Tax SZN

I would be lying if I said I totally understand taxes. In all honesty, I think tax-professionals might also be telling a little fib to say it is not at least a little confusing to them as well.

April 15th. That is "the day" individual income tax returns are due...or is it? Tax day bounces around year-to-year due things such as: timing of weekends, various state holidays and even timing of natural disasters. This year, "tax day" is April 18th for most Americans.

So what is the deal with 2017? April 15th this year is a Saturday...so we push to Monday the 17th, right? Nope. That is the day D.C. will celebrate Emancipation Day. A weird law is that holidays in D.C. impact the entire nation.

April 18th this year will be the last day for citizens to file for extra time to get all of their paperwork together. Taxpayers are allowed to ask the Internal Revenue Service (IRS) for an extra 6 months and you don't even need to give a reason.

So, what do you need to have by April 18th? For starters, wage reports:

• Employees - W-2: reports the amount of federal, state and other taxes withheld from your paychecks.
• Independent Contractors - 1099 Form: if you are self-employed or an IC, you will have a 1099 rather than a W-2.

"Tax day" kind of sounds like the day you are paying your taxes but that is not the case.

You are paying taxes throughout the year (well aware when that paycheck gets smaller and smaller.) Come April, you will submit either of these forms above and possibly receive a return if you have overpaid, which most have. It is always better to pay too much and then be returned a nice check than to file under the amount you should be paying. This can result in paying a penalty. This is all determined by how you fill out your tax forms (dependents, exemptions, etc.)

W-2's are usually sent out in January, so if you have not received it yet, you should contact your employer.

You have a little over a month left to get all of your ducks in a row. Here are some other things you need to get together so that this fine Tuesday in April doesn't turn into an 11th hour scramble.

• Social security number (for you, spouse and any dependents)
• Wage Reports (W-2 or 1099)
• Other Income (investment, rental properties, social security etc.)
• Retirement Contributions (IRA, 401(k), student loan or mortgage interest etc.)
• Credits and Deductions (charitable contributions, schooling etc.)

It is possible to do your taxes all by your lonesome but it increases the chance for errors...you want to make sure you're getting the most back from your buck and not messing anything up which could cost you. With that, having an accountant or a website like TurboTax.com can ease the process. TurboTax works like an interview. It will ask you questions to determine your deductions and proper withholding amounts. T.T. coaches you along the way to make the process as seamless as possible.

These tools can make your life much easier & send you sailing into May with some extra dough in your pockets.

Wall Street Journal: "Why April 15 Has Lost Its Claim As 'Tax Day'"
TurboTax.com
IRS.com/Articles/Tax-Form-Checklist
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