Tax Day is April 18, the last day to file 2015 income tax returns. As the season winds down, you have two choices. File your taxes ASAP or file an extension. Check out the following tax tips to help you decide.
- Get organized. Gather your tax documents and receipts. Use this checklist so you don’t leave anything out. You’ll also need personal information for you and your dependents including birthdays, social security numbers, and driver’s licenses. Have your bank information on hand if you wish to opt for direct deposit.
- Know your qualifications. Identify the credits and deductions you qualify for. If you were not covered under a healthcare plan last year, know how the Affordable Care Act impacts your return.
- File electronically. Online tax preparation is fast, easy to use, and with DIY Tax, 100% free. The calculations are done for you, helping to avoid significant errors. Plus, if you choose direct deposit, you can receive your refund in two weeks or less!
- Check your work. Even though time is running out, don’t rush when inputting information and double check your entries. Even small mistakes on your return could lead to a big headache down the road.
- Don’t Panic! If you can’t file by Tax Day, you can file an extension. The IRS will grant you a six month extension to file and submit any necessary paperwork to the IRS.
- Pay now. Just remember, if you file an extension and owe the IRS, this does not mean you have extra time to pay. Estimate your tax liability and pay what you owe by April 18, or face interest and penalties.
- File Form 4868. This form is titled Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, but don’t let the long name scare you. It’s simple to complete and can be filed online with DIY Tax.
- Amend your return. If you realize you made a mistake on your return after April 18, don’t worry too much. As soon as you realize your error, file Form 1040X to correct information like filing status, dependents, income, deductions or credits. You can file an amendment on DIY Tax too!