Tips help last minute taxpayers

If you are a procrastinator and always take the work to the last minute, there are high chances you pay taxes at the last minute too! The process of paying taxes may seem like a hassle to many. Firstly, you must gather all the documents required to file for Income Tax Returns or ITR, which sounds like a struggle. Then, you need to sit with all the documents and go through the online tax payment process. If you are planning to physically go and pay taxes, it might further seem like an inconvenience and you would keep delaying the process until the deadline comes close. This guide will provide tips that would help last-minute taxpayers go through the tax payment process efficiently. Tips for last-minute tax planning have also been included so that taxpayers can minimize tax liabilities.

Tips help last-minute taxpayers

In the blink of an eye, the deadline for tax filing arrives. In such a situation, what should the taxpayers keep in mind? Here are some tips that could help last-minute taxpayers-

1. Electronically file your taxes-

The fastest and simplest way to file your taxes is to file taxes electronically. Income Tax Returns (ITR) has the facility of e-file wherein all taxpayers can e-file their returns free and without trouble. One of the best tips that could help last-minute taxpayers would be this one, to file taxes electronically, as it eliminates the need to physically go and file returns, thus leading to saved time and effort. Over the years, millions of taxpayers have resorted to electronically paying their taxes. As the world is advancing towards technological evolution and progress, taxpayers are catching up. As per recent data, every year the number of taxpayers using the IRS e-file is increasing.

2. Carefully check the credentials-

If you are a last-minute taxpayer, we understand that you might be rushing to finish the tax payment work. In such cases, there are high chances that you mess things up. You may enter the wrong credentials. For instance, in a hurry to submit taxes before the deadline, you may end up fumbling while entering your identification numbers, particularly the Social Security number. Entering incorrect or incomplete Social Security numbers might delay your tax refunds, or even reduce them. Hence, this is one of the most important tips to help last-minute taxpayers.

3. Double-check your paperwork-

In case you are filing ITR offline, make sure that you double-trip-check the numbers and other details to avoid hindrance in the process.

4. Make sure to Sign wherever required-

If you are a last-minute taxpayer, one thing that usually goes out of mind is to put your signature on the documents, wherever required. Putting your signature and date on your return is extremely important to authorize the return. In case you are filing a joint return, both spouses need to sign on the ITR. In cases when you pay someone to prepare your return, that person also needs to sign, along with entering the Preparer Tax Identification Number.

5. Choose electronic payment-

To pay taxes, choose an electronic payment method as it is fast and safe. The use of debit or credit cards to pay taxes is by far the safest and one of the most secure ways to pay taxes. Along with that, electronic payment is also convenient, hence simplifying the process.

6. Send the return to the right address-

Make sure to mail the return to the right address. Last-minute taxpayers tend to make mistakes in such things as they are in a hurry to finish the work. To find the right mailing address, visit www.irs.gov

7. Carefully go through the instructions-

Carefully follow the instructions given while filing Income tax returns, or while paying. This is important as you may miss out on some vital information, especially now that you are in a hurry and paying taxes at the last minute. Doing any work at the last minute is when you are most capable of making mistakes. Hence, this is the time when you should take the most care.

4. File for extension of time-

In case you are caught in some work and haven't been able to go through with the process of filing a return, always make sure to file for an extension of time to file. However, you must take note that the extension of time to file does not mean that you are getting an extension of time to pay.

Last-minute tax planning tips

Some last-minute tax planning tips

1. Calculate taxable income in advance

You can calculate your taxable income using the Income tax calculator available on the Income tax department website

2. Utilise benefits of Section 80C

Section 80C of the Income Tax Act 1961 states that a deduction ₹1.5 lakh on you income can be claimed by a taxpayer for contributions in programs like Employee's Provident Fund (EPF), Public Provident Fund (PPF), National Saving Certificate (NSC), Equity Linked Savings Scheme (ELSS), but the best we recommend you is to Start investing in the National Pension System with PensionBox to experience the fastest & smartest way to save extra on tax benefits all while securing your retirement etc

3. Invest in health insurance

As given by Section 80D of the Income Tax Act, payment of health insurance premiums is eligible for deductions

Last-minute taxpayers sometimes end up messing up in the process of filing ITR at the last moment. PensionBox has tried to provide tips to help last-minute taxpayers. A detailed blog on what are some of the most important tips one can use if he/she is paying taxes at the last minute is given above. Keep reading PensionBox for more such tips!