Goodbye holiday season and hello tax season! The days leading up to that mid-April deadline can be stressful, but take a breath, and check out these four need-to-knows before you file. You’ll be glad you did.
Know Your Dates
Let’s start with some great news – you’ll have two extra days to file your taxes this year! April 15 falls on a Sunday, and the following Monday is Emancipation Day in D.C., so this year’s filing deadline is Tuesday, April 17. If you’re not one to wait until the due date, it is expected that the IRS will begin accepting returns as early as January 23.
Business owners of Partnerships or S Corporations, keep in mind that corporate returns are due March 15, not April 17.
Extension To File, Not Extension To Pay
If you think you're going to owe money this year, keep in mind that filing for an extension will only give you more time to file your return. The extension does not give you more time to pay. The tax is still due by the deadline, and you must pay it on time to avoid penalties. If you can’t pay by the deadline, file on time and request an installment agreement.
Don’t File Too Soon
W-2s have to be mailed by January 31, but other documents like 1099-Bs might not be mailed until February 15, so if you sold stocks, etc., make sure to wait for all of the documents before filing. Otherwise, you'll likely have to amend your return later.
If you qualify, it might be a good idea to make IRA/Roth IRA contributions. You have until April 17 this year to contribute. Keep in mind that this is without extensions, so even if you're filing for an extension you still need to make the contribution by April 17.
Want More Advice?
Shoot me an email at Luis@buildabetterfinancialfuture.com, and let’s get started on achieving your financial goals together.
Luis Rosa CFP® EA is the founder of Build a Better Financial Future, LLC. He has been in the financial services industry since he graduated college in 2001. Luis focuses on working with young up and coming professionals who are looking to better position themselves for a successful financial future. In addition to obtaining his securities registrations Series 6, 7, 63, and 66, Luis is also a CERTIFIED FINANCIAL PLANNER™ professional and is enrolled to practice before the IRS. This diverse industry knowledge allows him to best serve his clients by understanding how one financial decision affects the other, allowing him to better guide them toward achieving their goals. To meet and see how Luis may be able to help, contact Luis directly at Luis@buildabetterfinancialfuture.com.