Experts Provide Tax Deadline Tips 4-10-2011 - WSMV Channel 4

Experts Provide Tax Deadline Tips 4-10-2011

Reported by Carley Gordon
NASHVILLE, Tenn.
The clock is ticking and tax day is almost here. If you haven't filed yet, there are some things you may want and need to know.

Related: Watch This Story | 10 Tax Tips For Procrastinators


An estimated 600,000 Tennesseans will file during the last two weeks before the tax deadline, and if you're one of them, Channel 4 has some helpful tips for you.
First of all, don't miss out on two important credits.
One of them is the 'making work pay tax credit.' It's a credit of up to $400 for individuals and up to $800 for married couples. Make sure you fill out "schedule m," to see if you qualify," said IRS spokesman Dan Boone.
The other one is the earned income tax credit for lower income people who worked some part of last year and earned less than $49,000.
"It can be up to $5,666 back in your pocket. Plus, you can get the money even if you didn't pay money into Uncle Sam last year," said Boone.
Boone also said if you don't file something by April 18, you could face severe penalties.
"You're going to be hit, not only with the late payment penalty for not paying on time, you're also going to be hit with the late filing penalty and that is the biggest one of all. It can be up to 25 percent of what you owe," said Boone
An estimated 169,000 Tennesseans are planning to file for an extension, but keep in mind while it does give you until October 18th to get your paper work in order, it does not give you an extension on what you owe.
"Pay as much as you can. That's the bottom line. Reduce the amount you owe by as much as you can and that reduces the interest on the penalties that you may get hit with," said Boone.
If you can't afford to pay what you owe, you do have some options.
The IRS offers payment plans online at http://www.irs.gov.
In extreme circumstances you can also settle for less than you owe.
As for Tennessee's flood victims, many are wanting to file casualty losses on their 2009 taxes because the rules were less strict than in 2010.
You can still do that by amending this year's taxes but you must do it before April 18, 2011.
You can also claim a refund three years back. So if you haven't filed your taxes for 2007 and you are owed a refund, this year would be your last shot at getting it.
There are no penalties for late filing if you are owed a refund.
Keep in mind the IRS never emails people about their taxes, so if you receive an email that looks like its from the IRS regarding your taxes, it is a scam.
Typically the IRS' phone lines are extremely busy during tax season. Representatives recommend calling early or late in the day to have a better chance at getting through.


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