What you Should be Prepared for on Tax Deadline Day

Tax deadline day is April 15th, and there are a few things that you need to be prepared for when you go to pay your taxes! First and foremost, you’ll want to make your first estimated tax payment for 2019 in order to meet the deadline. Second, you’ll want to file your 2015 tax return, as this is the last year that you’ll be able to before the money that you’re owed becomes the U.S. Treasury’s! Lastly, you’ll want to contribute to your Health Savings Account by April 15th as this the deadline for the 2018 tax year to contribute to said account! Doing these three things is a great way to ensure that you’re ahead of the curve and that you avoid any penalties from the IRS!

Pay your First 2019 Tax Payment

This may seem like an obvious thing but aside from paying your taxes for the 2018 tax year, you should also go ahead and make your first estimated tax payment for 2019! If you’re someone whose income isn’t subject to payroll withholding taxes, like contractors or a person with investment earnings, then you’ll be required to pay quarterly tax estimates. As such, you’ll need to determine your adjusted gross income, as well as deductions and credits for the year! If you have experience making these quarterly payments then you’ll most likely already be prepared, but if this is your first year having to make such payments then the IRS’ website can help your understand what you need! As such, the IRS Form 1040-ES can help with this!

File your 2015 Tax Return

No that’s not a typo, if you haven’t filed your tax return from 2015 then you need to do so by the April 15th deadline! If you were due a refund in 2015 but never filed, there’s still time for you to do so and receive the money that you are owed! It may sound hard to believe that every year hundreds of thousands of taxpayers don’t file for their refund and leave money sitting on the table, but last year alone the IRS had over $1 billion in unclaimed refunds! If you were due a refund in 2015, you must file before April 15th, because after that date your refund money belongs to the U.S. Treasury!

Contribute to your Health Savings Account

A health savings account (or HSA) is an account available to those with a high-deductible health plan, and provides a tax saving way for individuals to pay for out-of-pocket costs. April 15th is the deadline to contribute money to your HAS for the 2018 tax year, so act fast if you still want to contribute! In addition, make sure that you’re familiar with the 2018 limits for HAS contributions; individual HSA owners are limited to $3,450, while family HSA owners are limited to $6,900. This knowledge will ensure that there won’t be any surprises when you go to contribute to your HSA!

It's important to get ahead of your taxes each year and not wait until the last minute. Contact Carolina Money Minders for any and all help with your taxes!