There are plenty of reasons why someone might miss a tax deadline: a family illness, death in the family, professional responsibilities, or poor record keeping. For many individuals, filing late is a perennial event.
Remember: the longer you wait to file your taxes, the more likely you are to make a costly mistake. And the failure to file a tax return on time can result in serious penalties. Even if you can’t afford to pay your taxes, you should contact the IRS to establish a payment plan.
To avoid the stress and complications of filing late, here are five tips to help you file your return with time to spare:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1) Keep Your Papers in Good Order. Organizing your documents simplifies the tax preparation process. In fact, I encourage clients to create a tax file and prepare for tax season throughout the year. By maintaining a dedicated tax file with appropriate documents, you can save time and money.
2) Start Early. Typically, you can file tax returns for the previous year on or around January 31st. Those who file their taxes early receive their refunds before the rest of us. If you have a child starting college or currently enrolled in college, recent tax returns are required when submitting the Free Application for Federal Student Aid (FAFSA) and CSS/Financial Aid Profile. Starting early also reduces the likelihood of errors or omissions.
3) Be Prepared at Meetings with Your Tax Preparer. Arrive at your meeting at the predetermined time, and bring all relevant documents. Individuals who show up late to meetings, or fail to bring the appropriate papers, waste both their own time and the time of the tax professional.
4) Don’t Be Afraid to Ask Questions. When it comes to your taxes, there’s no such thing as a stupid question. Don’t be afraid to contact the IRS. Tax specialists can guide through the process and provide helpful advice on the best approach to take.
5) Plan Your Post Office Visit. Most post offices hold special hours on April 15, but not all of them. Check the hours of your local post office branch. If you’re submitting your taxes on the final day, prepare to wait in line for quite a while. Certified mail ensures that return reaches the proper destination.
These tips can make tax time less taxing for you. But if you still fear you might miss the tax deadline in the spring, you should file an extension ASAP. This will provide you with another six months to organize yourself without incurring any additional fees.
Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. Marguerita is a spokesperson for the AARP Financial Freedom Campaign and is often featured in national publications. As a CFP Board Ambassador, Marguerita helps educate the public, policy makers, and media about the benefits of competent, ethical financial planning. She proudly serves on the FPA National Board of Directors and is a frequent speaker on on financial planning, Social Security, diversity, elder care, and retirement.
-
Stock Market Today: Have We Seen the Bottom for Stocks?Solid first-quarter earnings suggest fundamentals remain solid, and recent price action is encouraging too.
-
Is the GOP Secretly Planning to Raise Taxes on the Rich?Tax Reform As high-stakes tax reform talks resume on Capitol Hill, questions are swirling about what Republicans and President Trump will do.
-
Social Security Is Taxable, But There Are WorkaroundsIf you're strategic about your retirement account withdrawals, you can potentially minimize the taxes you'll pay on your Social Security benefits.
-
Will My Children Inherit Too Much?If you worry about how your children will handle an inheritance, you're not alone. Luckily, you have options — from lifetime gifting to trusts — that can help.
-
Four Takeaways From Filing Your Taxes to Boost Your Financial FutureNow that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?
-
First 100 Days: Trump's Impact on Your FinancesHere are some opportunities to consider regarding investing, interest rates and tax cuts as the financial landscape shifts under the new administration.
-
What Would Happen if You Put Your Tax Refund in an IRA?Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000.
-
A QLAC Does So Much More Than Simply Defer TaxesHere are the multiple ways you can use a QLAC, from managing retirement risks to creating income for specific retirement needs and wants.
-
Navigating Annuity Taxation: A Guide for Financial AdvisersUnderstanding the essentials of taxation in retirement income strategies involving annuities helps ensure positive outcomes for clients.
-
A Confident Retirement Starts With These Four StrategiesWork your way around income gaps, tax gaffes and Social Security insecurity with some thoughtful planning and analysis.
