Where does the time go? Last I checked the year had only just begun. Now we're deep into March and we're only three weeks away from Tax Day 2018. This year's edition of tax time has been interesting for me so far as my father informed me just last week that he will not be doing my return but, instead, simply be looking it over before I send it off. Because of this curveball, I've had to start preparing a bit more for the big day (I plan on filing this weekend... although I said the same last weekend). So, with these tips being top of mind, here are some last minute reminders as we race toward this year's tax deadline. Make retirement contributions It's almost as if the government knows how much its citizens like to procrastinate. That's presumably why they allow you to make contributions to your 401(k)s or IRAs up until April 17th and have it apply toward your 2017 return. In my experience, when you go to make these contributions, you will be asked whether you'd like to retroactively apply it to tax year 2017 or toward the current year, making it easy to keep track of. Beyond the benefits of being able to subtract these contributions from your taxable income, you may also qualify for what's known as the saver's credit. These credits could reward you with up to $1,000 ($2,000 for married couples filing jointly) just for adding funds to your retirement accounts. This even includes contributions to Roth IRAs, which aren't tax deductible typically. The size of your credit will depend on your income, the amount you contributed, and other factors but it's definitely worth looking into and attempting to maximize. There are free filing options available As I mentioned, I'm apparently going solo with my tax preparation this year, which has led me to start researching different options. Being a Quickbooks Self-Employed user, the natural choice would be TurboTax. However my self-employment means I'm not a candidate for their free offering. Meanwhile I am actually considering giving Credit Karma's completely free tax preparation service a try. Unlike some of the other guys, Credit Karma Tax makes it free to file both federal and state tax returns. That sounds pretty good to me but I definitely have a list of backup plans just in case. Organize your business expenses and deductions Speaking of Quickbooks, I may or may not have fallen a little bit behind on categorizing my various transactions, labeling them as either "business" or "personal." Thankfully my laziness set in after the new year so I should be set for tax time but it's an important reminder to get my stuff in order. Even if you don't have business expenses to deduct, you'll likely want to stay on top of any personal deductions you may qualify for (mortgage interest, charitable donations, etc.). Notably fewer Americans will need to itemize their deductions in the future thanks to an increase in the standard deductions but it's business as usual this year — so be prepared. Don't wait until the actual last minute Finally, with only three weeks, don't wait much longer to get your taxes filed. A lot of things can go wrong when preparing your return and so waiting until mid-April is really just asking for trouble. This is especially true if, like me, you plan on trying out some of the free tax filing options and/or are new to this whole process. Let's make a pact to grab some coffee, gather our documents, and bang our these returns this weekend, eh?
Tax Day 2018 is really just around the corner now. As someone who's just learned that he's on his own this time, I now fully understand the stress that this time of year can instill in people. That said, with three weeks to go, now is the time to check up on your retirement contributions, organize your deductions, test out free filing options, and (most importantly) stop procrastinating. Good luck!
This article Money at 30: Last Minute Tax Reminders for 2018 was originally seen on https://dyernews.com/
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