Need to Know Tax Tips

If you are one that waits until the last minute to file your taxes, you are not alone.  For various reasons, many taxpayers wait until the last minute to file. While waiting until the last minute to file buys you additional time, you also may miss or forget something.

Here we will provide you with some need to know tax tips to help make filing your return, a little less taxing:

  • First and foremost, know the tax filing deadline date I know that you might think that this is a given, but this is not always the case.  You would be surprised how many people do not know what the tax filing deadline date is.  For individuals, the filing deadline date is typically April 15th, however, if that date falls on a weekend or a holiday, the filing deadline date is the next business day.  The filing deadline dates for businesses are different from the individual tax filer deadline date.  If you are a business owner, the tax return filing deadline date depends on the structure of your business (Sole proprietorship, LLC, S-Corp., Partnership, or C-Corp).
  • File an extension if necessary Individual tax filers, if you find that you are not able to file your tax return by the usual April 15th tax deadline date, be sure that you file an extension, using the Form 4868 prior to April 15th.  Some states automatically grant a six-month extension to file, however, in some states you will need to request the extension.  Note that filing an extension is only for filing the paperwork, not paying any taxes that are due.  If you owe, you are required to pay by the due date or be penalized.  Note that the IRS does impose failure to pay, as well as failure to file penalties.
  • Have all the necessary documents. Sometimes waiting until the last minute to file is not such a good idea.  The reason is that in general, when we are under pressure to do something, we tend to forget things.  It’s no difference with filing your tax return. Waiting until the last minute to file your tax return gives you more time to misplace your tax documents, like so many people do. Some common documents that you should have when filing your tax return include:
    • If employed and have only one job, you should receive a Form W2.
    • If you are an independent contractor, you should receive at least one Form 1099-Misc. if you were paid $600 or more by the same payer.
    • If you pay a mortgage, you should receive a Form 1098. If not included on the Form 1098, be sure to have your property tax statement available as well.
    • Have health insurance through the marketplace, you should receive a Form 1095 (A, B, or C). This form is required to file your tax return. You also need to know which form you should be receiving.
      • If you are covered by an employer plan, you should receive the Form 1095-C.
      • If you purchase your coverage directly from an insurer, you should receive Form 1095-B.
    • Have a student loan, you should receive a Form 1098-E
    • Withdrew money from a retirement account, you should receive a Form 1099-R

Be sure to have all the personal information as well, social security numbers and birthdates for yourself, as well as dependents.

Keep in mind that these are just a few tips to help to make your life a little less taxing.  Take your time and do it right the first time, otherwise, you will have to end up filing an amended return, which sometimes can be more of a hassle than it is worth.

Keep a look out in your mail box for our tax pouch that will help you consolidate and organize all necessary tax documents!

 

 

 

 

 

 

 

 

 

 

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