Countdown To Tax Day: 2015 Expert Tips by Wallethub
With Tax Day fast approaching, the 28% of Americans who wait until April to file their returns have a lot of catching up to do. In order to help them out, the personal finance websites WalletHub and CardHub have compiled a list of last-minute tax tips from 15+ experts as well as a guide to avoiding tax scams during this perilous time of year.
Countdown To Tax Day
A few highlights include:
- Don’t Try to Hide: You’re not going to slip through the cracks, and the IRS has proven far more willing to work with people when they’re straightforward about their ability, or lack thereof, to meet tax obligations. So, submit your return by the April 15 deadline even if you don’t have the money to pay and select the appropriate payment strategy for your situation.
- Watch Out For Scams: From fraudulent returns designed to steal tax refunds to phishing and illegitimate tax servicing companies, there are myriad scams to watch out for every April.
- Seek Free Advice: Having someone to bounce questions off of or even just an extra pair of eyeballs to check your work can help you avoid making mistakes and work wonders for your stress levels. Just make sure to properly vet anyone you decide to work with.
- Make an IRA Contribution – Contributions up to $5,000 for most people and $6,000 if you’re 50 or older are both tax-deductible and tax-deferred. Just make sure to send the contribution by April 15 and notify the deposit institution that you want it counted for 2014 tax purposes.
- Use Your Losses: If you itemize your deductions, don’t forget to subtract realized capital losses, gambling losses, mortgage interest, and interest incurred on business loans and lines of credit throughout the year. All are deductible to varying extents.
- Reevaluate Withholdings: Receiving a refund isn’t always a good thing. In fact, it may indicate that you are overpaying and thereby sacrificing potential investment returns.
All of the tips, including commentary from leading tax experts, can be found here: http://wallethub.com/edu/tax-tips/2932/