The IRS has extended the tax deadline, which would normally be today, until May 17, 2021. Individual taxpayers who need additional time to file beyond the May 17 deadline can request a filing extension until Oct. 15 by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. While this may apply to your federal tax return, bear in mind that it may not apply to state returns. In the words of the IRS:
“The federal tax filing deadline postponement to May 17, 2021, only applies to individual federal income returns and tax (including tax on self-employment income) payments otherwise due April 15, 2021, not state tax payments or deposits or payments of any other type of federal tax. Taxpayers also will need to file income tax returns in 42 states plus the District of Columbia.”
Take a look at your state’s tax return requirements to get the details on your specific deadline.
To celebrate this extension, we will go through a few things to consider if you are looking to maximize your tax refund and save money while doing so! Here are our top 8 tax considerations for this year’s tax season:
- File for Free! You heard that right. With Military One Source’s Miltax services you get free H&R block software that you can use to file your taxes. I used it myself this year and it’s incredibly thorough and easy to use!
- Confirm that you received your economic impact payments last year. If you didn’t, you may be eligible for a recovery rebate credit.
- Deduct your charitable donations. If you are trying to itemize your deductions, keep track of those charitable donations. Cash donations and gifts in kind can be deducted from your taxes
- Don’t forget real estate taxes and interest. If you own a home or a few rental properties, don’t forget to take a look at how much you paid in interest and property taxes. Ensuring that this is accounted for could save you a lot of money.
- Don’t forget tax credits. Talk to your tax advisor about the lifetime learning credit, earned income tax credit, child tax credit among others. Doing so will help you maximize your return.
- Get an automatic extension when you are deployed. Notify the IRS of your deployment to avoid issues if you don’t meet the filing deadline.
- Look into the Sale of Primary Home Capital gain exclusion if you sold your home. Doing so could save you a significant amount of money if you sold your home this past year.
- Compile all of your documents before beginning your taxes. This will save you time and energy as you seek to maximize your return.
This list is not meant to be all-inclusive or substitute a formal opinion. We highly encourage you to talk to a tax professional before filing your taxes this year. Best of luck to everyone this tax season!
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Military Money Matters 