Profitt Report: Last-minute tax filing tips
Procrastinators: you’re in good company! The IRS said they’ve received almost six million fewer returns halfway through this filing season compared with last year.
This year’s tax deadline is April 18.
Crystal Goodeman is the office manager and tax analyst at H&R Block in Saginaw Township. She explains, if you can’t make the tax deadline, you can file for an extension. However, make sure you know how the extension works.
“The thing is, an extension is only time to file paperwork, it is not a time to pay, you still have to pay your balance due by the 18,” Goodeman said.
Which means you’ll be estimating your payment and if you pay less than 90 percent of what you ultimately owe, you’re likely looking at penalties for the unpaid amount. Still, Goodeman says this is a better option than not filing on time.
“The penalty for not filing is a lot greater than it is to owe, so if you owed a thousand dollars and you filed, the penalty per month would only be about five dollars, if you did not file your return, it would be 50 dollars a month,” she said.
Even if you’re in a last-minute rush, don’t forget those important documents: all W2’s, day care expenses, mortgage paperwork, property taxes, etc.
A small headache now will save you a bigger one later and maybe you’ll wind up with a tax return.
Depending on your income, there is free tax help available through the IRS. Click here for more information.
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