Smart Moves to Make Before the April 18th Tax Deadline

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The tax deadline is April 18^th which means it’s now crunch time for last-minute filers.  Here are some things to keep in mind as you prepare for Tax Day.

Claim your tax refund

Most people who file a tax return get a refund, so what are you waiting for?  E-file now to claim yours.  This season, the average refund has been around $2,910.  Just think of all the ways you can use the money to improve your finances.  You can pay off debt, build your emergency fund or open a Roth IRA to save for your future.  Either way, the sooner you file, the faster you’ll get your money. 

E-file your taxes

If you’re used to doing your taxes by hand, now is the perfect time to make the switch to e-filing.  During the coronavirus pandemic, the IRS wasn’t accepting paper returns for a while.  As a result, they’re still dealing with a tremendous backlog so it will take much longer for your return to be processed.  E-filed returns haven’t been affected throughout this whole ordeal.  So, you can e-file now and receive IRS acknowledgement within 24 hours.  The fastest and easiest way to do your taxes is with ezTaxReturn.  E-file in 30 minutes or less.

Skip the accountant’s office and file online for FREE

For filers with a simple tax situation, it’s probably not worth it to pay an accountant.  If you’re single, don’t have any children and worked as an employee, you’ll do just fine using online tax software to prepare and file your taxes.  The cost will be a lot less, you can file anytime, and you won’t even have to get dressed.  You may even qualify for a FREE federal return with ezTaxReturn.

Pay your first quarter estimated taxes

Wage-earners and salaried employees typically have taxes withheld from their paycheck and sent to the IRS on their behalf. But, things work differently for freelancers and those who are self-employed. If you expect to owe more than $1,000 in federal taxes for the year, you are required to make quarterly estimated tax payments.  The first quarter payment is due by April 18^th. You must make your estimated payment using Form 1040-ES.

Make last-minute contributions to your IRA for 2022

If you have an individual retirement account (IRA) and didn’t max out the account for 2022, there’s still time to make it happen.  The IRA contribution deadline is April 18^th so try to save as much as you can.  The contribution limit is $6,000 for most savers, $7,000 if you’re aged 50 or older.

File for an extension before the tax deadline

If you know there is absolutely no way you’re going to meet the tax filing deadline, we suggest requesting an extension.  This will give you until October 16^th to file your return without penalty.  However, it doesn’t give you extra time to pay any taxes you owe.  From April 19^th onward, you will begin accumulating penalties and interest.