The deadline to file taxes is Monday, May 17. That’s tomorrow. That’s your final day to get your taxes done. But as I mentioned last time, you can file an extension if you need more time. If you are going to file in time for the deadline on Monday, I want to quickly remind you of a few things. I’ve shared them before. If you want to catch up, read ” 5 Things to Think About This Tax Season” and ” More Tips for Tax Season“…
When You’re Filing, Remember…
1. The stimulus checks. If you got these checks, remember, the money isn’t considered taxable income. So, other than confirming that you already received the direct deposit(s) or check(s), there’s no need to report it as income when you file. There have been three stimulus payments, but the third one should not be reported on your 2020 taxes. And if you didn’t receive the first two stimulus payments but think you should have, there’s a spot where you’ll be able to claim the Recovery Rebate Credit while you’re filling out everything. 2. Itemizing may work out better for you. The standard deduction was $12,400 for individuals or married couples choosing to file separately, and $24,800 for married couples filing jointly. Just to name a few examples, any donations to certain organizations, such as nonprofits or churches, property tax payments, payments toward mortgage interest, or contributions to a health savings account (HSA) would be tax deductible (and last time, I wrote about how I will no longer ignore my HSA). And if that’s more than the standard deduction for you, it’d be best to itemize. 3. Doing taxes on your own isn’t as hard as you think. If your tax situation isn’t too complicated, you may save yourself some money filing on your own. The IRS has a list of software you can use to file for free. Click here, if you want to find out more. 4. Double-check everything before you file. Before you click “File,” or “Finish,” go back and review your work. Mistakes happen. So, just give yourself an opportunity to catch them. 5. The W-4 Update By using the most recent W-4, you may be able to walk away with more of your paycheck every pay period than before. If you’re unsure of how it could impact you, the best thing to do is reach out to a professional. And if you prefer getting a your refund, remember, it could be put to better use throughout the year. Just click here, if you need a visual. 6. Plan for Next Year If you see something when you do your 2020 taxes this time around, plan for it in your budget this year, so you’ll be ready next time. It may just be a matter of adjusting a couple things, like what you put on your W-4. And a tax professional may help you do that. And if you need help planning your budget for next year, you can always reach out to me.
With gratitude,
Melody C. Kerr, MS
Writer, Editor, Financial Coach
