And don’t forget, tax day is later this year, with a deadline of April 18. We estimate 1.8 million income tax returns this year from both paper and electronic filers.
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A holiday that is usually observed in Washington, D.C., Emancipation Day, falls on April 16.
Myth number one: If you owe money on your taxes, you should wait to file until you can afford to pay.
By properly filing this form, a taxpayer will avoid the late-filing penalty, normally five percent per month based on the unpaid balance that applies to returns filed after the deadline.
Those unable to file by the deadline can file for an extension that gives them until mid-October.
The catch? To gain access to Free File’s online tax software from companies like Jackson Hewitt, Intuit’s (INTU – Get Report) TurboTax, and H&R Block (HRB – Get Report), which will guide you through your income, deductions, and credits, you must go to the IRS website at IRS.gov/freefile rather than the websites of the individual firms. Whether you choose to put it off or do it today, be sure you know the basics of your Form 1040, including your proper filing status, all legitimate dependents, your income (from W-2s, 1099s and payments that didn’t generate tax forms) as well as any capital gains and losses. Of course, if you file electronically, your math is checked automatically and you can’t file until you affirmatively “sign” the return. The IRS has made a big technology push in the past few years, which means moving away from the physical tax forms traditionally found at the public library and toward offering more help and resources online.
Liberty Tax Service will extend its normal business hours from 9 a.m.to midnight on Monday, said shift supervisor Jacqueline Fisher.
SHADY TAX PREPARERS: unscrupulous tax preparers are out there – out to steal and sell your personal information, IRS officials said. Hosting a tax party to file with your friends is a great excuse to get together with friends and enjoy yourselves while you’re filing your taxes.
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Pay up. Although about 75% of taxpayers wind up getting a refund, according to Lisa Greene-Lewis, CPA and tax expert with TurboTax, an extension doesn’t get you off the hook for paying your taxes by Tax Day. This year, however, tax season does not end on its usual date, April 15. He says high-earners should expect they will be audited so stay organized and keep your paperwork. Will it cost you more to make payments on a loan, or is it cheaper to set up an installment plan with the IRS? For those who purchased insurance through the marketplace, form 1095-A is needed in most cases for an accurate return.
