The income tax season for the tax year 2022 ends April 18, 2023. While most have already wrapped up their 2022 tax return, some are still a work in progress. The last-minute rush leads to added stress, costly mistakes on your tax return, and lost dollars.
But worry not! Our last-minute tax filing tips can help you stay sorted and prepared for the upcoming Tax Day – while helping you save some cash along the way.
1 Gather and Organize All Your Tax Documents and Financial Records
Make sure you have all the necessary documents you need to file your taxes. This includes your W-2s, 1099s, and any other income documents and tax break receipts. Use your last year’s return as the starting point and ensure you have all the required documents to prepare your individual tax return. An
expert tax consultant can help you stay sorted and prepared.
2 Maximize Your Contributions
Double-check your return for deductions. Have you utilized your tax breaks to their full potential? If you have some cash in hand, max out your contributions for maximum tax savings. Here are some last-minute ideas to reduce your taxes:
- Make an IRA contribution: The last date to make an IRA contribution is 18th April. So make the most of it. If you haven’t maxed out your IRA contribution, do it now. You can contribute up to $6,000 individually and an extra $1,000 in catch-up contributions if 50 or older.
- Contribute to your health savings account: You can even reduce your tax liability by contributing to your health savings account (HSA). The contribution limit is $3,650 for individuals and $7,300 for families. People 55 and above can add an extra $1,000 to their contributions.
- Add side hustle expenses: In case you forgot it, your side hustle can save you some taxes too. So, if you have incurred an expense to start or sustain your side business, make sure to deduct the amount from your income.
3 File Your Taxes on Time
If you owe taxes, make sure to pay them with your return. Failing to meet your tax obligations can lead to fines and penalties. IRS charges a failure-to-pay penalty of 0.5% of the unpaid tax per month.
So, to avoid late payment charges, file your returns on the due date and pay your taxes on time. If the tax amount is high and you can’t pay in full, you can even
apply for a payment plan to pay off your balance over time. It will save you from future tax penalties too.
4 E-File for Quicker Refunds
Choose to e-file your return this year. Not only will you be able to get your IRS documents faster, but you can also
avoid last-minute tax mistakes and speed up your refund process.
Even if you’re not expecting a refund, e-filing can help in the prompt processing of your return.
5 Connect With a Certified Tax Consultant
While you can choose to do your taxes yourself, a certified tax consultant brings in additional benefits and can make the whole tax-filing process less stressful, especially when Tax Day is fast approaching. With absolute knowledge of the state and federal tax laws and applicable deductions, your CPA can help you navigate tax deductions and create profitable
tax preparation strategies to maximize your refunds and returns. They can even help you with next-year tax planning as well as assist you if an IRS audit is ordered. But, keep in mind, if you need help if your taxes, connect with a seasoned CPA right away. CPAs are busy professionals and, due to rush, might turn down last-minute requests. So if you need help with your taxes, connect with an experienced tax consultant right away!
At Quantum Tax Consultants, we make Tax Day seamlessly easy for you. As your preferred partner, we work up against the clock to help you offset your liabilities, file accurately, and save the most of your money. Our professional tax services are tailored to your individualized needs and guarantee maximum refunds and absolute peace of mind.
Connect with us for a free consultation and file your returns with complete confidence.
