Last-Minute Tax Filing Tips: What You Need to Know Before April 18

As the tax season comes to a close, tens of millions of households are yet to file their returns. If yours is among them, here are some essential last-minute tax-filing tips to keep in mind as the Tuesday, April 18 deadline approaches.

Not Everyone Has to File on April 18

Not everyone is required to file their taxes on April 18. If you live in a federally declared disaster area, have a business there, or have relevant tax documents stored by businesses in that area, it’s likely the IRS has already extended the filing and payment deadlines for you. You can find the specific extension dates for each disaster area on the IRS website.

Thanks to the recent extreme weather in California, tax filers in most of the state have already been granted an extension until October 16 to file and pay, according to an IRS spokesperson. This accounts for 10% to 15% of all federal filers.

Taxes and Adulting: What to Know About Filing Taxes on Your Own for the First Time

Additionally, if you’re in the armed forces and are currently or were recently stationed in a combat zone, the filing and payment deadlines for your 2022 taxes are most likely extended by 180 days. However, your specific extended filing and payment deadlines will depend on the day you leave (or left) the combat zone. You can find more detail in the IRS publication.

If you made little to no money last year (typically less than $12,950 for single filers and $25,900 for married couples), you may not be required to file a return. However, you may want to file anyway if you think you are eligible for a refund thanks to refundable tax credits such as the Earned Income Tax Credit. You can use the IRS tool to gauge whether you are required to file this year.

Organize Your Tax Documents

By now, you should have received every tax document that third parties are required to send you (your employer, bank, brokerage, etc.). If you don’t recall receiving a hard copy of a tax form in the mail, check your email and your online accounts – a document may have been sent to you electronically.

Here are some of the tax forms you may have received:

• W-2: Wage and Tax Statement
• 1099-INT: Interest Income
• 1099-DIV: Dividend Income
• 1099-B: Proceeds from Broker and Barter Exchange Transactions
• 1098: Mortgage Interest Statement

Be aware that there’s no form for some taxable income, like proceeds from renting out your vacation property, meaning you’re responsible for reporting it on your own, according to the Illinois CPA Society.

One Last-Minute Way to Reduce Your 2022 Tax Bill

If you’re eligible to make a tax-deductible contribution to an IRA and haven’t done so for last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). This will reduce your tax bill and augment your retirement savings.

Proofread Your Return Before Submitting It

Do this whether you’re using tax software or working with a professional tax preparer. Little mistakes and oversights delay the processing of your return (and the issuance of your refund if you’re owed one). You want to avoid things like having a typo in your name, birth date, Social Security number, or direct deposit number; choosing the wrong filing status (e.g., married vs single); making a simple math error; or leaving a required field blank.

What to Do If You Can’t File by April 18

If you’re not able to file by next Tuesday, fill out Form 4868 electronically or on paper and send it in by April 18. You will be granted an automatic six-month extension to file. Note, however, that an extension to file is not an extension to pay. You will be charged interest (currently running at 7%) and a penalty on any amount you still owe for 2022 but haven’t paid by April 18.

So if you suspect you still owe tax – perhaps you had some income outside of your job for which tax wasn’t withheld or you had a big capital gain last year – approximate how much more you owe and send that money to the IRS by Tuesday. You can choose to do so by mail, attaching a check to your extension request form. Make sure your envelope is postmarked no later than April 18.

Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do that, the IRS notes you will automatically process an extension of time to file. You can also pay by credit or debit card, but you will be charged a processing fee.