The IRS has began accepting tax returns for the 2020 tax season so for those who haven’t began to consider your tax return, get on it.
And fortunately, there are nonetheless some last-minute issues you are able to do to get that tax invoice down. So whilst you’re organizing your paperwork and going by receipts, don’t neglect issues like:
- The gross sales tax you paid. If you happen to itemize your deductions, you possibly can select to deduct your state taxes paid OR your gross sales tax. If you happen to made a giant buy in 2020, your gross sales tax could also be greater. So verify that out.
- Factors paid factors on a refinanced mortgage or a brand new one. These could also be deductible too.
- All of your charitable contributions, even those you had deducted out of your paycheck, so verify your W-2.
- Miles your drive to a charitable occasion. If you happen to drove to a charity occasion and donated your time or energies, you might be able to deduct 14 cents per mile for the experience.
- IRA contributions. You could have till you file your return to make a contribution for 2020. That may very well be $6,000 plus an extra $1,000 for those who’re 50 and over. And for those who’re self-employed, you’ve got time to make these SEP IRA contributions too.
- And for those who can’t get your tax return collectively by April 15, you possibly can file Form 4868 – Application for an Automatic Extension of Time to File. That’ll offer you till October 15, 2021, to file your return – no questions requested. Huge be aware although: That’s NOT an extension of time to pay your invoice. You continue to owe any taxes due by April 15 or you can be smacked with late penalties and costs.
So be sure you watch the video above for all the main points.