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When it comes to personal tax advice, making sure your taxes are filed and paid for on time have to be at the top of the list. Outside of that, there are a number of things you can do during the year that can make even the worst procrastinator pleasantly surprised when it comes time to finish and send off their tax return.
Automatic 401K Contributions
You can set up 401K contributions to come automatically out of your regular paychecks so that you do not need to think about them. At the end of the year, you should receive a statement that provides you information about your total contributions.
Individual Retirement Account Contributions
Although the amount of contributions you can make to an IRA changes from time to time, in most years you are able to make Individual Retirement Account contributions up until April 15 and deduct them for the previous tax year. This means that, for example, you can make a IRA contribution on April 15, 2009 and deduct it for the 2008 tax year.
Electronically File
One of the best time savers for procrastinating tax filers is the convenience and practicality of filing federal tax returns electronically. Filing in this manner means you can sit at home at your own computer and avoid the long lines and postage of manually filing and mailing in your return. There are several popular tax preparation software packages available today, and a number of them allow you to file electronically either free or for a small fee. The most popular tax software includes Turbo Tax, TaxAct and the IRS website.
Request an Extension
For real procrastinators, it is not only possible to request an extension, it is almost a requirement. The IRS makes it possible to request an extension directly from their website (www.IRS.gov ) or you can use one of the popular software packages to complete this request. Once the request is received, you automatically are given a six month extension to October 15. However, after that date, your taxes are considered late and subject to any penalties and late fees.
While the IRS does not charge to request an extension on filing your federal taxes, tax payers should be aware that they are required to pay at least 90 percent of any taxes that are due, even if it just an estimate. When filing for an extension, provide a credit card or debit card payment if filing electronically or a check or money order if filing for an extension manually.
An extension can be requested any time up to April 15. Filing after that date invalidates the request and will be denied.
Summary
Ultimately, it is in your best interest to file your federal tax returns, no matter how much of a procrastinator you are, since failing to file your taxes may result in even heftier tax penalties. If you believe that you will never, ever finish your returns on time, file for an extension, but be aware that you will still be expected and required to pay at least 90% of any tax balance that is owed.
Automatic 401K Contributions
You can set up 401K contributions to come automatically out of your regular paychecks so that you do not need to think about them. At the end of the year, you should receive a statement that provides you information about your total contributions.
Individual Retirement Account Contributions
Although the amount of contributions you can make to an IRA changes from time to time, in most years you are able to make Individual Retirement Account contributions up until April 15 and deduct them for the previous tax year. This means that, for example, you can make a IRA contribution on April 15, 2009 and deduct it for the 2008 tax year.
Electronically File
One of the best time savers for procrastinating tax filers is the convenience and practicality of filing federal tax returns electronically. Filing in this manner means you can sit at home at your own computer and avoid the long lines and postage of manually filing and mailing in your return. There are several popular tax preparation software packages available today, and a number of them allow you to file electronically either free or for a small fee. The most popular tax software includes Turbo Tax, TaxAct and the IRS website.
Request an Extension
For real procrastinators, it is not only possible to request an extension, it is almost a requirement. The IRS makes it possible to request an extension directly from their website (www.IRS.gov ) or you can use one of the popular software packages to complete this request. Once the request is received, you automatically are given a six month extension to October 15. However, after that date, your taxes are considered late and subject to any penalties and late fees.
While the IRS does not charge to request an extension on filing your federal taxes, tax payers should be aware that they are required to pay at least 90 percent of any taxes that are due, even if it just an estimate. When filing for an extension, provide a credit card or debit card payment if filing electronically or a check or money order if filing for an extension manually.
An extension can be requested any time up to April 15. Filing after that date invalidates the request and will be denied.
Summary
Ultimately, it is in your best interest to file your federal tax returns, no matter how much of a procrastinator you are, since failing to file your taxes may result in even heftier tax penalties. If you believe that you will never, ever finish your returns on time, file for an extension, but be aware that you will still be expected and required to pay at least 90% of any tax balance that is owed.
