4 Last-Minute Tips for a Smooth Tax Filing
The tax-filing deadline is almost here. Read on for some last-minute tips you might need.
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As of the week ending March 8, the IRS had received more than 62 million tax returns and issued more than 43 million refunds. But since the April 15 deadline hasn't yet arrived, there's a good chance those numbers will grow quite a bit as the season chugs along.
At this point, though, you really only have a short amount of time to complete your taxes. And you might be feeling the pressure. With that in mind, here are a few last-minute tax tips that could help you avoid problems.
1. File your return electronically
If you're someone who's historically filed a tax return on paper, you may be inclined to do so again this year. But you should know that filing electronically may reduce your chances of making an error. And that could lead to your refund arriving sooner, assuming the IRS owes you money.
You should also know that if your adjusted gross income is $79,000 or less, you're eligible to file your taxes electronically for free. Check out this page about IRS free filing to learn more about how to submit your tax return without having to pay.
2. Make sure you're entering the correct Social Security number
If you make a math mistake on your taxes, the IRS will usually try to reconcile an error like that rather than reject your tax return outright. But if you botch your Social Security number, you may have your return rejected.
Do yourself a favor and check that number carefully before submitting your return. Once you've done that, walk away for a few minutes, clear your head, and then check it one last time just to be sure.
3. Double-check your bank account and routing number for direct deposit
If you're due a tax refund from the IRS, signing up for direct deposit is a good way to get that money sooner. But if you botch your bank account details, you might delay your refund substantially.
Make a point to double-check not just your bank account number, but the routing number you put in. If you put in the wrong banking details, what may happen is that the IRS issues your refund to the wrong account. Often, in that case, the receiving bank will reject the deposit and send it back to the IRS, at which point the agency will issue you a check. But all told, that could delay your refund by many weeks.
4. Get an extension if you're down to the wire and won't be done on time
If April 15 is getting closer and you don't think you'll manage to get your tax return done on time, make sure to request an extension. An extension won't give you more time to pay your taxes should you owe money, though. So if you're late paying your 2023 tax bill, you'll incur interest and penalties even with an extension in place.
However, when you owe the IRS money, there's a costly penalty for failing to file a tax return on time. An extension will get you out of that penalty so you can take an extra week or two if needed to finish up.
Filing taxes electronically and checking your numbers carefully could spare you a world of hassle when submitting your 2023 return. And if you don't think you'll make it by April 15, remember that an extension is a fall-back option every taxpayer is entitled to.
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