Last Minute Filing Tips
for 2016 Tax Returns
Small Business
Accounting - Are
you one of the millions of Americans who hasn't filed (or even started) your
taxes yet? With the April 18 tax filing deadline quickly approaching, here is
some last minute tax advice for you.
1. Stop Procrastinating.
Resist the temptation to put off your taxes until the very last minute. It
takes time to prepare accurate returns and additional information may be needed
from you to complete your tax return.
2. Include All Income.
If you had a side job in addition to a regular job, you might have received a
Form 1099-MISC. Make sure you include that income when you file your tax return
because you may owe additional taxes on it. If you forget to include it you may
be liable for penalties and interest on the unreported income.
3. File on Time or
Request an Extension. This year's tax deadline is April 18. If the clock runs
out, you can get an automatic six-month extension, bringing the filing date to
October 16, 2017. You should keep in mind, however, that filing the extension
itself does not give you more time to pay any taxes due. You will still owe
interest on any amount not paid by the April deadline, plus a late-payment
penalty if you have not paid at least 90 percent of your total tax by that
date.
4. Don't Panic If You
Can't Pay. If you can't immediately pay the taxes you owe, there are several
alternatives. You can apply for an IRS installment agreement, suggesting your
own monthly payment amount and due date, and getting a reduced late payment
penalty rate. You also have various options for charging your balance on a
credit card. There is no IRS fee for credit card payments, but processing
companies generally charge a convenience fee. Electronic filers with a balance
due can file early and authorize the government's financial agent to take the
money directly from their checking or savings account on the April due date,
with no fee.
5. Don't forget to check
the box for healthcare coverage. Checking the box on line 61 of Form 1040 shows
that you had healthcare for all 12 months during the tax year (2016). The IRS
will still process your tax return if you forget to check the box but this
applies ONLY to 2016 tax returns--and you're not off the hook for any penalty
you might owe.
6. Sign and Double Check
Your Return. The IRS will not process tax returns that aren't signed, so make
sure that you sign and date your return. You should also double check your
social security number, as well as any electronic payment or direct deposit
numbers, and finally, make sure that your filing status is correct.
Remember: To avoid
delays, get your tax documents to the office as soon as you can.
ABA Tax Accounting offers tax help on various topics. Also, if you'd
like to learn more about our CFO Services please feel free to contact me.
Amare
Berhie, Senior Accountant
(651)
300-4777
