Getting last-minute taxes done right

MOSES LAKE — The April 15 tax deadline is just one day away and across the nation there are still those who might not have filed yet. Pillar Rock Accounting’s tax expert Mandy Schuh said it is ideal for taxpayers to have all their tax documents together by April 1, but if there are any issues in making deadline, there are still some steps to take to avoid being late.

“If they’re getting close to the deadline, then they’re going to want to extend, and there are some options out there that they can extend on their own for free,” said Schuh.

There are two ways an individual can request an automatic six-month tax-filing extension, according to the IRS website. The first is to use IRS Free File at IRS.gov/freefile and the second is using File Form 4868, Automatic Extension of Time to File.

The IRS states that taxpayers who can’t file by the April 15 deadline should request an extension before that deadline. This extension gives taxpayers until Oct. 15 to file their taxes.

An extension to file is not an extension to pay taxes, according to the IRS website, and if an individual owes taxes, they should pay them before the due date.

Schuh said taxpayers can still file through their accountants, but many including herself do have a filing fee and this late in the season, the best option is usually to file online. For those who are just filing a W-2, she said the best way is to file through a site such as TurboTax and choose all the free to file options.

The part that usually takes the most time, she said, is helping her clients identify what is a tax deduction and what isn’t and making sure they have all their tax documents together. The documents that a taxpayer must be sure to have is the W-2, their information on any overtime and tips they had throughout the year, a 1099-INT for any bank interest earned and for new homeowners, a 1098 form, which has their mortgage interest and property tax information if they’re paying through escrow.

An escrow is an arrangement in which money, property, documents or other assets are deposited with a neutral third party, according to Cornell Law School’s Legal Information Institute.

“If they’re not paying through escrow, then the property tax that they paid throughout the year, those are tax deductions too,” said Schuh.

Filing by the tax deadline or making an extension in a timely manner is important, as filing late often comes with penalties such as late payment charges, Schuh said.

At the end of the day, she said the best option for taxpayers is to have their documentation together early and file well before the deadline.

“Don’t wait this late,” said Schuh. “Be a friend to your accountant and yourself, don’t wait.”