Tax Extension: Tips to file your taxes easily and accurately before October 17

Here are some pieces of last-minute tax-filing advice that will make it simple and accurate for you to get them in by the due date.

Gather your documents in one place

Make sure you have all the required paperwork on hand when you sit down to file your taxes, including W-2s, 1099s, receipts for expenses, mortgage interest, and the social security numbers of your children.

E-file online

You enjoy the convenience of easily filing your taxes using any device, whenever you want, with TurboTax. By taking a picture of your W-2 with your phone or tablet, you can quickly get started on your taxes.

You’ll be able to watch as your information is safely entered into the appropriate tax forms without any data entering. You can begin filing your taxes on your phone, take a break, and then finish them on a computer.

You can save time and money by preparing your taxes online rather than having to leave the house.

E-file with direct deposit

The quickest way to receive a tax refund if you expect one is to e-file with direct deposit.

When you e-file with direct deposit, the IRS anticipates that 9/10 tax refunds will be issued within 21 days or less of acceptance, as opposed to the usual six to eight weeks for paper-filed tax returns, which can now take longer.

Verify crucial information twice

When doing your taxes, check that you have the correct Social Security numbers.

Correct Social Security numbers are necessary to qualify for beneficial tax credits and deductions.

Know the tax benefits for dependents

Dependents may qualify for substantial tax credits and deductions. You should gather your dependents’ relevant receipts, such as those for daycare and even summer camp, as you could be able to claim the Child and Dependent Care Credit.

Remember that if you have three or more children, you may also qualify for the Child Tax Credit as well as the Earned Income Tax Credit, which is worth up to 6,728 dollars in 2021.

The Other Dependent Credit, which is worth 500 dollars, is also available for supporting non-child dependents like your parents or grandparents.

Remember the things you did last year

Although tax reform will encourage more taxpayers to claim the standard deduction rather than itemised deductions (TurboTax estimates and the IRS verified roughly 90 percent), incorporating a few more receipts for itemised deductions may help you surpass the basic deduction and reduce your tax obligation.

Don’t forget to account for any annual charitable donations

Beginning with tax year 2021, if you use the standard deduction and are married filing jointly, you can deduct up to 600 dollars per tax return of qualifying cash donations, or up to 300 dollars per tax return for any other filing status.

If you owe, file

You will avoid a failure-to-file penalty of 5 percent per month of the unpaid tax liability if you filed a tax extension and electronically filed your taxes before the deadline of October 15.

When you submit your taxes, you can request an instalment arrangement from the IRS even if you owe money. You can pay off your tax bill over a six-year period if you get into an instalment plan.

Keep in mind that the IRS just announced a COVID penalty reduction for a few 2019 and 2020 individual and corporate tax returns filed after the deadline.

Relief is available for penalties for failing to file, which are normally assessed at a rate of 5 percent per month up to 25 percent of any unpaid tax at the time tax returns are due.

Any qualified 2019 or 2020 individual tax returns must be filed before September 30, 2022, in order to be eligible. By the end of September, the IRS will provide refunds or credits if penalties for those tax years have already been paid.