Good news for tax procrastinators: You have a little more time than you think to file your federal income tax forms. This includes 2017 individual income tax returns normally due on April 17, 2018.
Still, the deadline is creeping up. It also includes the fourth quarter estimated tax payment normally due on January 16, 2018. Then, subtract this year's withholdings and estimated payments you made over the course of the year, and send the difference to the IRS this year.
Felder-Ruiz, who worked for the N.J. State Police as a public safety dispatcher for approximately two years and is now a firefighter for in Plainfield, works as a tax preparer at GOTA. They'll need to wait because they don't have the information necessary to compute their tax obligation. While it tends to be common knowledge that charitable contributions are deductible, so is your mileage to a volunteer job, a secondhand store to drop off a donation, or to medical appointments.
The biggest mistakes people make is not having all of their documentation. About 14 million Americans will get an extension this year, the IRS said. And along with those forms, Mann also recommends compiling all your log-in information for applicable websites, like your company's intranet or a student loan lender, so you can access the information if you misplace some paperwork.
Be careful with Roth conversions: If your tax bracket is dropping, this year could be an excellent time to convert your traditional IRA into a Roth, according to Ed Slott, CPA and IRA expert. But there's a reason this should be your a year ago of last-minute filing.
"Before you respond to them, before you give out any sorts of personal information, even things like your name, date of birth, especially social security number, don't give that information out unless you can absolutely verify that you're speaking with someone that's from the IRS", said Shifflett.
But most importantly, filing early helps cut down on the risk for identity theft by essentially beating the criminals to the punch.
There are a lot of changes ahead for the 2018 tax year because of the tax law that passed late last year. Certain deadlines falling on or after December 4, 2017 and before April 30, 2018, may be granted additional time to file through April 30, 2018. That means almost 50 million taxpayers have either spent the last week scrambling to locate key documents and file their returns, or have scrambled to locate key documents and instead filed for an extension. After doing so, you may want to adjust your W-4 at work.
The most popular planned use of tax refunds, coming in at 43%, is adding the money to their savings.
If that's not detail enough for you, you can track when the IRS expects to direct deposit or mail yours by using the IRS' "Where's my refund?" tool, which is updated daily. The IRS reminds taxpayers many financial institutions do not process payments on weekends or holidays, which can affect when refunds reach taxpayers. "Figure out why, and adjust your withholdings or exemptions".