8 Last-minute Tax Ffiling Ttips

Are you someone who usually waits until the last second to file your taxes? According to one survey, about a third of U.S. adults (31%) procrastinate when it comes to filing their taxes. 

One of the main reasons people put off filing is that they find it too complicated and stressful. If that’s how you feel about filing your taxes, there’s good news. There are more resources now than ever to help you file on time and file accurately. 

If you’ve waited until the last minute, here are some important tips that can make it easier to get the job done and do it with less stress.

1. File for free through the IRS

Save money when you file your taxes by using the IRS’s Free File services at IRS.gov. You have two options to choose from:

• Guided software: If your Adjusted Gross Income (AGI) is $84,000 or less, you can use a guided, online program that does calculations for you and helps you file your federal taxes. This software is available for filing taxes in 25 states as well.
• Fillable forms: People at any income level can use the IRS’s fillable forms to file their federal tax returns. 

Alternatively, you may be eligible to use IRS Direct File. This service is also free and you can use it to import some of your previous filing information and complete and submit your tax returns online. There’s also live chat available for assistance.

2. Get help with filing

Need assistance filing your federal taxes? There’s free, in-person help available through two different IRS programs:

• Volunteer Income Tax Assistance (VITA): VITA offers free tax preparation to people who generally make $67,000 or less, people who have disabilities and those who speak limited English. Use this VITA site locator to find a site near you.
• Tax Counseling for the Elderly (TCE): TCE gives tax help to people 60 and older. The IRS-certified staff and volunteers who run TCE sites specialize in dealing with pensions and addressing other retirement-related topics.

3. Don’t hide from tax bills

Don’t put off filing your taxes because you’re afraid of owing money. Waiting to file won’t reduce the amount you owe the IRS. In fact, filing late can cause your tax bill to get even bigger.

The IRS charges a 0.5% Failure to Pay penalty for every month your taxes are overdue, and your fees can add up to as much as 25% of your total unpaid taxes.

If you owe money, but you can’t afford to pay it all at once, check into one of the IRS’s relief options. They include the following:

• Individual payment plan: Depending on your situation, you might qualify for a short-term or long-term payment plan.
• Offer in compromise: If you can’t pay your full bill, you can potentially settle the tax debt for less than what you owe, and/or have your bill collection date delayed through the IRS’s offer in compromise program. This program used to be called Fresh Start. 
• Penalty relief:  If you have a qualifying reason for being late on your payment, you can apply for penalty relief to have the charges removed or reduced.

4. Consider filing an extension

Did tax season sneak up on you? If so, you can get extra time to file. 

The IRS tax deadline is April 15th most years, but if you’re unable to file by that date, you can ask for a six-month extension. The process to request an extension is surprisingly quick and easy, and you can submit a request all the way up to April 15th. 

Just note that while an extension gives you extra time to file, it does not give you extra time to pay your tax bill. So even if you get an extension, any taxes you owe will still be due on April 15th, and they’ll start accruing late penalties on that date.  

5. File electronically

You can file your tax return on paper and send it through the mail. But there are several big reasons to file electronically, or e-File. Here’s why the IRS recommends choosing the e-File option:

• Mail delays: Your package has to be postmarked by the tax-filing due date. If you mail your package last minute, or you accidentally use too little postage, you can risk missing the deadline.
• Security: Filing by mail puts you at risk of having your tax return intercepted. If someone steals these documents, they’ll have access to some of your most sensitive personal information.
• Refund delays: Tax refunds are usually processed faster when you e-File. If you go a step further and set up a direct deposit for your refund, you also avoid the risk of having your refund stolen from the mail.

6. Make the most of your tax refund

When you get a tax refund, you have a unique opportunity to improve your finances. Instead of spending the money as soon as you get it (or even before you get it), plan to put your tax return to good use. 

Here are some ways you can use a tax refund to improve your financial situation:

• Pay off credit cards and other high-interest debt
• Start an emergency savings fund
• Put the money toward your retirement

7. Look at your withholdings

If your refund is big, it could mean your employer is withholding too much money for taxes from each of your paychecks. It’s too late to do anything about it for the prior tax year, but there’s something you can do moving forward.

Consider talking to your employer about reducing your withholdings. If they do make a reduction, you’ll receive a larger amount of money in your paycheck, even if it’s just a little bit. 

Just be careful not to overdo it, since withholding too little from your paycheck can mean owing money to the IRS next time taxes are due.

8. Avoid tax scams next year

For next year, try setting a goal of filing your taxes sooner. You might, for example, mark the tax deadline on your calendar as February 15th instead of April 15th. 

Not only will this give you a better chance of filing your taxes on time, but it can also keep you safer. Why? Because when you wait to file, you run the risk of facing tax-related identity theft.

Tax-related identity theft is a crime that takes place when someone uses your information to file taxes, and it usually involves them trying to intercept your tax refund. The later in the tax season you file, the more likely you are to be a victim of this crime.

So remember, filing your taxes earlier will not only reduce your stress and help you avoid the tax penalties that come with being late, but it can also help you keep your finances safe!