Your 2008 tax return is due to the IRS by midnight on April 15, 2009. Here are some last-minute tips:Should you file yourself ... or pay a professional?
Maybe your tax returns are simple, enabling you to file them yourself. If your returns are somewhat involved, you may be better off turning to a professional for help. Be cautious of who you choose. Stephanie AuWerter of SmartMoney.com reports, "Look for somebody who is either a CPA or an enrolled agent."
Once it has been decided to file taxes on your own, there are a few options of tax software to choose from. CompleteTax allows you to prepare your federal and resident state tax returns online, and TurboTax offers a federal free edition as well.
You need more time to file
So you need more time to file. That's OK, as long as you pay your estimated taxes by Wednesday, April 15. File for extra time with an Application for an Extension of Time to File- form 4868. This grants you an automatic extension until October 15, 2009.
If you don't file anything, you will receive a Failure to File Penalty. The IRS will charge you 5 percent per month on all income taxes due. That breaks down to $50 for every $1000 you owe per a month.
You don't have enough money to pay
If you don't pay your taxes, you will be hit with an interest charges and 1/2% per month penalty on the unpaid balance. Fox Business reports a few options to help your taxes get paid:
- Borrow the money- from family, relatives, etc.
- Charge it- to be used if you have a low credit card balance
- Payment plan- with a 52$ fee when you pay electronically and 8 percent interest
Look over it carefully. If your refund seems high, increase your exemptions. AuWerter says "Getting a refund is great, but ideally you want to shoot for getting a small one rather than a really big one."
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