It’s the final countdown!
The federal tax filing deadline, as well as most state tax filing, is tomorrow – April 18, 2023. If you have yet to file, you may feel completely stressed – understandably so. But believe it or not, you still have time to get things together. At South Shore Accounting and Tax Services, we are here to help. Read the following five tips to help you successfully meet the tax filing deadline.
- Breathe and Be Patient With Tax Filing
So you’ve procrastinated. There’s not much you can do about that. But you CAN take a deep breath, own it, and then take action. It may make you feel better to know that you are not alone – filing taxes can be the cause of great stress, especially if you know – or at least have a good idea – that you will have to pay something. Again, there’s not much you can do about that. The most important step you can take is to just do it – jump in the deep end and begin the filing process (even if it feels like you’re treading water).
- Gather All the Necessary Documents
Hopefully, you’ve kept your 2022 tax documents in the same location as they arrived in the mail. These may include:
- W2s – form from your employer, showing both your gross and net income
- 1099 – indicates other sources of income, such as dividends and interest. This form is also used to report any freelance or contract work you’ve done.
- 1098 – as long as you’ve paid at least $600 of interest on your mortgage in 2022, you should have this form
- 1098-E – shows the interest you’ve paid on your federal student loans
- 1098 -T – indicates the tuition you paid in 2022
- 1095 – show health insurance coverage for you and any dependents
- Receipts for any charitable donations (clothing and household items, donations to non-profit organizations, etc)
If you think you should have a certain document but can’t locate it, most of these forms can be accessed and printed by logging into the lender’s site.Â
- File Even if You Can’t Pay Your Tax Bill
Don’t let the fear of an inability to pay be a barrier between you and the tax-filing deadline – there are penalties for missing it. While filing late has its own 5 percent fee, capped at 25 percent, unpaid taxes come with just 0.5% in monthly charges until they’re settled up. So if you owe, try paying what you can when submitting your return. Additionally, the IRS states that even attempting partial payment is better than nothing. Don’t add more stress to your life than necessary.
- Beware of Careless Mistakes
This is a common scenario – but it doesn’t have to be. Tax season is already stressful enough, but when you’ve procrastinated your filing until the last minute, that stress is heightened – which often results in careless errors being made. One of the most common mistakes is related to incorrect Social Security Numbers. Even if you’ve hired an accounting and tax services company, they won’t know if you give them the wrong social security number, resulting in your filing being flagged, and often, an audit. So again, take a deep breath, and make sure your numbers are correct.
3. File Even if You Can’t Pay Your Tax Bill
Don’t let the fear of an inability to pay be a barrier between you and the tax-filing deadline – there are penalties for missing it. While filing late has its own 5 percent fee, capped at 25 percent, unpaid taxes come with just 0.5% in monthly charges until they’re settled up. So if you owe, try paying what you can when submitting your return. Additionally, the IRS states that even attempting partial payment is better than nothing. Don’t add more stress to your life than necessary.
4. Â Beware of Careless Mistakes
This is a common scenario – but it doesn’t have to be. Tax season is already stressful enough, but when you’ve procrastinated your filing until the last minute, that stress is heightened – which often results in careless errors being made. One of the most common mistakes is related to incorrect Social Security Numbers. Even if you’ve hired an accounting and tax services company, they won’t know if you give them the wrong social security number, resulting in your filing being flagged, and often, an audit. So again, take a deep breath, and make sure your numbers are correct.
5. Â Hire an Accounting and Tax Service Company
You already know that filing your 2022 taxes at this late date is going to take some real effort. It may behoove you to hire an experienced accounting and tax service – which can make all the difference as you’re scrambling and stressed and completely overwhelmed by trying to take advantage of tax breaks, thus reducing your annual payments. Look for a service that takes a consultative approach, asking plenty of questions about your current financial situation and goals in order to devise strategies that are tailored specifically towards long-term success. We have a proven track record of creating financial strategies that propel our clients toward their financial goals – including filing their taxes with minimum payouts and maximum returns.
At South Shore Accounting and Tax Services, we are here to assist our clients – both big and small -Â in meeting their financial goals. From personal accounting and tax services, to complex corporate accounting requirements, we are the go-to accounting and tax service dedicated to assisting all of our clients with their financial needs. Contact us immediately for assistance in keeping your financial future bright and healthy!