Monday marked the first day of spring! With that, you may be thinking ahead to all the changes the season brings: warmer weather, more sunshine and fresh blooms. Or perhaps you're thinking about taxes. Much like spring, tax season comes every year, although without the anticipation or excitement, unless you're expecting a refund. (Which, even though it's fun to get a check in the mail, isn't always a good thing. If you're getting a big refund, that just means you gave the federal government an interest-free loan).
The deadline to file your taxes is Tuesday, April 18. In a recent episode, we talked with a certified financial planner and a certified public accountant to help you navigate the spring joy that is filing your taxes. We’ll have to do an episode soon on another spring joy: seasonal allergies.
If you're a tax pro and don't need the tips, consider passing them along to someone who does — maybe a first-time filer.
Gather your documents. The IRS has a list of documents you might need. Tax preparers can give you one, too. Some common examples are W-2 forms, which should come in the mail from your employer and report your income; student loan interest forms, bank interest forms, and any receipts for things you plan to take as a tax credit or deduction, like medical expenses or charitable donations.
You don't have to pay to file your taxes. You can always download your tax forms from the IRS website, read the instructions, fill everything out, and submit by mail or online. This could be a good option if you have a simple tax situation like one job in one state for the entire year.
Maybe you have a more complicated case (say you moved states, had a baby or started a business), or you'd like to avoid more life admin at all costs. If so, you might consider online software.
If your adjusted gross income is $73,000 or less, you qualify for the IRS Free File program, which allows you to use several tax software programs for free. Find out more at the IRS website.
If you don't qualify for that program, some online tax software is pretty affordable, says Akeiva Ellis, a certified financial planner and co-founder at The Bemused. She uses Free Tax USA; it charges $15 per state, and the federal return is free.
Look into tax credits and deductions. Both are benefits that save you money on taxes. A tax credit lowers your final tax bill; it comes off the top of what you owe. A tax deduction, on the other hand, "reduces the amount of income you have to pay tax on," Akeiva says.
Look at the IRS website to determine which credits and deductions you're eligible for. If you use software, it'll prompt you with questions to help figure this out. So will tax preparers.
You can file an extension — but you still have to pay. If you think you won't make the April 18 deadline this year, you can file an extension with the IRS online. Then you'll have until mid-October to file the forms. But if you owe money, you still need to estimate how much and pay it now, or you might get penalized later.
📨 How to manage the homework of adulthood, from paperwork to repairs.Life seems full of ever-increasing piles of paperwork — bills to pay, appointments to make, forms to sign and carpools to organize. Here's how to conquer the responsibilities on your to-do list so you can get back to your life.
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