5 Last-Minute Tax Tips

As April 15th continues barrelling towards us, here are five last-minute tax tips to help you get through the season:

1. 2008 stimulus payments are not taxable.  We mentioned this previously, but this is a common mistake, so remember that you do not need to include your stimulus payments as taxable income on either your federal or state tax returns.
2. Give your return one final review.  Review your tax ID number(s), recalculate your figures, and make sure all questions have been resolved.  An error on your tax return could be an unwanted headache and cause a delay in your tax refund.  Taking an extra 15 minutes to double-check your work now could end up saving you hours later.
3. E-file your tax returns rather than mail them.  Choosing to file electronically rather than filing a paper return results in faster processing and fewer human errors.  Most e-file services are safe and secure, but visit the IRS web site to see their list of authorized e-file providers.
4. Get your refund through Direct Deposit.  By adding the requested bank account information on page 2 of your Form 1040, you should receive your refund weeks faster than requesting a check.  Isn’t getting your refund faster always a good thing?
5. File an extension, but remember to pay what you owe.  If you won’t be able to file by April 15th, make sure you request an extension with Form 2350.  However, remember that if you think you will owe any tax, make sure you send in a check (or electronic payment) with the form, since an extension to file is not an extension to pay and any late payment may result in interest and late fees.  If you know you owe and are not able to pay the IRS by the filing deadline, contact the Taxpayer Advocate Service to determine the appropriate next steps.

If you have any other tax questions, feel free to ask them in the comments section and I’ll get back to you ASAP.

- Matt

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