Last minute tax tips as April deadline approaches
The race is on to file your taxes.
Time is running out to file your taxes.
The deadline this year is Tuesday, April 17.
According to the IRS, 20% of taxpayers wait until the last couple weeks of the season to file.
If you’re one of those people, Joe Lautigar with H&R Block says you should get organized by gathering the documents you need including income, mortgage and tax documents.
He encourages people to use last year’s return as a benchmark for this year’s return.
You may be wondering, is it too late to contribute to an IRA?
He says it’s not. As long as the money is in your IRA before you file, Lautigar says you can qualify for a last-minute deduction.
“If you're in a 15% tax bracket, you're going to put $6,000 away in an IRA. It's saving you 15% of that $6,000 so that’s a $900 deduction. So the question is whether it’s worth giving up that $6,000 in cash to save $900 on a tax return. It's a personal question. Some people may say yes and some say no,” he told Channel 3.
If you won’t be able to file by the deadline, Lautigar says you’ll have to file an extension but he says you should prepare an estimate and pay what you can right now.
“If you owe, the penalty is 5% for every 30 day period up to 25% so for the next five months that penalty can really add up plus interest at 6%,” said Lautigar.
H&R Block has extended hours from 9:00 a.m. until 8:00 p.m. Monday through Saturday and 12:00 p.m. until 6:00 p.m. on Sundays.
There’s also a drop off service if you don’t have time to wait.