Last Minute Advice For Tax Procrastinators
Posted by: Brookside Admin
The April 15th deadline for individual tax payers is looming. If you've waited this long to start preparing your taxes, there are some additional concerns that working on a tight deadline introduces. If you're in need of some last minute tax help, call the CPAs at Brown Kinion and Company. At The Motley Fool, a trio of tax experts were asked about last minute advice for tax payers. Here are three key pieces of advice for you this tax season.
- Submit the correct forms
If you're rushing to finish your tax return on time, you may not collect all of the right forms. This is a sure path to an audit. When your employer gives you a tax form, the IRS receives the same information. So, when you fail to submit that same information in your return, it's a clear red flag. Gathering the proper paperwork becomes more complicated when there are investments involved that require a K-1 form. Those often arrive much later than W-2s and are easily forgotten. The easiest way to guard against missing a form or submitting the wrong form is to put together a checklish before you start your return. Or, work with a professional that will help ensure all the proper paperwork is in order.
- Heed the deadline
Most individuals are aware that an extension is available if they're unable to finish their return on time. Getting an extension is typically remarkably easy, but it doesn't release you from your tax burdens completely. You may receive a 6-month extension for your return to be filed, but you still have to pay all taxes owed by April 15th or else you could face interest on unpaid debt and late fees. The extension is still well worth it, however. With an extension granted, interest compiled on unpaid taxes is only half a percent per month. Meanwhile, without an extension, your unpaid tax debt would compile interest at a rate of 5-percent per month.
- Contribute to IRA
The maximum yearly contribution to your IRA that is deductible from your income is $5500 or $6500 for those over age 50. If you haven't yet hit that threshold, you still have time to increase your contributions to your account while also earning more deductions for your 2014 taxes. The IRS allows you to count any IRA contribution made before April 15th backwards to the previous year. In some cases, you may be losing money by not taking advantage of this opportunity.
If you're struggling to finish your taxes on time, or don't know where to begin, contact the experts at Brown Kinion and Company at our Broken Arrow or Tulsa / Bixby office for help.