The September 15 tax deadline has finally arrived. While many people in Fort Lauderdale are breathing a sigh of relief, there are others are who are waking up in the morning in a cold sweat. Filing your taxes at the last minute and heavy anxiety seems to go hand-in-hand. When it comes to filing your taxes, procrastination is not a good option. In many instances, it can be a recipe for disaster. Rushing to file your tax returns can leave you open to mistakes. Down the road, it can also leave you vulnerable to a potential tax audit. Your best option is to file your tax returns as soon as possible to avoid any chaos. But if you are filing your taxes at the last minute, here are some helpful tips.
- Make sure you have all the correct documentation: It may sound simple. But you would be surprised how many people neglect to include all of their tax documents. Perhaps you switched jobs a few times during the past year. Do not forget to include all your W-2 forms. If you have performed any freelance work, make sure to include all your 1099 forms. Do not forget to report any interest earned from bank accounts or money funds. If you own a home, you are required to present a 1098 form which discloses your mortgage interest and paid real estate taxes. In the pre-Digital Age, if you were missing any of these forms, you would have to contact the bank of financial institution. Fortunately, all of these documents can be accessed online.
- Do Not Forget Your Healthcare Information: Tax laws are constantly changing. One of the latest changes concerns the Affordable Care Act. Healthcare providers are required to provide a 1095-B or 1095-C forms to document your coverage.
- File Your Tax Return Electronically: Here is one of the unfortunate truths about filing your taxes at the last minute. You are not alone. Countless people are making appointments or visiting accountants, CPAs or visiting their local H&R Block. Do not get caught in the rat race. Filing your taxes electronically is the fastest method to ensure your return gets to the IRS. Using today’s tax software is also the best way to avoid errors.
- Report Your Contributions: When it comes to reporting your IRA contributions, there are a couple of important rules to remember. Taxpayers can contribute up to $5,500 for an IRA. If you are older than 65, you are eligible to contribute up to $6,500.
- Do Not Avoid Filing Your Taxes: The worst mistake you can make is failing to file your taxes. Even if you cannot afford to pay your tax bill, you must file. Avoiding your tax return only increases your problems. You can face stiff penalties from IRS and begin to accrue unwanted tax debt. If you are having difficulty paying taxes, the IRS does offer solutions and fresh start payment plans to help make the process easier.
Filing your taxes should be a relatively straight-forward process. But if you are having issues, such as a tax audit or back taxes, contact an experienced and reputable Fort Lauderdale tax lawyer to find the best solutions.