Most taxpayers have until April 15 to file their federal taxes, but you can file for an extension that pushes the due date to October 15. Filing for an extension is free and can be done online. However, even with an extension you must still pay any estimated tax balance by the original due date to avoid penalties and interest.
Financial security involves feeling comfortable with your financial situation, having savings and investments, and owning your home. The key to achieving it is financial literacy, which can reduce stress and improve your money management. By talking about money with others, seeking advice from experts, and making financial plans, you can boost your knowledge and work towards financial security.
With tax season approaching, be cautious of scams attempting to steal personal and financial information. The IRS urges you to avoid contact from unknown sources claiming to assist with tax savings or refunds. Identity theft can lead to fraudulent tax returns, credit card accounts, or loans. If you suspect a scam, report it to the IRS or other government officials. Remember, the IRS typically contacts taxpayers by mail, not phone or email.
Many Americans dislike budgeting because it feels like deprivation. Experts suggest reframing it as "raising funds" or setting financial goals to make it more positive. Identify strategies that meet needs while saving money, such as using streaming services alternately or raising insurance deductibles. By committing to small spending reductions, you can create extra cash flow to pay down debt or save for the future.
There are still ways to reduce your taxes or get a bigger refund before the April 15th deadline. Consider putting money into a pretax IRA, a spousal IRA (if you're married), or a health savings account. These contributions can lower your taxable income or provide tax-free growth.
To ensure prompt tax refunds, file a complete and correct tax return with information matching IRS records. Gather all necessary tax forms, including W-2s and 1099s. Verify your income and claim eligible deductions and credits, such as mortgage interest and tuition expenses. Review previous tax returns and consider life changes that may impact your return. Filing an accurate return initially is crucial to avoid delays from amended returns.
