Last Minute Income Tax Tips

U.S. income tax form on table with pen and calculatorThe clock is ticking down and even with three extra days, the deadline to file your taxes, April 18, is fast approaching. However, you do not have to fret. You can still meet the deadline confidently and accurately, especially if you work with us here at Tax Matters. We can help you file your taxes quickly and correctly the first time around, so you don’t have to worry about having issues in the future and get them done before the infamous deadline. 

Have what you need to file your income tax

If you have not done so already, you need to get both your income and deduction information together. This means that you will need any and all W-2s and 1099s for income. This includes Form 1099-INT for any interest earned on a bank account you may have. You will also need Form 1098 if you are itemizing your deductions, as well as your Mortgage Interest Statement so that you can deduct the interest paid on your home loan. You should also collect receipts for any and all purchases and payments for your business, healthcare, education, charitable donations, child care, and retirement savings contributions. Moreover, you will also need Social Security numbers for yourself and your spouse, if filing jointly, as well as any children you are claiming as dependents.

Income tax should not be rushed

If you still are not ready and cannot get all of the information together in time, you can file for an automatic extension with Form 4868. This can give you an extra six months to file. However, it does not give you a payment extension. It is recommended that you file something, even if you cannot pay because there is a late-filing penalty of 5 percent per month, which can add up to 25 percent of your total tax bill and that is 10 times greater than the 0.5 percent per month penalty for paying late but filing or seeking an extension time.

There is still time to lower your income taxes

Good news for procrastinators who have not paid yet. There is still time to bring down the amount that you owe the government. You can do so by contributing to your self-employed 401(k), your IRA, and/or your health savings account. However, in order to do so, you must be younger than 70½.

If you need income tax help and are in the El Paso area contact Tax Matters for assistance. They have been helping residents deal with Uncle Sam since 1988.