Tax Day is just under one week away. Many people, however, are yet to file their 2018 tax returns with the IRS. While this can be a stressful situation, it does not have to be. With the proper preparation and organization, you can still timely file your tax return before the April 15th deadline. To help you accomplish this, we want to share with you a few last minute considerations for you to keep in mind while preparing your return this tax season.
First, understand what your goals are and evaluate the deductions and credits you may qualify for. Did you know that making small errors while filing can add up to costly mistakes? Failing to claim deductions and credits you are eligible for can result in a tax bill amounting to thousands of dollars. On the other hand, claiming deductions and credits that you are not entitled to can cause the IRS to perform an audit on your particular case, which may result in you being required to pay penalties and back taxes.
Next, gather all necessary paperwork, such as your Social Security card, income statements such as W-2s from employers and any 1099 forms, health coverage information, and bank account information. With a little under one week to go, it may be the most time efficient to use an online software like TurboTax to file your taxes. This easy to navigate platform will guide you through each step of the filing process and can answer any frequently asked questions you may have. Once you hit submit on your online return, the IRS will receive your tax return that same day and can begin processing your return.
Finally, consider making some last minute contributions to your traditional Individual Retirement Account (IRA) if you have one. Those under the age of 50 can contribute up to $5,500 and receive a deduction on that amount. For people over the age of 50, this amount increases to $6,500 of tax-deductible contributions. Health Savings Account (HSA) owners also enjoy unique tax benefits as qualified participants can receive a tax deduction by contributing money to their HSA. Each of these options can help maximize your deductions.
Remember that April 15th is fast approaching. Did this article raise any questions for you? Do you need the assistance of an experienced CPA and Tax Law attorney? Do not hesitate to get in touch with our office so we can help you with your tax-related needs.