Newswise — The deadline for filing taxes is quickly approaching and Saint Joseph's University accounting professor Dennis Raible has some money-saving tips for late filers.
1.Take advantage of free e-filing. Through the IRS, eligible taxpayers can take advantage of an online program where taxes can be filed at no cost. For information on e-filing and eligibility, visit: www.irs.gov/efile
2. File an extension. If taxpayers aren't able to get the necessary paperwork in by April 15, Raible's advice is to "make certain that an extension of time to file is completed by that date." Otherwise, taxpayers could face penalties. "By filing an extension, you're extending your time to file your return, not pay your tax," Raible explains. "An estimate of your final tax liability should be paid by April 15, however, an extension grants you until October 15 to get all of the paperwork together."
3. If needed, arrange for a payment plan. Taxpayers who owe money to the IRS and cannot afford to make a lump sum payment have the option of arranging for monthly installments. However, Raible advises people to use the payment plan as a last resort, since the agreement could carry interest and penalties.
4. Deduct $500 for real estate taxes. Taxpayers who claim the standard deduction, rather than itemizing, have a new real estate provision this year. A single person paying state and local real estate taxes is eligible to increase his/her standard deduction up to $500. For married couples, up to $1,000 could be added to his/her standard deduction.
5. Claim that tuition. The cost of qualified tuition can be claimed up to $4,000. Additionally, interest from student loans can be claimed up to $2,500. Both tax provisions have income thresholds.
Raible, a certified public accountant and retired IRS Revenue Agent, supervises Saint Joseph's University's Volunteer Income Tax Assistance Program, where accounting students prepare the taxes of those who cannot afford paid tax preparation services.
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