Last Minute Taxes - What You Need to Know

The Internal Revenue Service (IRS) is well aware that 20-25% of all Americans are prone to waiting until the last minute to file their taxes. They often wait until the last two weeks before the deadline to prepare their tax returns. The more danger-chasing of taxpayers will even wait until the last week before filing. Last minute taxes are a dangerous game to play with the IRS. If you’re not up to date on when your taxes are due, you might experience several fees and consequences. To get help on your last minute taxes as soon as possible, call or text “YOKE” to 210-980-0355.



What is the new last minute tax deadline?

The new tax filing deadline for Americans is May 17. This extension only applies to individual taxpayers and individuals who pay self employment tax, however. In addition, this extension applies only to federal taxes. You can postpone your federal income tax payments until May 17, 2021 without fear of penalties or interests. The amount owed does not matter. Penalties, interest, and other additions to these taxes will begin to accrue on any remaining unpaid balances after May 17.

To qualify for this new tax deadline, individuals do not need to file any forms or call the IRS. Simply file your taxes as you normally would within the new tax period. This relief does not apply to estimated tax payments that are due on April 15, 2021. Those payments are still due at their normal time. To learn more, click here.

Because the IRS has changed so much in its tax policy due to the COVID-19 pandemic, there is still a lot of information that average people don’t know. There are more opportunities to save money, and even more ways to maximize tax returns. Call or text “YOKE” to 210-980-0355 in order to consult with a tax professional. Let us handle the numbers.

What makes Texas different?

Unlike the rest of the country, the IRS has made a special provision for Texas taxpayers. Frigid temperatures and winter weather have severely impacted residents of Texas and surrounding regions. Power grid failures have left millions without electricity and heat, water treatment plant failures have resulted in contaminated water, and burst pipes have left many pipes running dry.

The IRS has decided to extend that April 15 tax deadline to June 15 so Texas taxpayers can address the current crisis. Taxpayers in other states affected by the winter storms will automatically receive the same filing and payment relief. Only some Texans are covered by this change, however. Others have specialized forms which they must fill out to qualify.

There is still time to file your last minute taxes. To retain peace of mind, utilize professional tax services to ensure these taxes are done accurately while maximizing tax benefits. If you are in a hurry, call or text “YOKE” to 210-980-0355.

Tips for last minute taxes

While there is nothing inherently wrong with waiting, filing last minute taxes should be done right. Prepare in advance by keeping yourself organized throughout the year. Keep all of your important documents and receipts in one place. One way that this can be done is by copying and storing them digitally.

Last minute tax filing mistakes are also inevitable if you work without a professional’s help. Some of the most common mistakes include math errors and incorrectly written account numbers and other financial information.

You can receive refunds faster if you use a direct deposit. The IRS has developed the Where’s My Refund? Tool. With it, taxpayers can check when their refund is due back to them. Because the data is updated daily, it is a very convenient tool for checking your tax refund.

Many American taxpayers are unaware that they can reduce their tax liabilities by paying themselves first. Simply contribute to your tax-exempt retirement accounts, such as Roth IRAs and Roth 401 (k)s. For tax-deferred accounts, consider traditional IRAs and 401 (k)s. Learn more about them here.

If you need more time to pay, there are a multitude of options available. Consult with a tax professional to see if you qualify for an installment agreement with the IRS. You may qualify for a short-term payment plan (paying your taxes within 120 days). Others will qualify for a long-term payment plan (paying in more than  120 days).

Last minute taxes? Hire a pro!

2020 has been a mess for pretty much everyone. The IRS most of all. Since last year, the IRS has been experiencing massive changes in its approach to taxing the American people. Most of these changes stem directly from the COVID-19 pandemic. These are only a few, but a tax pro will be able to identify more and maximize your return. Simply sign up for a free consultation today.

Cryptocurrency Taxes. The rise of crypto over the past year has led the IRS to realize that it must clamp down on this sector. Individuals who have invested in crypto are expected to pay their taxes in full to the federal government. This is also the case for individuals who purchased crypto before 2020.

The Paycheck Protection Program. PPP loans aim to cover varying business expenses during a covered period. Some of these expenses include payroll, insurance premiums, rent, utilities, and mortgage interest. The amount received varies based on the covered period.

Business Meal Deductions. The multitude of stay at home orders, correlating with the rise of food delivery through services such as Uber Eats or GrubHub, led the federal government to make an exception on the deductibility of takeout and delivery meals. This does not mean, however, that the rules around business meals deductions have changed.

The Child Tax Credit. Due to the COVID-19 pandemic, special rules are put into place for the 2020 tax year. The IRS is allowing Americans to choose whichever filing allows them to benefit from the largest Child Tax Credit. You can use your 2019 income or your 2020 income to calculate your tax credit.

If you are in a hurry and need a tax professional as soon as possible, call or text “YOKE” to 210-980-0355.