The U.S. Department of the Treasury is delaying the April 15th deadline to file and pay taxes by 90 days, giving individuals and businesses another 3 months to file and then pay the government what they owe.
Putting off paying taxes until right before the deadline is human nature. In fact, according to recent statistics from the IRS, almost 70 million individuals had already filed their tax returns as of March. And that’s only 45% of the returns the IRS expects to receive this year.
For those who haven’t filed yet, here are some tips from a financial advisor. The first is to have a professional, usually an accountant, fill out your returns to the Internal Revenue Service. Two reasons to convince you to have your taxes done professionally:
So it is most likely worth your time and money to have an expert prepare your tax return or at least look it over for you.
Preparing your own returns can take a lot of time, but the exact amount of time depends on the complexity of your finances.
You already know that the federal, state and local tax laws are complex, and constantly changing. But remember, the Tax Cuts and Jobs Act made some significant changes to the tax code when it went into effect. In fact, most consider the Tax Cuts and Jobs Act to be the biggest tax reform legislation in more than 30 years.
For example, standard deductions came close to doubling and this might make itemizing less attractive to some taxpayers. In fact:
Further, did you know that:
The answer to that question, of course, depends on your situation. But it’s likely that for a lot of people, it makes sense to just stick to the original schedule and file and pay taxes by April 15th. Ask yourself this question:
“Is there any real benefit to waiting until July 15th?”
When you’ve answered that question, make sure you talk to your financial advisor.
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