Last Minute Tax Tips for Filing Your Return

This article provides clear, actionable guidance for those completing their tax returns at the eleventh hour. It offers specific tips to help navigate the final stages of filing so you can submit your return with confidence.

Tax-Reducing Contributions You Can Still Make

Even after the tax year ends, certain actions can lower your taxable income. You can make a contribution to a traditional Individual Retirement Account (IRA) up until the tax filing deadline, typically April 15, and apply it to the previous year. For the 2024 tax year, you can contribute up to $7,000, or $8,000 if you are age 50 or over. A contribution to a traditional IRA can reduce your adjusted gross income (AGI), which can lower your overall tax bill.

The deductibility of traditional IRA contributions depends on your income and whether you are covered by a retirement plan at work. For 2024, the deduction for single filers covered by a workplace plan is phased out for incomes between $77,000 and $87,000. For married couples filing jointly where the contributing spouse is covered by a workplace plan, the phase-out range is $123,000 to $143,000.

A Health Savings Account (HSA) is another option for those enrolled in a high-deductible health plan. You have until the tax filing deadline to make contributions for the previous tax year. For 2024, the limit for self-only coverage is $4,150, and for family coverage, it is $8,300. Individuals age 55 and older can make an additional $1,000 catch-up contribution.

HSA contributions are directly deductible, which reduces your AGI. This provides a triple tax advantage: the contribution is deductible, the funds grow tax-free, and withdrawals for qualified medical expenses are tax-free. While Roth IRA contributions can also be made until the deadline, they are funded with after-tax dollars and do not provide a deduction for the contribution year.

Final Check for Overlooked Deductions and Credits

Before finalizing your return, it is beneficial to review your financial information from the past year for any missed tax-saving opportunities. A primary decision when filing is whether to take the standard deduction or to itemize. For the 2024 tax year, the standard deduction is $14,600 for single filers, $29,200 for married couples filing jointly, and $21,900 for heads of household. If your total itemizable expenses exceed your standard deduction amount, itemizing will likely result in a lower tax bill.

One overlooked deduction is for student loan interest, which allows you to deduct up to $2,500 in interest paid on a qualified loan. This deduction is available even if you do not itemize. For 2024, it is phased out for single filers with a modified adjusted gross income between $80,000 and $95,000 and for married couples filing jointly with an income between $165,000 and $195,000.

Eligible K-12 educators can deduct up to $300 of unreimbursed classroom expenses without itemizing. If you do itemize, you can deduct charitable contributions made to qualified organizations. You must maintain records, such as bank statements or written acknowledgments from the charity, for these donations.

For those who itemize, the state and local tax (SALT) deduction allows you to deduct certain taxes paid to state and local governments. This can include property taxes and either income or sales taxes. The total amount you can claim for the SALT deduction is capped at $10,000 per household per year. A final review for these and other potential deductions and credits can ensure you are not paying more tax than necessary.

Requesting a Filing Extension

If you cannot meet the tax filing deadline, you can request an automatic six-month extension from the IRS, moving the due date to October 15. This is an extension of time to file, not to pay. Any tax you owe is still due by the original deadline, typically April 15.

To request an extension, you must file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. The request must be submitted or postmarked by the original tax filing deadline. The form can be submitted electronically through tax software or the IRS Free File system, or you can mail a paper copy.

When filing Form 4868, you must make a reasonable estimate of your tax liability and pay as much of that amount as possible. Failing to pay by the original due date will result in penalties and interest on the unpaid balance, even with an approved extension. The late-payment penalty is typically 0.5% of the unpaid taxes for each month they remain unpaid.

Options for Filing and Paying Your Tax Bill

The most common submission method is electronic filing (e-filing) through tax software, a tax professional, or the IRS Free File program. E-filing is the fastest and most secure way to file, and you will receive a confirmation that the IRS has accepted your return. Refunds are often issued within 21 days when using direct deposit. Mailing a paper return is an alternative, but processing times are much longer.

If you have a tax bill, the IRS offers several payment methods.

• IRS Direct Pay is a free service that allows payment directly from a checking or savings account.
• Debit cards, credit cards, or digital wallets can be used through third-party payment processors, which charge a fee.
• The Electronic Federal Tax Payment System (EFTPS) is a free online service from the Treasury Department that requires enrollment.
• Electronic funds withdrawal can be authorized from your bank account when you e-file.

You can also pay by check, money order, or cashier’s check. Make the payment out to the “U.S. Treasury” and mail it with Form 1040-V, a payment voucher. Write your name, address, phone number, and Social Security number on the front of the payment to ensure it is credited correctly.