WASHINGTON 鈥� The deadline for filing your income tax returns is April 17, which is really not as much time as it sounds.
The big changes in the tax law passed last fall mostly don’t kick in until tax time next year, but there are still a few things to keep in mind as crunch time approaches.
ABC 海角社区app correspondents Scott Goldberg and Daria Albinger have hosted another series of tax tips to help get taxpayers ready for the big day. Here are some of their most valuable tips:
Get organized
Going paperless with your financial institutions has a lot of advantages, but there鈥檚 one drawback: You have to remember to download all sorts of forms, including for the mortgage-interest deduction. 鈥淵ou may have said, 鈥極K; I want to be paperless鈥� … [but] you now have to go to that website and download that document,鈥� tax accountant Janice Hayman said. And of course, you need to have all your receipts together for any expenses you want to deduct. If you鈥檙e not there, the only advice left is 鈥� well, at least you鈥檝e got two extra days: The deadline to file is April 17 this year. (Thinkstock)
Thinkstock
Finding a tax preparer
A lot of people use professional tax preparers to help with their taxes, but it鈥檚 important to find someone who can actually help. ABC 海角社区app correspondent Rebecca Jarvis said it鈥檚 important to check whether they鈥檙e licensed, specifically whether they have a Preparer Tax Identification Number. With such a number, 鈥渢he IRS knows [they鈥檙e] actually legitimately somebody who is able to file taxes on behalf of other people.鈥� A licensed preparer is also willing and able to represent you in front of the IRS if you鈥檙e audited. You also need to look for someone who charges a set fee, not a percentage of the return they can get you. You want someone who can get you the biggest refund possible within the law and 鈥渘ot be playing the system.鈥� (AP Photo/Susan Walsh, File)
AP Photo/Susan Walsh, File
Hurricane expenses
If your income dropped because of Harvey, Irma or Maria, 鈥測ou might qualify for the Earned Income Credit when maybe you haven鈥檛 before,鈥� said IRS spokesman Eric Smith. If you didn鈥檛 get insurance payments for your losses, 鈥渢here鈥檚 a more liberal method for computing your deduction … You can actually get a higher standard deduction; you don鈥檛 even have to itemize, as you normally would.鈥� (AP Photo/Carlos Giusti, File)
AP Photo/Carlos Giusti, File
What if you can鈥檛 pay?
The IRS has options, but asking for more time isn鈥檛 among them. 鈥淭he extension is to file,鈥� Hayman said. 鈥淵ou get an extension of time to file, but payment is due April [17].鈥� If you can鈥檛 pay it all, pay what you can 鈥� you鈥檒l get 120 days to pay the rest, with interest and penalties but no fees. You can also ask for fixed monthly installments (there鈥檚 an application and some fees). There鈥檚 also what鈥檚 called an offer in compromise, which also requires an application. (Thinkstock)
Thinkstock
Cheating
Budget cuts and the manpower needed to implement the new tax laws might leave you thinking you can get away with cheating on your taxes. Think again, Hayman said. 鈥淚t is so easy now to track income. And face it 鈥� not reporting income is fraud.鈥� 鈥淵ou want to abide by the rules as best you know them.鈥� You won鈥檛 go to prison if you make a mistake, but you can still end up paying serious fines. Most commonly, people get caught taking illegitimate deductions or not reporting income that someone else reported they paid you. (海角社区app/Neal Augenstein)
海角社区app/Neal Augenstein
Gig economy
A lot of people have a side income nowadays 鈥� some, in fact, make a living from several 鈥渟ide jobs.鈥� The people who are paying you may not have considered the sum enough to have sent you a 1099 form, but that doesn鈥檛 mean you鈥檙e in the clear tax-wise, Hayman said. 鈥淵ou have to report everything you earn, regardless of whether it鈥檚 reported to the IRS,鈥� Hayman said. There鈥檚 a bright side. If you have enough outside income, you 鈥渘o doubt have a self-employment element to you, and a lot of business deductions you may not have thought of.鈥� This might be a good situation to ask a professional to help you out. (AP Photo/Gene J. Puskar, File)
AP Photo/Gene J. Puskar, File
IRS impersonators
The IRS is old-school, and that can help you see through a scam. It has been happening all over the country, including the D.C. area 鈥� people are receiving phone calls from scammers saying they鈥檙e from the IRS and demanding immediate payment of some tax or another, with a credit or debit card over the phone, or you鈥檒l be arrested. That鈥檚 never, ever really the IRS, Hayman said. They don鈥檛 call; they don鈥檛 email; they send old-fashioned paper letters, at least at first. 鈥淭he only time they could call you is if you have this ongoing exchange with them,鈥� Hayman said. 鈥淎nd then of course you鈥檇 have a number to call back and verify that it鈥檚 them.鈥� When it is time to pay, don鈥檛 give information over the phone 鈥� the IRS is happy to take a check. And if you want to pay with a card, the has a list of approved payment processors. (Thinkstock)
Thinkstock
