things youR tax pRepaReR wants you to Know B y K at e R o c K wo o d
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Your moneY is due april 15—even if You file an extension The IRS allows extensions of up to six months, but they’re meant for people who don’t have all the information they need to file, not for those who don’t have the money. “There’s a penalty and interest for missing the payment deadline, even with an extension,” says Melissa Labant, CPA, director of tax advocacy for the American Institute of CPAs. To skirt those extra costs, estimate your bill and make a payment— you can get money back if necessary (or pay additional taxes owed) when you actually file. “Take a guess at whatever bit of information is holding you back from filing. Maybe it’s one 1099 form you’re missing or one deduction you’re waiting on,” suggests Labant. “Then round up your estimate to play it safe, and mail in the money.”
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You’re probablY leaving out some deductions It’s not only the bigticket items that deserve your attention—smaller ones can add up too. “Most people know about charitable deductions, but they don’t realize that travel related to volunteering can be deducted, as can job-search expenses,” says Lisa Greene, a CPA and tax expert at TurboTax. Maintain records—everything from printing résumés at the copy shop to air travel for a job interview. If your total miscellaneous expenses are more than 2% of your adjusted gross income, your search may be deductible (even if you didn’t land a job). Other deductions: membership fees for a weight-loss program, if you joined on a doctor’s advice; legal fees paid to secure alimony; moving expenses to relocate for a new job; classroom supplies (up to $250) if you’re a teacher.
dollar bill: burazin/Getty imaGes. GeorGe washinGton: Fernando bueno/Getty imaGes. desk set: Getty imaGes.
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