Tax Procrastinator? Deadlines Approaching-Here’s What To Do Next

Are you a tax procrastinator?

For many, tax time is an inconvenience and quite frankly, a nuisance. Day to day life can be hectic. When you walk into your kitchen there is probably a corner stacked with bills, right? You know the one. Somewhere in there is some information about a very important day coming up.

April 17th, 2018

It is here once again and if you’ve been procrastinating up to this point, this is your ‘last call’ so, round up those documents and find a trusted resource to file for you. Haven’t even thought of it yet? No worries, you’ve got about one week left!

Here’s what you need in order to file:

1. Personal Info-social for yourself, spouse, and dependents
2. W2’s for 2017
3. Childcare expenses
4. Charitable contributions
5. Medical expenses

Additional:
1. Self employment info
2. Retirement info
3. Rental income
4. State and local taxes or sales tax
5. Educational expenses
6. Job expenses

credit consultation

What happens if I don’t file my taxes? Well, I am glad you asked!

The serious consequences that can happen are as follows:

  • The IRS will penalize you (seizing money from your bank)
  • Late filing penalties
  • Put a lien on your property
  • Garnish wages
  • Take more money as well as wages

Not to mention the unnecessary stress all this can cause you or your family. For some, filing could mean a tax refund! For others, having to pay may be what is keeping them from filing. Should you be worried about the ability to pay the money or not, the IRS still wants you to file. In an effort to help with this, they conveniently have an option for a payment installment plan.  

If you have questions about reliable resources or could use help with tax liens or judgments, please reach out to an attorney at Credit Law Center, they would be happy to assist you!

 

 

A note from the author:The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington

Nine Things Smart People Do With Their Tax Refund

Saving money and investing is kind of like that New Year’s resolution you made. You know it’s worth it and you’ve said you’ll do it but a week later you’re back to old ways. We are ready to commit to being wise with our money this year-starting with the tax refund! Here is a handful of ways to use that extra money now. Let’s work smarter, not harder this year.

1. Pay Your Debts: As obvious as it sounds, start paying off your credit cards. Once those are taken care of, you’ll be able to really start saving money by no longer paying those low monthly payments towards your cards that are acquiring interest as well. This will also help your credit scores if you are keeping your balances as low as possible while still using them.

Serious man and woman sitting at kitchen table in front of open laptop computer looking at screen with concentrated expression focused on paying utility bills online. Family budget and finances2. Prepay Your Mortgage: Life happens! This is a great way to plan ahead and  take some stress of you and your family. This will also help in reducing the principal. This has a huge impact on the life of the loan. Working smarter, not harder!

savings3. Hide it! Not literally, but save it! Put a portion of that extra money away for something bigger. You may not even know what you’d use it for right now. This may encourage you to start saving as well and continue to grow that savings up even more.

4. Prep For Future Plans: If your family is planning to have kids or expecting soon, setting aside money for the baby fund is a must. Time off from a job to stay home caring for the little one, or unexpected bills in the first few months happens frequently. Knowing that you have set aside some money may put your mind at ease and a little less stress on the new parents.

</p5. Invest In Stocks: Though this may seem risky, the benefits seem to speak for themselves. The fluctuation in the market may sound like a huge risk, but long term will be great if you have no immediate need for using the tax refund. Research individual stocks or an index fund that that moves along with the market.

stocks6. Grow the College Fund: There is no time like the present to start saving for your children’s future. A 529 plan can help you especially with the rising cost of college and the amount of debt most students incur. They will be thankful for this gift when they graduate with a diploma and little to no debt dragging behind.

7. Home Improvements: If your bills were high this year you may look into replacing old units and making your home more energy efficient. Refinishing or updating is also a great investment if you decide to sell later on.

New Sheetrock Drywall & Ladder Abstract Background8. Emergency Funds: Job loss, medical emergencies or a major home repair may force you to lean on loans or credit cards. Using the refund could alleviate a little bit of the stress in these unforeseen circumstances. Keep these funds somewhere you won’t dip into and use for things not inside of the “emergency fund” scenario. You’ll be glad you did.

doctors9. Tackle Credit Issues: Being denied financing, paying high interest or getting turned down completely due to credit issues is deflating! Look into getting your credit cleaned up with a company that specializes in tackling these issues. Research companies and read up on what they do. In order to spend your money wisely, steer clear of companies that charge monthly fees that are in no hurry to work quickly.
A Note From The Author: The opinions you read here come from our editorial team. Our content is accurate to the best of our knowledge when we initially post it.

Article by Breana Washington