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9 Tax Tips for Last-Minute October Filers

10/10/2017

Monday is October 16th and frantic tax filers of late returns will be looking for any means possible to pay less to Uncle Sam.

The following tips should help you file your return and officially close this tax reporting year:

If you are a victim of a natural disaster, the IRS usually extends the filing of these tax returns. You can check to see if you are eligible and what the deadlines are at IRS Tax Relief in Disaster Situations page.
E-file your tax return. It’s the fastest way to ensure the IRS receives and accepts your return today. However, if you are too close to the deadline, find a late night post office and mail in your return. You do not want any internet or tax software problems preventing you from filing on time.
On the off chance that you want to file on paper, make sure that you know ahead of time which post offices will be open until midnight. This way you will know precisely where to go. Anticipate long lines, go at least one hour before closing time.
If you don’t have all the forms needed to complete your return, you still have to file. Make reasonable assumptions of the missing items, and document those assumptions. If you miss the October 16th deadline, you will be subject to the 5% monthly late filing penalty, up to a maximum of 25% of the tax due. You definitely do not want to pay Uncle Sam more than you have to.
Once you have received all the missing information, file an amended return. You have up to three years to send the IRS an amended return after you file your first return.
If you need professional help, make your appointment NOW! Tax accountants are busy now too. Expect to pay extra for on-time last-minute tax filings.
If a payment is due with your return, use IRS Direct Pay. It directly debits your account and provides you confirmation that IRS has received your payment. Best of all the process is FREE!
If you don’t have all funds to make payment, send the IRS whatever you can. It’s better to make a partial payment then no payment at all. If you can get the remaining balance to the IRS within 90 days, send it in and wait for a letter if they decide to assess penalties. If you need more time than this, call the IRS to set-up an installment plan. Please note an installment plan has additional costs involved.
Keep a secure copy of your tax return, and all documents such as W-2s, 1099s, and 1098T forms used to complete your tax return. Also, keep a copy of all IRS payments receipts.

The most critical thing you have to do is to file. Try not to put it off because you are nervous. Once you file your tax return, the anxiety is off.

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Year-End Tax Tips to Save You Money!

10/3/2017

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Your year-end tax planning can be extremely important when tax season rolls around. When you’re setting up your tax planning before year-end, be sure to include these two things to help lower your 2017 tax bill.

Open an HSA
If, like most self-employed people, you pay for your own health insurance, consider opening a Health Savings Account (HSA). An HSA is like a health IRA that is coupled with a health insurance policy with a high deductible. You can deduct contributions to your HSA and then use the money to pay almost any uninsured health-related expense. And you don’t have to pay any taxes on these withdrawals. For 2017, individuals can contribute up to $3,400 and family plans up to $6,750 to their HSAs (people over 55 can contribute $1,000 extra). If you set up your HSA and contribute by December 31, 2017, you can make a full year’s worth of deductible HSA contributions for 2017.

Donate to Charity
If you itemize your deductions, you’ll lower your 2017 income taxes by donating to charity by the end of the year. You can donate money, property, or both, to any qualified charity and take a deduction. If a charity has obtained a determination letter from the IRS recognizing its status as a 501(c)(3) public charity, then it is qualified for tax purposes and donations to it are deductible. Many nonprofits include copies of their IRS determination letter on their website and their taxpayer identification number on fundraising solicitations so donors know they can deduct donations to their organization. The only 501(c)(3) organizations that are automatically considered qualified organizations (without a determination letter from the IRS) are churches and other religious organizations. Make sure to keep records of all your donations.

The IRS maintains a database of qualified organizations, which is available to the public on its website. Other organizations maintain even more extensive lists of nonprofits. For example, the website GuideStar lists over 1.5 million nonprofits.

For more tax tips like these, download a copy of our year-end tax savings newsletter.

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9 Tax Tips for Last-Minute October Filers

Year-End Tax Tips to Save You Money!

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