March 13, 2019
Tax Day is Almost Here!
Tax Day is almost here! If you’re preparing to file taxes, read ahead for four quick tax tips to help minimize stress and maximize your tax return – whether you’re planning to file with time to spare or closer to the deadline.
Save time and money: file electronically
Electronic filing programs often have better accuracy as they calculate figures automatically, says the Internal Revenue Service (IRS), which can save you time and alert you of deductions you may be eligible for. You’ll save time and you might even get your tax return a little faster, too. According to the IRS, if you use the direct deposit option when e-filing, you may receive you return in as little as three weeks.
Apply for installment payment agreements
Though many would prefer to receive a refund, there are ways to make the burden a little easier if you owe taxes. If you are unable to pay your entire tax bill by Tax Day, the IRS typically allows taxpayers owing under $50,000 to create an installment payment agreement using an online application or via tax form 9465. Keep in mind that, depending on the option you choose, certain fees, interest or penalties may apply.
File an extension if you need it
If you cannot file your taxes by the deadline, you can file an extension by that date to possibly avoid incurring penalties and fees. An automatic six-month extension is available via tax form 4868. Remember: interest or penalties may continue accruing on any taxes owed. Work on your payment plan right away may help you minimize those expenses.
Make changes to maximize your return
Get ahead of tax season! After filing your taxes, consider making some changes this year that may benefit you next year. Consider contributing money to an individual retirement account (IRA), as you may be able to claim the money you contribute as a deduction on your federal taxes, according to the IRS. Or, consider making donations to charities, as the IRS may allow you to deduct contributions made to eligible organizations.
By following these tips, you may be able to minimize the stress that can come with filing taxes. Be sure to prepare early and remember to file by this year’s deadline.
With these tax tips in your back pocket, consider exploring cost-saving options for protecting your home, personal property, or financial future.
*The brief discussion of taxes on this page may not be complete or current. The laws and regulations are complex and subject to change. For complete details, consult your attorney or tax advisor. Please note that Lorena Crackett and her team are not licensed Certified Public Accountants and are unable to provide tax support.
Lorena Crackett is a new BRBC member and she is available to answer all your tax time questions. You can connect with her via this link - BRBC Business Directory.