Tips for All You Last Minute Tax Filers

by: Howard I Schwartz

Tax Tips - http:www.tax-definition.org

The preparation that goes into filing taxes becomes more ardent as April 15 comes closer. According to the Internal Revenue Services (IRS), the last day for filing your taxes is April 15. Most of people who lag behind the schedule because of various reasons have to pay a penalty for filing their returns late.

If youre one of those who remember on April 14 that you have to file taxes the next day, then, understanding the minute instructions, putting all the receipts and documents together becomes very difficult.

According to some people it is better to file the taxes late and pay a penalty than filing it with errors on the last day (you have to talk to your own tax advisor on this comment). Yet, there are ways in which the long lines at the Post Office can be tolerated on the last day.

The lines at the post office are huge and they get bigger by midnight. But before you line up in front of the post office, you need to have the appropriate form to file a return. The federal tax forms are available at all the IRS local offices, the IRS website, and you can also call up the IRS at 1-800-TAX-FORM.

There are things other than just filing your return by standing in the post office lines. Taking a print out of your return that you are about to file also takes a lot of time. So, make sure that you have enough time at your hands before standing in that awful line.

Many taxpayers today go online to file their returns (e-file), as it is a comparatively easier and securer method to file taxes by sitting in the comforts of your home (e-filing - http:www.tax-definition.orge-filing ). Filing your returns online is recommended by a number of taxpayers.

The IRS is expecting more than 84 million individual income tax returns out of which more 50 million returns are expected to be filed online. For filing you taxes online you can log on the IRS website.

Try to avoid some common errors that people are prone to make due to the rush. Some of the errors and mistakes that top the IRS list include:

-Forgetting to include the W-2 with the return.

- Reversing the envelopes for federal return and state return. Putting the documents for one in the other envelope and vice versa.

- Forgetting to sign your return.

- Filling incorrect information like your wrong Social Security Number (SSN), and other things.

- Excluding the deductions that you get on the Lifetime Learning credits, Hope scholarship credits, student loan interests, adoption, child credits, health insurance premiums for the self-employed, and higher education expenses.

Your return should always give the amounts that are shown on the W-2 (wages), 1098 (mortgage interest) and the 1099 (non-employee compensation such as interest and dividends). If the amounts are not the same, then, attach an explanation.

A private delivery service, or a certified mail is the best way in which you can file your taxes through the mail. With certified mail, you will be able to get the PoD or proof of delivery.

You should also review filing the Alternative Minimum Tax, or Form 6251 to avoid any sort of penalties and interests in the future.

Going to any tax professional, or using tax software can ease you job so that in spite of the delay you are in a position to file your returns by the due date - the mighty April 15th!

Tax Tips - http:www.tax-definition.org

Howard Schwartz is a partner in several business strategy groups, including HJ Ventures International, Inc. Howard has worked with hundreds of entrepreneurs worldwide with a focus on writing Business Plans for companies interested in raising capital from Venture Funds and Angel Investors. Howards business plans have secured several million dollars in funding. For more information: http:www.tax-definition.org.

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