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The IRS officials said that by March 20 the IRS received more than half of all the individual income tax returns expected for this year.
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As is usually the case every year, 20 to 25 percent of Americans choose to file during the last weeks before the deadline.
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We don’t have a percentage of last day filers but we would like to point out that, although there is nothing inherently wrong with this, procrastinating often leads to mistakes and therefore higher costs and possible delays in the receipt of any expected tax refund.
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Instead of a stressful dash to file your taxes before the deadline which can lead to errors and missed tax credits or deductions, you should seriously consider opting for an extension of time to file rather than filing a tax return full of mistakes. This will give you time to really look at your options and make sure you aren’t leaving valuable deductions out there or making errors that can cost you later.
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The fastest and easiest way to get the extra time is through the Free File link on IRS.gov. Regardless of income, you can use this free service to electronically request an automatic tax-filing extension on Form 4868.
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Filing this form gives you until Oct. 15 to file a return. Remember, to get the extension, you must estimate your tax liability on this form and should also pay any amount due. This is an extension of time to file, it is not an extension for payment.
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| If you prefer to still go ahead and file your return the very last minute, please take some extra few seconds to check for the most common mistakes in filing late returns (and not only) and consider the following tips. |
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- E-filing is easier, faster and more secure than processing your returns via mail (not to mention that you’ll avoid the long line at the post office). Whether you use commercial e-file programs or the IRS Free File one, your tax return errors (especially the math one) will be reduced as the tax software does the calculations, flags common errors and prompts you for missing information. Most states are now offering the e-filing option as well.
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- Electronically or not, make sure you include all your income. Check that you have all your W-2 and 1099 forms.
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- Of course, be as thorough with your 1098 forms too for deductible items such as mortgage interest and tuition payments, otherwise you are likely to overlook credits and deductions that could save you lots of money.
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- When entering information on the tax return, including Social Security numbers, take the time to be sure it is correct and easy to read. Also, check only one filing status and the appropriate exemption boxes. Even if math errors remain common on paper returns only, you would still want to double check the numbers you entered in the tax software before you file your return. Also check that names aren’t misspelled and, if you have chosen to have your refund directly deposited into your bank account, double check that you have entered the account number and the routing number correctly. Otherwise, your refund may end up in someone else's account or returned to the IRS.
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- For many people, taking the standard deduction may seem like the simplest and easiest route when doing taxes, especially if they’re pressed for time. But itemizing your deductions can sometimes save you a bundle so don’t fail to itemize from lack of time.
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- Do not forget to sign and date your return on the appropriate lines. The IRS will not process any return that is missing the appropriate signatures. This goes for e-filed returns as well; for those who are submitting their returns online, you will need a personal identification number or PIN to verify your identity. On the other hand, if you are mailing your return, check if you and your spouse (if you are filing for a joint tax return) have signed and dated all the documents.
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- Attach all required forms. Paper filers need to attach W-2s and other forms that reflect tax withholding, to the front of their returns. Attach all other necessary schedules and forms in the sequence number order shown in the upper right-hand corner.
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- Mail the paper return to the right address. If you’re a paper filer, check IRS.gov or your form instructions for the appropriate address where to file to avoid processing delays.
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- When in doubt, always seek help from a tax professional.
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On a special note, under a newly enacted tax law, taxpayers can choose to treat cash contributions made on or after March 26, 2014, and before midnight on Monday, April 14, 2014, as if made on Dec. 31, 2013. This special provision only applies to charitable cash contributions for the relief of victims of Typhoon Haiyan.
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Eligible contributions can be claimed on either a 2013 or 2014 return, but not both. Contributions made after April 14, 2014, but before the end of this year can only be claimed on a 2014 return. Contributions made by text message, check, credit card or debit card qualify for this special option. Donations charged to a credit card before midnight on April 14, 2014, are eligible contributions even if the credit card bill isn’t paid until after that date. Also, donations made by check are eligible if they are mailed by April 14.
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| For the sake of symmetry, let us end with another statistic: it seems that, on average, it takes us each some 36 work days every year at our job or business to earn enough money to pay our taxes. |
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Please don’t end up paying more taxes than you should because you don’t take enough time precaution or professional help to properly prepare your return.
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