6. Determine Whether to Request an Extension
If you need extra time to accomplish all of these tasks, you can file your tax return on October 15th and request an extension. To avoid fines and interest, you must still estimate how much tax you owe and pay it by the standard April deadline.
7. Be Prepared for Any Refund
If you anticipate receiving a tax return, you have numerous options regarding how to handle it.
• You can apply some or all of your refund toward your taxes for the next year. If you normally pay anticipated taxes throughout the year, you may be able to cover the initial quarterly installment.
• The government can either mail you a paper check or deposit your refund straight into your checking or savings account.
• You can put some or all of your return into specific accounts (IRAs, health savings accounts, education savings accounts), or you can use it to buy U.S. savings bonds through TreasuryDirect.
By completing Form 8888, you can also divide your refund among the direct deposit options. You must inform your tax preparer of your intentions so that they can include it on your return.
8. Locate a copy of last year’s tax return
If you hire the same preparer as last year, they will most likely have your past data. If you utilize a new preparer, last year’s return can serve as a reminder to the preparer—and to you—of key items to avoid overlooking. Here are a couple of such examples:
• Dividends and interest: Your previous year’s return should have indicated which banks, mutual funds, and other financial organizations sent you 1099 forms. Make use of that list to ensure that you get 1099s from them again this year (unless you closed those accounts or sold the investments in the meantime).
• Charitable deductions: Even if you did not receive any acknowledgment from the organization, you could still deduct your contributions provided you have a receipt, canceled check, or other documentation.
Examine the list of organizations to which you donated last year to see if you made similar contributions this year. The list can also help you remember to donate to organizations you typically support this year.
