Like last minute Christmas shoppers, Terry Pulford says its annual tradition. As he puts it, "they will come in right until the final hours." Pulford and the other tax professionals at H&R Block see folks walk through the door at the last possible minute to file their taxes. While it's never too late to get started, filing out the forms with a looming deadline can lead to mistakes. As Pulford explains, "I think what you find though is that people who waited till the last minute waited because they weren't prepared, and at the last minute they are still not prepared."
So you've been putting it off but it's time to get those taxes done.Tax experts and the IRS both say there are things that last minute filers do that could at the least delay your refund or worse end up costing you cold hard cash. So what does Terry see most often? Overlooked deductions. While its not something that will get you in trouble, it could increase your tax liability. Terry says "lots of times its not what the government catches, its what they miss out on in regards to deductions." Last minute filers in the rush often overlook simple deductions in effort to get it done. Experts say if your racing you should still allow a little time to claim all you can because as Terry puts it, "the IRS doesn't catch them and say "hey you could have gotten more money this way", so the people just loose out by doing it like that."
A second mistake might be described as the paperwork pitfall. Last minute filers often are scrambling to come up with things like receipts, W-2's, 1099's. Trying to find those hours before the tax deadline often leads to filers frustration, and possible bigger problems according to Pulford, "there can be things they are guessing at or not putting in accurate information." Experts say take some time today, long before the deadline, to round up what you need.
The third mistake maybe the detail drama. The IRS says a surprising number of last minute filers fail to do the basics. Make sure your name, address and social security numbers are correct, sign your forms, include your payment if you owe. If you get this stuff wrong, your processing will be delayed.
And the fourth common error is simply doing nothing. Pulford says often times the anxiety over paying taxes is sometimes unwarranted. His advice is to be proactive. File, do what you can, and make a plan if you find yourself in a jam. Pulford explains "its certainly better to file the extension but you'll also find people who have completed their taxes and maybe they owe and won't file just because they owe. What they need to realize its better to file and send in whatever you can at the time, the IRS will send you a letter asking you what you plan to do about the rest, they will enter a payment agreement and that is better than just trying to ignore the IRS."
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Any tax tips to pass along? Tax nightmares to share? Are you a last minute filer? Share your thoughts and comments below.
