There are plenty of reasons why someone might miss a tax deadline: a family illness, death in the family, professional responsibilities, or poor record keeping. For many individuals, filing late is a perennial event.
Remember: the longer you wait to file your taxes, the more likely you are to make a costly mistake. And the failure to file a tax return on time can result in serious penalties. Even if you can’t afford to pay your taxes, you should contact the IRS to establish a payment plan.
To avoid the stress and complications of filing late, here are five tips to help you file your return with time to spare:
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
1) Keep Your Papers in Good Order. Organizing your documents simplifies the tax preparation process. In fact, I encourage clients to create a tax file and prepare for tax season throughout the year. By maintaining a dedicated tax file with appropriate documents, you can save time and money.
2) Start Early. Typically, you can file tax returns for the previous year on or around January 31st. Those who file their taxes early receive their refunds before the rest of us. If you have a child starting college or currently enrolled in college, recent tax returns are required when submitting the Free Application for Federal Student Aid (FAFSA) and CSS/Financial Aid Profile. Starting early also reduces the likelihood of errors or omissions.
3) Be Prepared at Meetings with Your Tax Preparer. Arrive at your meeting at the predetermined time, and bring all relevant documents. Individuals who show up late to meetings, or fail to bring the appropriate papers, waste both their own time and the time of the tax professional.
4) Don’t Be Afraid to Ask Questions. When it comes to your taxes, there’s no such thing as a stupid question. Don’t be afraid to contact the IRS. Tax specialists can guide through the process and provide helpful advice on the best approach to take.
5) Plan Your Post Office Visit. Most post offices hold special hours on April 15, but not all of them. Check the hours of your local post office branch. If you’re submitting your taxes on the final day, prepare to wait in line for quite a while. Certified mail ensures that return reaches the proper destination.
These tips can make tax time less taxing for you. But if you still fear you might miss the tax deadline in the spring, you should file an extension ASAP. This will provide you with another six months to organize yourself without incurring any additional fees.
Marguerita M. Cheng is the Chief Executive Officer at Blue Ocean Global Wealth. Marguerita is a spokesperson for the AARP Financial Freedom Campaign and is often featured in national publications. As a CFP Board Ambassador, Marguerita helps educate the public, policy makers, and media about the benefits of competent, ethical financial planning. She proudly serves on the FPA National Board of Directors and is a frequent speaker on on financial planning, Social Security, diversity, elder care, and retirement.
-
Stock Market Today: Stocks Gain on Tech, Auto Tariff TalkThe Trump administration said late Friday that it will temporarily halt tariffs on some Chinese tech imports.
-
Sam's Club Plans Aggressive Expansion: Discover Its New LocationsSam's Club expansion plans will open up to 15 new stores each year. Learn where they plan to open in 2025.
-
A Confident Retirement Starts With These Four StrategiesWork your way around income gaps, tax gaffes and Social Security insecurity with some thoughtful planning and analysis.
-
Could You Retire at 59½? Five ConsiderationsWhile some people think they should wait until they're 65 or older to retire, retiring at 59½ could be one of the best decisions for your quality of life.
-
Widow's Penalty: Three Ways to Protect Your FinancesHigher Medicare premiums, smaller Social Security payments, bigger tax bills … Financial changes can hit hard when a spouse dies. How to counter the blow.
-
Reduce Your Retirement Tax Risk With the Three-Bucket StrategySplitting retirement funds into three buckets with distinct tax treatments can help you avoid a nasty tax bill down the line. Here's how the strategy works.
-
Financial Fact vs Fiction: This Roth Conversion Myth Could Cost YouWhile some 'golden rules' stay in style forever, the financial landscape is constantly evolving. Here are five common myths to revisit (with more on the way).
-
Striking Oil in Opportunity Zones: Now Might Be the Best Time to InvestYou could unlock hidden wealth in QOZs with strategic oil and gas investments, potentially combining tax advantages with long-term growth in an essential industry.
-
What Can a Donor-Advised Fund Do for You? (A Lot)DAFs and private foundations go about helping charities (and those who donate) in different ways. Each comes with its own benefits and restrictions to navigate.
-
Estate Planning When You Have International AssetsEstate planning gets tricky when you have assets and/or beneficiaries outside the U.S. To avoid costly inheritance mistakes, it pays to understand the basics.
