April and the spring season are seen as times of renewal, a fresh start — and with this comes the deadline to file your taxes, which is right around the corner! Hopefully you’ve taken advantage of the reductions available earlier on in the year, but we’ve gathered together some last minute tips to help you in the process. Whether veteran or amateur tax filer, it doesn’t hurt to have some extra tips for 2017 tax filing.
Deadlines and Extensions
Feel like you’re racing toward the finish line, and totally unprepared? The number one thing to remember is that even if you aren’t able to pay your taxes due at the time during which you file your returns, it’s better and far less costly than not filing a return at all. Not filing a return for four months after the deadline can result in a 25% fee of your total due. It’s much easier to find a way to extend the deadline instead. In fact, anyone, regardless of high or low income, can file for an automatic 6 month extension. Keep in mind however, that this is not an extension on paying, and the monthly late-payment penalty of 0.5% can start to add up.
Are there any tax breaks left?
Tax breaks are still out there, despite the clock running out on the 2016 tax season. Basically, you can be rewarded for having a savings account. For one, contributing to a traditional IRA (individual retirement account) can reduce your tax payouts by 6500 for those over age 50, and 5500 for those under age 50. Or, if you have a health savings account (a tax-deductible plan available to those enrolled in a high-deductible health plan, or HDHP), any contributions will also be tax deductible.
Looking for answers? Find a professional.
Though harder to find an appointment at this point, there are still ways to get a one on one appointment, through the Volunteer Income Tax Assistance program, which provides volunteer certified by the IRS.
With the level of advanced technology we have at our fingertips, filing electronically is even easier in most ways. You’ll receive your receipt almost immediately, and don’t have to worry about anything getting lost in the mail system.
Looking for more in-detail tips and tricks? Check out the TurboTax website or go straight to the IRS site. Questions about your taxes and insurance? Give us a call at 714-838-1911 and we’ll be happy to walk you through it.