More Time to File, More Time to Procrastinate
Yes, this year taxpayers have an extra 3 days to get their taxes filed or to file for an extension. And whenever a procrastinator is given more time, they will inevitably stay true to their nature and put off filing until the very last minute.
This behavior is so well known to professional tax preparers and firms that the Wall Street Journal recently published an entire article to help ease the last-minute rush for those scrambling to meet the deadline.
Besides talking about a new form that establishes whether or not you had health care coverage, the article offered a few tax saving moves. “Most steps to reduce 2015 taxes had to be taken by the end of last year, but a few options remain. Many taxpayers still can open or fund individual retirement accounts, or IRAs, and receive a tax deduction for 2015, with contributions of up to $5,500 ($6,500 for people 50 and older). The deadline for making contributions to IRAs is the April due date. For more details on contribution limits and other issues, see IRS Publication 590-A. Roth IRA contributions aren’t deductible, but they can provide future tax benefits.”
Important to know as well, you can deduct allowable contributions to Health Savings Accounts made by the April due date, but only if the account was set up by the end of 2015.
If you’re still waiting to receive records or dealing with other life issues, according to the Wall Street Journal, “Taxpayers who file Form 4868 get an extra six months to file taxes, but the form must be submitted by the April due date. Taxpayers can either file it on paper or e-file through a tax-prep service (like Taxation Solutions) or the IRS’s website.”
If you are filing your own taxes and request an extension, keep in mind that an extension to file the return isn’t an extension to pay taxes due. To avoid late-payment penalties, you must pay 90% of their 2015 taxes by the due date. For more details, see IRS Publication 505. If you need help, give Taxation Solutions a call. We help procrastinators out of tax trouble all the time.