Tax Tips for Procrastinators
A little procrastination is all right from time to time, but not when it comes to your taxes. April 18, 2023, the deadline to file your taxes, is fast approaching. And while there's still some time to spare, procrastinating can lead to mistakes and missed deductions that could cost you money. The longer you wait, the higher the risk of missing out on potential benefits or facing heavy fines and penalties.
Here are a few tax tips for procrastinators to help you stay organized, save time and money, and make tax filing more manageable and less stressful:
Getting Organized Can Reduce Stress
Getting organized is essential, no matter when you start filing your taxes. Start by gathering all the documents and records needed for your return, such as:
W-2 forms or Wage and Tax Statement
1099 forms or Miscellaneous Income
Bank statements
Mortgage interest statements
Receipts for deductible expenses
Home office documentation
Investment records
Charitable donations records
Education costs
Medical bills
Other relevant documents and records
It's critical to review last year's tax return to help remind yourself of what records and receipts you need to gather. Also, keep a list of any deductions you may have missed the previous year, and be ready to file them this year.
Taking the time to gather and organize your documents now will save you plenty of headaches later, making filing your taxes much easier and less stressful.
While you're at it, you can start reviewing your tax documents for accuracy and completeness. Any errors or omissions can delay the processing of your return and may lead to penalties, so it pays to double-check everything before filing.
Tax Day is an annual event, so start preparing early and stay organized throughout the year. That way, you'll be ready to file your taxes when Tax Day rolls around. Better yet, it can help you file earlier. Plus, you'll have plenty of time to carefully review your return and look for potential deductions that could save you money.
Understanding the Importance of Deadlines
Deadlines are there not to make your life more difficult, but to allow you to get things done properly and on time. The deadline for filing your taxes most likely falls on the same day every year. This should help you create a schedule that works for you and give you enough time to get your taxes in order and file on time without incurring any penalties.
Unfortunately, many procrastinating taxpayers wait until the last minute to file their taxes, only to discover they've missed critical deadlines. Worse, they keep doing this year after year, resulting in costly mistakes and missed deductions.
Any miscalculations or late filings could result in hefty fines, penalties, or even a criminal investigation. Deadlines are placed to ensure you don't incur these fines and penalties, giving you ample time to get your taxes in check and filed correctly. This helps you keep more of your hard-earned money and stay out of trouble.
Remember critical dates and deadlines when it comes to your taxes. This includes the due date for filing tax returns, estimated taxes, local and state taxes, and more. These deadlines could vary and also incur penalties if not met. Note these deadlines, so you don't miss anything and remain compliant with the IRS.
Having everything ready before the deadline leaves you enough time to review your return, look for potential deductions, and make corrections if needed.
Overwhelmed? File for an Extension
Life can get complicated, and you may be too busy to manage your taxes. Plus, getting your taxes in order can be overwhelming and time-consuming. If you can't make the deadline on April 18, you can always file for an extension to buy yourself more time.
According to the IRS, you can request an extension on your tax return by filing Form 4868, or the Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. This automatic extension will give you an additional six months to file your return, giving you until October 16, 2023, to complete it.
Remember that filing for an extension for your tax return does not mean you'll have more time to pay what you owe. The due dates of your taxes remain the same, and you must estimate the taxes due and pay them on or before the April 18 deadline. If you don't pay your taxes on time, you may incur fines, penalties, and interest charges on top of your tax bill.
By filing for an extension, you can get more time to gather the necessary documents, review your tax return, make any corrections to ensure accuracy, and look for potential deductions to lower your tax burden. This allows you to plan and be better prepared before filing your taxes.
Need Help Filing an Extension? Contact Core Group Today
Filing taxes does not need to be a daunting experience. By staying organized and keeping track of every tax deadline, you can avoid filing late and incurring costly mistakes.
If you find yourself in a tight spot and need help filing an extension or understanding the process of tax filings, contact Core Group.
Our team of experienced tax experts can offer guidance on filing taxes, helping you stay compliant with the IRS while ensuring accuracy and reducing mistakes. We have the knowledge and experience to make filing taxes easy, offering quality tax guidance that can save you money.
Contact us today for all your tax needs!