Tips and pitfalls for filing your taxes at the last minute
WASHINGTON — Wednesday is Tax Day. The new deadline for filing your taxes has been extended to July 15th due to the COVID-19 pandemic, but even people who waited until today could squeeze in at least one last-minute deduction.
Personal Finance Expert Farnoosh Torabi told ABC News that now is the time to beef up those retirement accounts like 401(k)s and IRAs.
“Normally, we have until April 15th to contribute the max to our 401(k) and our IRAs, but now you have until July 15th,” Torabi said.
Taxpayers are also encouraged to look at starting an IRA for a relative, which could possibly give them more tax deductions.
Another benefit of filing your taxes late is that the Internal Revenue Service (IRS) will pay interest on those refunds.
According to the IRS website, “By law, the interest rate on both overpayment and underpayment of tax is adjusted quarterly. The interest rate for the second quarter, ending on June 30, 2020, is 5% per year, compounded daily. The interest rate for the third quarter, ending September 30, 2020, is 3% per year, compounded daily.”
However, taxpayers are being reminded that any interest they get will be taxed next year.
Another pitfall experts are warning about is scammers who are trying to steal taxpayers’ returns or stimulus checks.
The IRS sasy it only contacts people by official mail, so taxpayers are being urged to ignore texts, phone calls, or emails from anyone claiming to be from the IRS.
Anyone with questions can also go to IRS.gov/coronavirus
Today’s Top Stories
- When it’s this cold, keep your pipes from freezing. Here’s how.
- Weather causing delayed starts for several schools across Utah
- Governor Spencer Cox signs transgender bill, releases statement
- Herd of elk pushed away from I-80 and moved back into mountains
- Head on collision reported, State Route 73 closure
- Crash in Uintah County claims the life of a 19-year-old man
- LGBTQ advocacy groups to file lawsuit over Utah’s transgender-related surgery law
- Officer-involved shooting in Iron County
- Why is there an increase of wildlife in SLC neighborhoods?
- Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk