WMBD This Morning

Last minute tax tips with Daryl Dagit

Filing season statistics as of March 22 (the most recent data that is available):

84,075,000 total tax returns received, and 81,562,000 tax returns processed
65,836,000 refunds made totaling over $191 billion
Average refund is $2,915
Here is the link to the most recent statistics: https://www.irs.gov/newsroom/filing-season-statistics-by-year
 
Filing an extension.
If you feel you can't get your taxes filed by April 15, then you can file an extension. This will give you until October 15 to file your taxes, but you need to notify the government of your intentions by this deadline and you will start accruing late payment penalties if you owe money.  
 
Last minute tax tips
Itemized deductions. Standard deduction has increased to $24,000 for married couples ($12,000 for singles; $18,000 for head of household). As a result, many people who itemized deductions in prior years will not itemize this year.

Personal exemptions for dependents also have been eliminated, which means you don't get a deduction for your children anymore. Instead, a higher tax credit is available for all children under the age of 17 - a $2,000 credit per child (previously, it was $1,000 per child).

Look into making last minute IRA contributions: It's not too late to contribute to your 2018 IRA! You have up until April 15th to make an IRA contribution, which could be tax deductible depending on your income and if you have a retirement plan through work.   

Plan ahead for next year:
Gathering up all your documents and scurrying at the last minute, you are most likely going to miss some key areas that could have benefitted you if you had given yourself more time. Plan ahead next year to reduce stress and become more organized.


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