2016 Income Tax Deadline: Last Week to File Returns

Updated April 14

Procrastinators – and who isn’t when it comes to filing their income taxes? – are in luck this year.

You have an extra weekend to buckle down, compile and submit your tax returns. But time is running out and we have tips to help you complete the dreaded paperwork.

Because of a holiday in the nation’s capital, the filing deadline to submit 2015 tax returns is Monday, April 18, 2016, rather than the traditional April 15 date.

The Internal Revenue Service says that Washington, D.C., will celebrate Emancipation Day on Friday, April 15. That, in turn, pushes the federal tax deadline to the following Monday for most of the nation.

The holiday marks the end of slavery in Washington, D.C., in 1862, according to the D.C. mayor's office. The IRS considers holidays observed in the District of Columbia are legal holidays across the country, NPR reports.

Due to Patriots Day, the deadline will be Tuesday, April 19, in Maine and Massachusetts.

Filing Deadline Dates

In Maryland, if you both file and pay electronically, your return is due April 18. However, taxpayers have until April 30 to make an electronic payment via your personal computer using the state's free online service.

Most states also require income taxes to be filed on April 18, but there are exceptions. Louisiana gives residents until May 15 to file, Virginia's deadline is May 2, and the Iowa deadline is April 30, according to efile.com.

If you need more time to file, you can also use IRS Free File to get an automatic six-month extension to file your taxes. But if you owe taxes, those must be paid April 18, even with an extension to file your return.

Taxpayers who can’t pay the taxes they owe by April 15 may set up a monthly payment plan using the Online Payment Agreement option on IRS.gov.

If you can pay the full amount you owe, while seeking an extension, complete IRS Form 4868, attach a check or money order and mail it to the IRS address indicated on the form’s instructions by April 18. FOX Business experts suggest sending it by certified mail. Put your Social Security number, the tax year, and ‘Form 1040’ on the memo line of the check to ensure that it is credited to your tax account.

Paying Taxes With Cash

The Internal Revenue Service recently announced a new payment option for people who need to pay their taxes with cash. In partnership with ACI Worldwide’s OfficialPayments.com and the PayNearMe Company, taxpayers can make a payment without the need of a bank account or credit card at over 7,000 7-Eleven stores nationwide.

Individuals wishing to take advantage of this payment option should visit the IRS.gov payments page, select the cash option in the other ways you can pay section and follow the instructions. Since it's a three-step process, don't wait to start this process, officials urge.

Last-Minute Filing Tips

The IRS has these tips to help the procrastinators:

• File electronically. Filing electronically, whether throughe-file or IRS Free File, vastly reduces tax return errors, as the tax software does the calculations, flags common errors and prompts taxpayers for missing information. And best of all, there is a free option for everyone.
• Mail a paper return to the right address. Paper filers should check the appropriate address where to file in IRS.gov or their form instructions to avoid processing delays.
• Take a close look at the tax tables. When figuring tax using the tax tables, taxpayers should be sure to use the correct column for the filing status claimed.
• Fill in all requested information clearly. When entering information on the tax return, including Social Security numbers, take the time to be sure it is correct and easy to read. Also, check only one filing status and the appropriate exemption boxes.
• Review all figures. While software catches and prevents many errors on e-file returns, math errors remain common on paper returns.
• Get the right routing and account numbers. Requesting direct deposit of a federal refund into one, two or even three accounts is convenient and allows the taxpayer access to his or her money faster. Make sure the financial institution routing and account numbers entered on the return are accurate. Incorrect numbers can cause a refund to be delayed or deposited into the wrong account.
• Request a Filing Extension. For taxpayers who cannot meet the April 15 deadline, requesting a filing extension is easy and will prevent late filing penalties. Either use Free File or Form 4868. But keep in mind that while an extension grants additional time to file, tax payments are still due April 15.
• Owe tax? If so, a number of e-payment options are available. Or send a check or money order payable to the “United States Treasury."

Warnings on Phishing Scams

IRS officials and Maryland Comptroller Peter Franchot are warning taxpayers to be alert to new phone and email phishing scams trying to trick victims into divulging their personal information.

“If anyone calls you or sends you an email asking for your Social Security number, don’t respond,” Franchot said. “If these scammers try to talk you, hang up immediately. These are criminals trying to steal your identity and take your money.”

The IRS said scammers are calling or emailing taxpayers to verify the last four digits of their Social Security number by clicking on a link provided in an email, which claims that recent data breaches across the nation may be involved.

Government offices do not send emails like this, authorities said.

