Today is tax day. Here’s your last-minute guide to filing with tips from an NC expert
If you’re scrambling to file your taxes, you’re not alone.
The last day to file state and federal taxes is Monday, April 18. This is also the last day to request an extension.
A local accounting expert offers tips to beef up your refund and shares common errors that make the tax season longer and even more tedious.
The News & Observer chatted with Roby Sawyers, undergraduate director of NC State University’s Department of Accounting, to learn some last-minute pointers for filing.
Advice from an accountant: Need-to-knows for filing taxes
Here’s what you need to know if you haven’t filed your taxes yet.
▪ It’s an extension to file, not to pay: “You need to estimate if you’re going to owe anything when you file,” Sawyers said. “If you know you’ll get a refund, then file for the extension. But if you’re going to pay, just pay that today and file an extension, too.”
Form 4868 will automatically grant you an extension, and you’ll have until October to file your return. If you choose to file another extension in October, you will not be granted it automatically, Sawyers said.
If you request an extension and don’t pay on time, you’ll get hit with penalties, requiring you to pay interest between April 18 and your payment date.
▪ Track down your accurate records: Sawyers often sees inaccurate records for three things: pandemic stimulus payments, advance child tax credits and advance premium tax credit.
“All of these need to be reconciled on your tax return. If you’re filing through some tax software program that leads you through it, like TurboTax, it’s easy to find out where to report this,” Sawyers said. “The issue is finding the records and reporting them properly.”
If you received a stimulus check, advance child tax credit or advance premium tax credit (which you may have by applying for health coverage through the Health Insurance Marketplace), the Internal Revenue Service (IRS) will have contacted you to share details of the payment.
“If you don’t report it right, you can get a rejection, and you’ll have to do it again,” Sawyers said.
▪ Go green: By filing electronically and selecting to receive refunds through direct deposit, you’ll speed up the process significantly, Sawyers said. Paper returns take a lot longer to go through.
If you file your return by mail, it needs to be postmarked by April 18.
“If your mail carrier already got to your home, it looks like you’ll have to head to the post office. Remember, they’re probably not open until midnight for you,” Sawyers said.
▪ Request money owed to you: Still haven’t received your stimulus check? You can request that money when filing.
“If you didn’t get the check and you qualify, you can get it when you get your return,” Sawyers said. “If you say you didn’t get the check, but you actually did, that’s going to cause problems for you later on. You’ll get a letter from the IRS asking for money back.”
▪ File!: “Remember, you don’t get your money back until you file your return,” Sawyers said. “I have a number of clients who have significant refunds waiting for them, but they’re like, ‘I can’t get the details together, just file for an extension.’ But they don’t realize they’re missing out on their money. They won’t get their money back until they actually file.”
Tax filing 101 in North Carolina
The N&O has reported on tax season this spring. Here are some stories with more guidance.
▪ Tax deadlines are soon. What to know about filing in NC, extensions and more: newsobserver.com/news
▪ Lost your W-2 or never received one? What to do in order to file your taxes: newsobserver.com/news
▪ Can you get a tax deduction for working from home? What to know before you file: newsobserver.com/news
▪ Did you get child tax credits? Keep this document handy to help with taxes, IRS says: newsobserver.com/news
▪ Your tax refund could come later or be a different amount than expected. Here’s why: newsobserver.com/news
