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.
-
Four Surprising Signs You’ll Never Retire (and How to Fix Them)Gearing up to retire? If any of these four signs ring true, you may want to make some changes before you do.
-
Stocks Rise After Trump-Powell Fed Tour: Stock Market TodayNvidia hit a new all-time high intraday, but another renowned semiconductor name and some less iconic stocks were bigger movers Friday.
-
A Financial Planner's Prescription for the Headache of Multiple Retirement AccountsHaving a bunch of retirement accounts can cause unnecessary complications. Consolidation can make it easier to manage your savings and potentially improve investment outcomes.
-
A Guide to Personalizing Your Retirement Plan for Maximum ImpactThis strategy challenges conventional retirement rules of thumb by combining traditional savings, home equity and annuities to provide higher income and liquid savings and help cover long-term care costs.
-
Take It From a Tax Attorney: This Is a Magic Multimillion-Dollar Tax-Saving StrategyThe qualified small business 1202 stock exemption is a $10 million exclusion that seems too good to be true and is often overlooked.
-
Seven Financial Considerations When Downsizing for RetirementWith prices going up on everything, you may be looking for a cheaper place to live. To truly evaluate costs, take a hard look at taxes and intangibles.
-
New SALT Cap Deduction: Unlock Massive Tax Savings With Non-Grantor TrustsThe One Big Beautiful Bill Act's increase of the state and local tax (SALT) deduction cap creates an opportunity to use multiple non-grantor trusts to maximize deductions and enhance estate planning.
-
Five Big Beautiful Bill Changes and How Wealthy Retirees Can BenefitHere's how wealthy retirees can plan for the changes in the new tax legislation, including what it means for tax rates, the SALT cap, charitable giving, estate taxes and other deductions and credits.
-
'Drivers License': A Wealth Strategist Helps Gen Z Hit the RoadFrom student loan debt to a changing job market, this generation has some potholes to navigate. But with those challenges come opportunities.
-
I'm an Investing Expert: This Is How You Can Invest Like Warren BuffettBuffett just invested $15 billion in oil and gas, and you can leverage the same strategy in your IRA to potentially generate 8% to 12% quarterly cash flow while taking advantage of tax benefits that are unavailable in any other investment class.
