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Tax season is in full swing, and amidst the hustle of filing returns and extensions, financial expert Jini Thornton shares valuable advice to help individuals make informed decisions and reduce stress during this time.
One of the key takeaways from Thornton’s insights is the availability of free resources for filing tax returns. The IRS Free File program is a valuable option for individuals with incomes under $79,000 per year. Additionally, popular software platforms like TurboTax, H&R Block, and even Cash App offer free filing services, making it accessible for everyone to file electronically at no cost.
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When it comes to minimizing the risk of audits, Thornton highlights several red flags identified by the IRS, including failure to report all income, large charitable contributions, and self-employment. Her advice? Be proactive and prepare meticulously to avoid potential audits, ensuring that all documentation is organized and accurate.
Here are some key tips to simplify your tax process:
- File an Extension: Use form 4868 for an automatic extension if needed, giving yourself until October 15th to complete your return.
- Make Partial Payments: Even if you can’t cover the full amount owed by the deadline, pay as much as possible to reduce penalties and interest.
- Utilize Free Filing Resources: Take advantage of free filing options such as IRS Free File, TurboTax, H&R Block, or Cash App if your income is under $79,000 per year.
- Minimize Audit Risks: Be proactive by reporting all income, managing charitable contributions, and keeping your documentation organized.
- File Final Returns for Deceased Individuals: If someone passed away but had income in the last year, file a final return; any resulting refunds or debts are the responsibility of the estate.
- Set Up Payment Plans: If you’re unable to pay your tax debt at once, the IRS offers payment plans using form 9465; approval is often granted for debts under $50,000 and compliance with filing requirements.
Tax Day Insights: Expert Tips for Smooth Filing and Payment was originally published on getuperica.com
