We’ve reached the final installment of our Money Mondays series! With a little more than 24 hours to go, today’s article brings us into the home stretch.
For those of us just starting our tax returns, be careful. The most common tax mistakes occur when we are rushed for time. Simple calculations and not double checking basic math are culprits! Consider joining the 9.9 million taxpayers who will file 6 month auto extensions this year. Form 4868 is simple, not even a full page.
The IRS urges people filing extensions to do so electronically. It allows the IRS to process your request faster, and allows you to track your request with a confirmation number. Use the Free File Alliance network of IRS recommended companies.
Did you finalize your taxes only to realize you owe money? Procrastination can be costly. The IRS will be quick to impose late penalties and fines if you pay their bill last. Make payments on your taxes if absolutely necessary. The IRS will work with you”for a fee of course.
We have 366 days until we find ourselves here again. Are you the type of person who will put your taxes out of sight and out of mind? Or will you check in with your tax liabilities mid-year? Whichever route you choose you can avoid stressing about next years taxes.
Keep records and receipts: The key is being able to access your financial documents simply, easily and quickly. It can mean the difference between a few minutes and hours of frustration. Here’s a suggestion on keeping your bank and credit card statements organized. For guidance on how long to keep records, visit this IRS article.
If you will need to make estimated payments calculate them now. Make a plan to make set money aside to pay them. Estimate payments can sneak up on you! Try an ING savings account. Place a little aside regularly to meet your quarterly goal. At least this way you’ll make a little interest on your short term savings.
Review your tax liabilities mid year:
Gather your pay stubs, quarterly statements, and other records of your income and expenses. Make sure you’re planning is on track. If you’ve made more money than anticipated, you may need to increase your remaining estimated payments.
Change your withholding:
Did you find yourself owing a lot this year? Perhaps your withholding was too low. Check with your employer and adjust your W-4.
Many thanks to our fabulous Queercents readers. I hope you’ve found the articles helpful. Here is a quick reference to all ten articles. I appreciate you following our Money Mondays tax season series and have enjoyed the various comments and challenging questions you’ve sent. Thank you!