Reaching the Finish Line
Today is the deadline! If you have not filed already, take a deep breath – it is not the end of the world.
What do I need and how do I file?
Each individual case is different when it comes to the exact documents needed to file your tax return but generally, you will need your SSN, W-2 forms, 1099 forms if unemployed or self-employed, saving records, all eligible deductions such as educational expenses, and tax credits including the child tax credit. The IRS has a more extensive list on its website if you are still unsure about what else is needed. Taxes can be filed either online or on paper but paper filing can take up to 6 months which can be a little too long for those who need or want their returns sooner. Dallas Morning Times & IRS.
If filing without a professional, always make sure to double-check everything. Whether it is your SSN, or tax statements, make sure you are reporting ALL your income. This can include if you had multiple jobs which would lead to multiple W2s or if you have a business that uses electronic services such as Venmo; those amounts need to be combined.
Worse comes to worst
You are human and mistakes are bound to happen at one point or another. The IRS is not an entity to fear and is not going to come storming your front yard over a mistake. If a mistake occurs, they will audit you and ask for more documentation. IRS.
Since today is the deadline, it also means it is the deadline for an extension. If you are struggling to find all the information you need to file your taxes today, simply apply for an extension through a preparer or online. Do not delay in applying for this extension though because it can lead to penalties and interest. Dallas Morning Star. According to the IRS, there could be a penalty of 5% for unpaid taxes for each month that the return is the law. If you do not owe taxes, you do not have anything to worry about regarding receiving a penalty.
Through the Finish Line
Even after you have filed your taxes, it is smart to keep your tax information for several years just in case you get audited by the IRS. Things come up all the time and like before, people make mistakes – things happen.
For any questions regarding taxes, Tax Day, extensions, or even mistakes within your most recent filing, please reach out to the Professionals at The Center for Financial, Legal, & Tax Planning Inc. at (618) 997-3436