Taxpayers should not reply to emails requesting confidential information, especially your Social Security number, birth date, salary information or home address. If you receive an email asking for a copy of your W-2 form, you should immediately contact your employer. You also may call 1-800-MD-TAXES or emailmdcomptroller@comp.state.md.us.

Speedy Refunds

Choosing e-file and direct deposit for refunds remains the fastest and safest way to file an accurate income tax return and receive a refund. The IRS says it will likely issue more than nine out of 10 refunds in less than 21 days.

If you haven’t filed yet, the IRS has these tips to help you.

• Gather your records. Make sure you have all yourtax records. This includes receipts, canceled checks and other records that support income, deductions or tax credits that you claim. If you purchased health insurance through the Marketplace, you will need the information in Form 1095-A to file.
• Report all your income. You will need to report your income from all of your Forms W-2, Wage and Tax Statements, Forms 1099 and any other income – even if you don’t receive a statement – when you file your tax return.
• Use Direct Deposit. The fastest and safest way to get your refund is to combine e-file with direct deposit. The IRS issues more than nine out of 10 refunds in less than 21 days.
• Review your return. Mistakes slow down your tax refund. If you file a paper return, be sure to check all Social Security numbers. That’s one of the most common errors.
• Visit IRS.gov. The website has forms and other info you need to file your tax return. Click on the "Filing" icon for links to filing tips, answers to frequently asked questions and IRS forms and publications. The IRS has many online tools on IRS.gov to help you file and answer your tax questions. The tool gives the same answers that an IRS representative would give over the phone.

Make The Most of Your Refund

WalletHub offers some advice on what to do with your refund -- have it direct deposited rather than put on a prepaid card -- and what to spend it on.

• Direct Deposit over Prepaid Cards: Many tax preparers and some states offer to pay tax refunds via prepaid card, but those cards often charge multiple fees that lower your refund. If possible, direct deposit is the best way to receive your refund.
• Pay Off Debt: Start with credit card debt, which often carries a high interest rate, then tackle other debts you owe.
• Invest Your Refund: Experts suggest putting your money in an IRA to lower next year’s tax burden, adding to a college savings plan, or building a stock portfolio.
• Reevaluate Withholdings: Receiving a large refund means that you are paying too much in taxes and you could reduce paycheck withholdings to spend on your priorities, rather than letting the government to use it interest free.

Options for Software Tax Programs

TurboTax, H&R Block, TaxAct and other software programs can walk you through your return, but you still have to have all your paperwork in order. Here’s how the programs compare, courtesy of The New York Times.

How to Pick a Tax Firm

The Better Business Bureau offers the following tips on how to find a trustworthy tax preparer:

• Get referrals from friends and family on who they use and research free BBB Business Reviews on tax preparers and tax preparation services atbbb.org.

• Be skeptical of tax preparation services that promise larger refunds than the competition, and avoid tax preparers who base their fee on a percentage of your refund.

• Look for credentials. Your tax preparer should either be a certified public accountant, a tax attorney, an enrolled agent or a certified E-file provider. Make sure they have a Preparer Tax Identification Number (PTIN).

• Remember that a paid preparer is required by law to sign your return and fill in the preparer areas of the form. They should also include their appropriate identifying number on the return. And, the preparer must give you a copy of your tax return.

Health Care Proof, New Document

Many taxpayers are puzzled by a new form that arrived this year, thanks to the Affordable Care Act: the 1095-C. The form for health care was sent to people who havehealth insurance through a large employer.

The 1095-C is created and sent by your employer, which also sent a copy to the Internal Revenue Service. It contains information about the type of health coverage that your employer offered for the previous year, and serves as official proof of insurance in case you are audited, an expert told The New York Times.

And remember, there are penalties for those who did not have health care coverage last year, and they are climbing. Penalties rose to $285 per adult, or 2% of income above the filing limit in 2015. For 2016, penalties will increase to $695 per adult, reports USA Today.

Getting Ready for Next Year's Taxes

Experts suggested creating a simple filing system to keep track of pay stubs, receipts, and any other information you’ll need when April 2017 rolls around.

That system can be as easy as five envelopes: a large manila envelope and four standard white envelopes, dedicated to insurance receipts, medical, home/ car repairs and “other,” says WalletHub. Another option is to keep a file for the current year’s taxes and record information about tax-related items – such as charitable deductions, tax payments, medical expenses and business expenses – as they occur.

Taxpayer Rights

Every taxpayer has a set of fundamental rights they should be aware of when dealing with the IRS. These are yourTaxpayer Bill of Rights. Explore your rights and IRS obligations to protect them on IRS.gov.

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