9 Tips for Filing Your Taxes Late

Filing your taxes is a necessary task. Some do it as soon as they receive their W-2s or 1099s, and some leave it until the last minute. While we certainly empathize with procrastination, filing late certainly can add to the stress of taxes.

Here at Addition Financial, we always want our valued members to have the guidance and information they need to take care of their taxes. Since we recognize that some people wait until the last minute, or even miss the deadline, we put together this helpful guide. We’re sharing our top 9 tips for filing your taxes at the last minute, from where to begin to requesting an extension to avoid penalties. 

#1: Gather Necessary Documents

Our first tax tip is to gather all of the documents you’ll need to complete your income tax return before you begin. Here are the documents you’ll need.

• A W2 from every employer
• 1099 forms from companies that hire you as a contractor or freelancer
• Receipts for deductible expenses

If you’re self-employed, your small business income is passed through to your individual income tax unless you’ve organized your company in a way that requires you to file a business tax return as well (sole proprietorships, partnerships and some LLCs are pass-through organizations). That means you’ll need both business and personal receipts if you plan to itemize deductions.

#2: Research Tax Deductions and Credits

One of the most common tax filing mistakes is not taking advantage of every tax deduction and tax credit available to you. It’s easy to overlook deductions either because you don’t know about them or you’re worried that taking a deduction will lead to an audit.

Here are some of the deductions and credits that are commonly overlooked:

• Earned Income Tax Credit
• Retirement Savers’ Tax Credit
• Lifetime Learning Credit
• Home Office Deduction
• Tax-Deductible HSA Contributions

If you’re not sure which credits and deductions you’re eligible to take, you may want to consider working with a tax professional to make sure you’re not overpaying on your taxes.

#3: Determine Which Forms You Need

It can be stressful to be in the middle of preparing your taxes and learn that you need an additional form or schedule. It’s for that reason that we recommend figuring out that part of the tax filing process before you start.

You’ll need some version of Form 1040. If your taxes are very simple, you may be able to file using 1040-EZ. Form 1040A is the second option and may be used by many tax filers with income under $100,000. Form 1040 is the longest and most complicated option.

In addition to Form 1040, you may need additional forms. Some examples include Schedule EIC for the Earned Income Tax Credit or Form 2106 for business mileage.

#4: Choose Your Deduction Method

There are two deduction methods available to you. The first is to take the standard deduction, which for the 2023 tax year is $13,850 for single filers and for people who are married and filing separately; $27,700 for married couples filing jointly; and $20,800 for heads of household.

The second method is to itemize your deductions. You should choose this method only if the total of all itemized deductions is higher than the standard deduction for your filing status. Itemizing is a more involved process, so it doesn’t make sense to do it unless you’ll lower your taxes owed or increase your tax refund by doing so.

#5: Don’t Rush

You might feel pressure to get your taxes prepared quickly if you’ve waited to do it until late into tax season. That said, it’s not a good idea to rush your tax preparation. Rushing is one of the most common causes of tax filing mistakes.

We suggest taking a methodical approach to filling out your tax return. If you have all your documents together, you’ll have the information you need to complete your return without mistakes. Read the instructions for each form and schedule carefully. That way, you won’t be speeding through the process or making assumptions about what to enter on each line of the form.

#6: Use Tax Software

A lot of people find it helpful to use tax preparation software to prepare their taxes. We recommend using software if you’ve got a complicated tax situation or you plan on itemizing deductions.

You don’t need to pay a lot of money to take advantage of tax software. TurboTax has a free version and so does H&R Block. You can also take advantage of Guided Tax Software from the IRS, which you may use if your adjusted gross income is $79,000 or less.

#7: Double Check Your Personal Information

People who are anxious about their taxes may be at risk of making mistakes on their tax return. Even a small mistake can lead to additional stress. It’s for that reason that you should always double check your personal information before you file.

We suggest rechecking your name, address, birth date, Social Security Number and adjusted gross income. You should also make sure to address your envelope properly if you’re filing by mail.

#8: File Your Taxes Online

You have multiple options for filing your taxes online, and online filing is the best way to make sure your return can be done at a reasonable rate. It will also expedite your tax refund if you’re getting one. The IRS has two approved options for online filing:

Direct File

Direct File is a pilot program from the IRS that is now available in 12 states. These include AZ, CA, FL, MA, NV, NH, NY, SD, TN, TX, WA and WY. 

With Direct File, you can file your taxes directly with the IRS without paying any fee. We anticipate that if the Direct File pilot is successful, the IRS will expand the program to all 50 states.

IRS Free File

IRS Free File is a program that allows taxpayers to file their taxes for free using an IRS approved partner. If you’re not in a state that’s already using Direct File, then Free File is a good option.

You can find a full list of Free File approved partners on this page. Choose one, and you’ll learn which information you need to complete your tax return with them.

#9: Request an Extension to Avoid Late Fees and Penalties

You might be wondering, is there a way to get an extension since I didn’t meet the April deadline? The short answer is yes, there is. If you’re filing online, you can submit a request for a six-month filing extension through your Free File provider. You have two other options as well:

• Complete Form 4868 to request an extension
• Make an estimated payment online and indicate that the payment is for an extension

It’s extremely important to understand that a filing extension is not a payment extension. When you request an extension, you should pay any amount that you believe is due. You can do so through your Free File provider or directly online with the IRS. Making a payment if you owe taxes is the best way to avoid late payment penalties.

Frequently Asked Questions About Taxes

Here are a few other questions that you might have about late filing.

What are the penalties for filing taxes late?

If you’re late filing or paying your taxes, you may be subject to interest, late fees and/or penalties. Here’s how they break down:

These numbers illustrate why making an estimated payment is necessary if you file for an extension.

What should I do if I realize I've made a mistake on my already-filed tax return?

If you realize you’ve made a mistake after you have filed your tax return, there’s a mechanism in place to correct it.

You’ll need to file Form 1040-X to correct your return. It is now possible to file 1040-X electronically and you should do so as soon as you realize that you’ve made a mistake.

How can I check on the status of my refund?

If you’re due a tax refund, you’ll get it more quickly if you e-file than if you file by mail. If you do e-file, you can check the status of your refund here within 48 hours of filing.

Manage Your Money with Addition Financial

There are ways to reduce the stress of filing your taxes late. The 9 last-minute filing tips we’ve included here will help you gather the necessary documents and file an accurate tax return. They can also help you avoid last-minute filing next year!

Do you need money management and financial tools to help you keep track of your money and collect information for your taxes? Addition Financial would love to have you as a member! Click here to learn about the benefits of membership and join today.