Are you prepared for the approaching tax deadline?
The dreaded tax deadline is quickly approaching. Are you prepared?
The tax deadline to file is set for April 15, but there is good news if you truly are not prepared. You have the option to file an automatic extension to give yourself more time.
“If somebody can’t file by April 15, there is a provision that they can get an extension of six months,” Joplin Tax Service owner Pat Kelly said. “It’s an automatic extension by filing a Form 4868. And the automatic is important. That means the IRS doesn’t have to approve it. All (someone has) to do is send in the form by April 15th. What that does is it extends the time to file your return until October 15th without penalty, but it does not extend the time to pay. So if you end up filing an extension and you file, say in July and you owe money, there’s a small penalty for not having paid by April 15, but the big penalty is for not filing on time and you avoid that by filing the automatic extension form.”
If you have everything you need to file your taxes, namely your W2s, 1099s and your social security number for all dependents and filers, then it’s time to start considering using a professional to complete your filing. Why use a professional tax filing service? Good question.
“The big advantage of using a professional is they have experience not only with Internal Revenue Code and the regulations, but they have experience in dealing with problems that might arise,” Kelly said. “You know, something as simple as the IRS makes a mistake and sends you a letter and says you owe more money. Well, a professional probably has dealt with that before—experience is the main thing that you get with dealing with a professional.”
For some people, using a tax service gives peace of mind as opposed to doing your taxes yourself. Even if you use an online filing service and do your taxes yourself, knowing your taxes are done correctly with a professional can avoid any pitfalls.
“If you’re doing your own taxes and you just click one little box wrong on the tax software, it doesn’t know to tell you that you did that,” Kelly said. “I mean, the tax software is not a crystal ball. It’s relying on the information that you give it. So, if you make a mistake, you could lose up to $2,000 credit for a child that otherwise qualifies. Earned income tax credit is another credit that’s based on the situation with the dependents. And if you improperly put information related to a dependent and you don’t essentially get credit for that, I use that term loosely, then you might get less earned income tax credit.”
There are plenty of tax credits for you to take advantage of, and the best way to do that is to talk to a professional. Don’t go into this tax season unprepared.