like most people, you may be feeling a bit stressed out about getting your taxes done on time. With the deadline approaching, it’s important to take some last minute steps to make sure you’re not leaving any money on the table and that you’re prepared in case the IRS decides to audit you.
Here are some last minute tax tips to help you out:
File for an extension if necessary
If you’re not going to be able to file your taxes by this year’s April 18th deadline, it’s important to file for an extension. This will give you an extra six months to get your taxes done. Keep in mind that while an extension gives you more time to file, it does not give you more time to pay any taxes owed. So, if you think you’re going to owe taxes, you should still make a payment by the April tax deadline to avoid any penalties.
Take advantage of deductions and credits
Make sure you’re taking advantage of all the deductions and credits you’re eligible for. This could include things like charitable contributions, student loan interest, and home office deductions. Every deduction and credit you claim could mean more money in your pocket.
Contribute to an IRA
If you haven’t yet contributed to an IRA for the current tax year, you still have time. Contributions made before the April deadline can be counted toward your current tax year. IRA contributions are also deductible, which means they could lower your taxable income.
Double-check your math and information
Make sure you double-check your math and information before submitting your tax return. Simple errors could cause delays or even trigger an audit. This includes making sure you have the correct Social Security numbers for yourself, your spouse, and your dependents.
Be prepared for an audit
While most people won’t be audited, it’s always a possibility. If you are audited, it’s important to be prepared. Make sure you have all the necessary documentation and information to support your claims. This could include receipts, bank statements, and other financial records.
Know your rights and responsibilities
If you do end up dealing with the IRS, it’s important to know your rights and responsibilities. The IRS has a lot of power, but you still have certain rights as a taxpayer. For example, you have the right to representation, the right to appeal, and the right to privacy.
Dealing with the IRS can be intimidating, but it’s important to remember that they’re just doing their job. If you’re honest and forthcoming with them, they’re more likely to work with you to resolve any issues.
Get help if you need it
If you’re feeling overwhelmed or unsure about your taxes, don’t be afraid to get help. There are plenty of resources available, including tax preparers, accountants, and tax software. These resources can help ensure you’re getting the most out of your tax return while also minimizing the risk of any mistakes or penalties.
It’s important to remember while tax season can be stressful, there are plenty of last minute tax tips and strategies you can use to make the process a bit easier. By taking advantage of deductions and credits, double-checking your information, and being prepared for an audit, you can help ensure that your taxes are done right. And if you do end up dealing with the IRS, remember that you have rights and responsibilities as a taxpayer, and that there are plenty of resources available to help you through the process. If you’re looking to make a plan that will help you prepare for taxes (and more of life’s inevitable expenses) schedule a free call with one of our Certified Financial Planners here at Bannerman Wealth.