| Your Master Tax Advisor/ Mei-Feng Moe Tax Season: Have you filed your returns? |
| When filing your tax return, be sure to claim all the tax credits and deductions afforded by the tax laws. The IRS web site, www.irs.gov provides tax tips on claiming tax credits, including the education credit, saver's credit, child care credit, child tax credit, additional child tax credit, etc. that we have covered in the past. One credit I must emphasize is the saver's credit -- if you are eligible, you need to take advantage of this great savings tool before it's gone! 2006 will be the last year this credit is available and you have until April 15 of 2006 to make IRA contributions for 2005 credit. I recently helped a client to get $1,823 more refund from contributing $1,370 into an IRA for 2005. This extreme situation does not happen to everyone, but with the right combination of income level along with other credits available, you could be saving a lot of money! For more details on how this credit works, review the April 2005 issue or check out the IRS web site. If you are unable to get your return filed on time, you'll need to file an extension (form 4868) with the IRS by April 17th. A new rule effective for 2005 tax return that benefits the taxpayers: Form 4868 will give you an automatic 6-month extension instead of 4 months -- You no longer need to file a second extension for the additional 2 months. You do not need to file a separate extension for Wisconsin if the federal form is filed. You'll simply attach a copy of your federal extension form to the back of your Wisconsin return when it's completed and filed. One important thing to note is that extension only gives you more time to file your return, but it does not give you more time to pay your taxes. If you think you may owe taxes, the estimated tax amount may be paid with form 4868 when it's filed with the federal. Wisconsin estimated tax needs to be sent in with form 1-ES. Another option of paying your taxes is by using a credit card (American Express, Discover, MasterCard, or Visa.) You may pay different types of taxes for federal and Wisconsin through the Official Payments Corporation. The payments can be made by phone,1-800-2PAY-TAX (1-800-272-9829) or by the Internet, www.officialpayments.com. The Official Payments Corporation charges taxpayers a convenience fee of 2.5% of the payment amount, with a minimum fee of $1.00. As April 17th draws near, now is the time to make your final decisions related to your 2005 tax returns. Remember April 17th is the deadline. About the author Mei-Feng Moe is a Master Tax Advisor certified by H&R Block. In additional to giving tax advice and preparing tax returns, she has also been teaching income tax courses for a number of years. She is an Enrolled Agent who may represent clients before the IRS. She also holds series 6 and series 63 security licenses. This column welcomes your questions on tax issues. Please e-mail your tax questions to dlc@triwest.net. The questions will be answered in a future issue. |
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| It's almost the end of tax season. The normal due date of your income tax return, April 15th falls on a Saturday this year, so you have until Monday, April 17th to get your 2005 returns filed. |
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