While the four-month Tax Day extension was a welcome relief for many Americans, the new July 15th deadline is right around the corner. If you’ve already filed your 2019 taxes with the IRS, CONGRATULATIONS, but don’t exit this blog just yet. You may find one of these helpful tax tips useful.
1. You Can Extend the Extension
If you haven’t filed your federal taxes yet, and you feel July 15 is still too soon, you can file for a personal extension that will push your due date to October 15, 2020. Keep in mind that only applies to federal taxes. State tax deadlines are determined by local governments and may differ from federal policies. For example, Virginia’s due date was May 1.
2. Early Birds Get Their Stimulus Checks First
While extending your extension is an option, it may be in your best interest to file your taxes as soon as possible. The government is currently discussing a second round of Economic Impact Payments, and like with the first round, taxpayers who recently filed their taxes and confirmed their banking information and addresses will be the first to receive them.
3. Focus on the Facts
There are a lot of rumors going around about Tax Day, ranging from an additional September 15th extension to local governments issuing unexpected property tax increases. While reading the news can be helpful, always double-check the websites of the IRSand other government agencies in your state for the most accurate and up-to-date information about federal and state tax policies.
4. Give Yourself a Break (or Nine)
If you’re a homeowner who’s been saving time by taking the standard deduction each year, you may be paying more than you need to! From mortgage interest to energy credits, there are several ways you can reduce your taxes through itemized deductions. This Intuit TurboTax article outlines nine of them!
5. Know Your Tools
The IRS website is loaded with tools to help you prepare your taxes, most notably, the Interactive Tax Assistant (ITA). With the ITA, you simply type in the topic you’d like to learn more about, like “Mortgages,” and you’ll be redirected to any helpful articles or calculators within the IRS website. And, if you’re using tax preparation software to file this year, be sure to familiarize yourself with the tools they have to offer.
6. Trust the Professionals
A certified public accountant (CPA) is your best source for any specific tax questions. And, as your real estate agent, I am your go-to resource for any real estate-related questions or concerns that may come to mind. From mortgage refinancing to home repairs and upgrades that could result in deductions, feel free to text or call us any time, day or night.
Stay safe, and have a good Tax Day!