Video transcript:
Tracy Byrnes: All right, it's that time of year. We are coming up on the tax deadline. I can't believe I'm even saying that. But there's a lot of last-minute things you’ve got to think about. Miguel Burgos, CPA, TurboTax Live expert is here with us right now. Miguel, what do people need to know, because they're going to start scrambling?
Miguel Burgos: Well, we have a few things. As you know, the deadline this year is going to be a Monday, Monday 15th of April 2024. And a few things. First of all, remember: always the best and most efficient way to file your return, it's filing electronically with what we know as e-file, and also getting your refund as direct deposit. These statistics with the IRS are consistent: 9 of every 10 taxpayers — 90% of the taxpayers — will get their refund in 20 days or less if they file electronically and get their refund through direct deposit.
Tracy Byrnes: Right. So don't be afraid and fill all that out online. Make sure the numbers are accurate. Don't transpose numbers. I've been there. It'll delay. So double check your math. Let's talk about some last-minute opportunities to save some money too. And the retirement plans are one of the biggest places where people can benefit.
Miguel Burgos: Yeah, first of all, time is of the essence. Start as soon as possible. You don't have to wait until the 15th or 14th or 13th of April. Gather all your documents — if you have 1098s for mortgage interest, if you have any charitable deductions. Although most of the taxpayers get the Standard Deduction, there is still a possibility you might benefit from itemizing. Additional to that, you still have some opportunities all the way until the tax deadline.
You can still contribute if you qualify based on the income and other requirements for a traditional or a Roth IRA. If you get a traditional, you're able to claim a tax deduction. It's up to $6,500 for 2023 tax year. And if you're 50 or older, you can get an extra $1,000. You can contribute up to $7,500.
And additional to that, for those that are self-employed or those that are interested in a SEP or a SEP opportunity, they get up to $6,000 or 25% of their compensation, whichever is less. And with this one, they have an additional opportunity because if they get an extension, they can extend that deadline for that contribution all the way until the due date of the extension up in October.
Tracy Byrnes: Right, which we should touch on, right? So there may be people that just won't have it together in time on April 15 and might want to extend to October 15. But let's reiterate, right? That doesn't mean your bill gets extended as well. You’ve got to pay your bill.
Miguel Burgos: That's correct, Tracy. It's very important for the taxpayers to understand. If you file form 4868 with an automatic extension, that gives you more time to gather your documentation and submit your tax return. Now, if you're one 1 out of every 4 taxpayers, so, that 25% of the taxpayers that are expected to owe or have a balance with the IRS when filing the tax return, the IRS still expects for you to send the tax payment on time by the deadline on April 15.
So if you realize that you're going to owe, there are other options. And once again, if you encounter yourself in this situation, you're not on your own. With services like TurboTax Live, you can actually get a lot of tax resources, articles, and also talk to live experts, CPAs, enrolled agents, tax attorneys, and other experts that can help you to identify what's your situation, what's the tax law that applies, and what will be the most beneficial tax course in your specific case.
Tracy Byrnes: Right. And people should know too that there are payment plans. Uncle Sam basically just wants you to know that you're paying attention, that you have this bill, you don't know how to pay it, and you need some help. That pretty much it, right? And then you can go on an installment plan and there's other things and opportunities out there.
Miguel Burgos: Correct. And that's one of the options. You can apply for an installment agreement. Many times you can either do it directly with the IRS on the website. But also, with TurboTax, we can help. We have the ability to make available the tax form that you are required to file and all the required information so you can apply for an installment agreement.
Tracy Byrnes: Miguel, before I let you go, what are some of the deductions that people often forget to deduct the most?
Miguel Burgos: Well, I think many taxpayers, they take for granted that they just qualify for the Standard Deductions. But there's a lot of opportunities. Mortgage interest. If you pay taxes, state taxes, that can be your state income tax or your state sales tax; property taxes, mortgage interest, charitable donations that you made to any sort of qualified charitable institution. So there are many, many options. For those that are teachers, for those that are self-employed, if they pay self-employment tax, they get to write off half of that self-employment tax.
So there are many options. If you are not sure, start as soon as possible. You can go to turbotax.com. We have TurboTax Live. We have tax experts that can help you live and can talk to you and answer any of those questions, and ask the important questions to make sure that you don't miss any of those deductions or credits.
Tracy Byrnes: Yeah, that's a great point. There's no reason to wait. People are starting to get their tax forms in the mail now. Get going. Don't wait till the last minute. Miguel Burgos, CPA, TurboTax Live expert. Thank you for clearing all that up.
Miguel Burgos: It's always a pleasure.
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