Tax Day Tips: What to Know Before Filing Your Taxes

Key Tax Filing Deadlines and Actions

• 📌 Tax Day is on Tuesday, April 15th, marking the deadline for filing your federal taxes.
• 💡 You have until April 15th to make contributions to your IRA or HSA and still receive a tax break.

Gathering Essential Tax Documents

• 📄 Ensure you have all necessary documents, including W2s and 1099s, for income, dividends, interest, and stock sales.
• 💰 Be aware of the new 1099K for those using third-party payment platforms like Venmo or PayPal, especially gig workers, if transactions exceed $5,000.

Filing Methods and Timeliness

• 💻 Electronic filing is recommended for its speed compared to filing by mail.
• ⏳ Allow ample time for electronic filing to avoid potential site slowdowns or internet connection issues on the deadline day.
• 📮 If filing by paper, ensure you have enough time to get to the post office and obtain a postmark.

Understanding Tax Extensions

• 📝 Filing an extension is simple and must also be done by April 15th using Form 4868.
• ⚠️ Crucially, an extension to file is NOT an extension to pay.
• 💸 If you anticipate owing money, estimate the amount and send a payment with your extension to avoid penalties, fines, and interest on the unpaid balance.