Know When To File
Your annual federal tax return is usually due by Tax Day every year, which is normally April 15. Tax Day can change due to certain circumstances, so it’s important to know when your return is due. If you feel like you need more time to file, you can ask for an extension by filling out Form 4868 and sending it to the IRS on or before the spring deadline. That gives you an additional six months to file your tax return—it’ll be due by Oct. 15.
Plan Ahead for Paying IRS Debt
Settle the debt as soon as possible if you owe the IRS money. The penalty for failing to pay any taxes you might owe is 0.5% per month of the amount of your tax debt, not to exceed 25% of your tax debt overall. If you can’t pay all of what you owe, pay as much as you can by Tax Day to minimize any penalties. Then, ask the IRS for a monthly payment plan called an “installment agreement.” You can set up a payment plan to reduce the financial consequences if you don’t think you can pay off your balance within a few months. No matter your strategy or when you plan to file, prepare a rough draft of your tax return as soon as possible. That will provide you with an idea of how much you owe.
Claim Deductions and Credits, and Check Your Math
Double-check your math and your other tax return information as well if you’re preparing your tax return yourself, including Social Security numbers. Entering erroneous information will delay your refund until the IRS straightens out the situation and determines how much of a refund you have coming to you—or how much you’ll owe. You can spare yourself a great deal of aggravation by purchasing tax-preparation software. Most of these programs will walk you through your tax situation step by step, breaking down each scenario into simple questions. Enter your answers and other information into the program, and the software will prepare your return and e-file it for you. And, in many cases, the software comes with an accuracy guarantee.
Ask for Help and Check the Box
You must fill out the “third-party designee” section on your tax return if you enlist someone’s help to prepare your tax return, and you want that individual to be able to discuss your tax return with the IRS on your behalf. Your tax professional can talk with the IRS about any questions or concerns the agency might have about your return when you do that. Generally, if the person who helped you with your return was a tax professional and you paid them, they must also fill out the section of your return that asks for their identifying information. They must sign and date your return with you and provide their Social Security or taxpayer ID number to the IRS.
Sign Everything for Your Tax Return
You’re required to sign your return because your signature indicates that you’re declaring, under penalty of perjury, that the information contained in it is true and accurate. If you don’t sign your return, it will cause a delay. You must also enter a date on your tax return. It should be the day you actually sign it. Telling the IRS your occupation and telephone number is optional, however.
If You’re Mailing Your Tax Return, Staple It Properly
Staple one copy of each of your W-2 statements to the front of your tax return if you’re mailing in a paper copy. Sort them from lowest to highest by using the attachment sequence number if you must file other schedules and statements with your return. You can find this number in the upper right corner of the form. Mail everything to the correct IRS service center when it’s stapled together. The service center will depend on a variety of factors, such as your state of residence and whether you’re also submitting a payment. The IRS provides a list of its mailing addresses on its website.
Increase Your Tax Withholding or Estimated Payments
Consider increasing your income tax withholding if it turns out that you owe the IRS money when you complete your return. That won’t fix your situation for the current year, but it can help you avoid having the same problem next year. Fill out a new Form W-4 to increase your withholding, and give it to your employer. You can increase your quarterly estimated tax payments if you’re self-employed. No paperwork is required; you can make payments through the IRS website if you pay from a bank account.
Understand How Your Tax Refund Will Work
Your refund might be slightly delayed if you claim the earned income tax credit or the additional child tax credit, even if you do everything right. The Protecting Americans from Tax Hikes (PATH) Act prohibits the IRS from issuing these refunds before mid-February. The idea is to give the IRS time to ensure that all claims for these refundable tax credits are legitimate—another good reason to double-check and ensure that you qualify. Your refund will be delayed until at least February if you file your return before then.
