Does tax season give you a case of the Sunday Scaries? For many folks, filing taxes is one of the most dreaded items on their to-do list, but it doesn’t have to be! With proper planning and preparation, filing your taxes can be a breeze. This guide will help you kick the Sunday Scaries to the curb and tackle your taxes with confidence.
Know Your Due Dates
The best way to minimize interest and penalties is to be punctual. While April 15th is typically designated as Tax Day on the calendar, it is just one of several tax due dates. Other common due dates include:
- Estimated Payments – January 15th, April 15th, June 15th and September 15th
- Partnerships and S Corporations – March 15th
- Individual Tax Payments – April 15th
- Extended Partnerships and S Corporations – September 15th
- Extended Individuals – October 15th
File An Extension
It is always a good idea to file an extension, even if you plan to file by the original due date. Why? It protects you from late filing interest and penalties! While it is always best to file on time, life happens. If something unexpected prevents you from filing on time, your extension is your safety net. However, while an extension of time to file is available, payments are due by the original deadline.
Maintain Accurate and Accessible Records
Did you know that the IRS requires all taxpayers to maintain adequate records? Yep! In addition to being a requirement, good recordkeeping can streamline the filing process and help protect you in the event of an IRS audit. Digital records are a great option for taxpayers. They’re easy to store, update, access and share. Be sure to keep backup copies of your documentation and records in case you need them in the future!
Consider Quarterly Estimates
Quarterly estimates are a tax planning tool that allows taxpayers to evaluate their tax situation and make proactive adjustments. While estimates are essential for business owners, high net worth individuals, and contractors, anyone can take advantage of quarterly estimates and reap the following benefits:
- Minimize penalties and interest.
- Easier financial planning for tax liabilities.
- Enhanced decision-making at both the business and personal level.
- Fewer surprises at tax time.
Pay In Full and On Time
No one likes interest and penalties! In addition to interest and penalties for late payments, the IRS may also assess an underpayment penalty. There are a few ways taxpayers can minimize penalties and interest related to payments, including:
- Be proactive: You can’t change the past, but you can plan and change course for the future.
- Evaluate federal withholding on wages: It is best to review your withholding at the start of the year and again if your situation changes. This ensures your withholding is sufficient throughout the year.
- Make estimated payments: Preparing a quarterly estimate and making timely estimated payments are an underpayment penalty’s worst enemy! Estimated payments are especially imperative for taxpayers with income not subject to federal withholding.
Have a Tax Pro in Your Corner
A reputable tax professional is a taxpayer’s best friend! A tax pro can help you stay on top of your taxes and alleviate some of the stress of tax time. While there are different types of tax professionals, CPAs are held to the highest standards and provide a wide variety of services, making them your go-to for all your needs now and in the future. You don’t have to face the IRS alone! With a great tax pro on your side, tackling your taxes is a breeze.
Whether you’re a seasoned filer or first-time filer, taxes can be stressful. Stomp that stress by keeping track of your due dates, filing an extension, keeping good records, paying in full and on time and having a trusted professional in your corner. At Weinstein Spira, our tax professionals leverage their experience and expertise to provide a unique and high-quality service while building meaningful client relationships. Take on your taxes and connect with us today!
