The euphoria of submitting your tax return is undeniable – it feels like a massive burden has been lifted off your shoulders. However, before you completely let go and move on with life, it’s essential to address certain post-tax filing responsibilities. Here are five crucial steps that every diligent financial steward should take after handling their taxes.
Keep Your Records Accessible and Secure
Although you may feel an impulse to discard all the paperwork once your return is complete, holding onto a few documents for a while can prove vital in case of follow-up queries or unexpected issues. Retain your records until you receive your tax refund or are notified that the IRS has processed your payment (which you should verify with your bank).
While it was previously standard practice to keep tax returns for seven to ten years, advances in technology have made digital storage a convenient option with no need for time limitations. This change offers greater security and convenience when it comes to long-term record keeping.
Store Your Tax Documents According to Your Unique Situation
Your personal tax situation will dictate how long you should keep your documentation. Utilize the following tax checklist as a guide:
- If you’re self-employed, keep records for seven years after filing the return.
- For those who claim depreciation or amortization deductions, retain documents for four years beyond the date when such deductions cease to apply.
- Keep records for three years if your return was affected by a loss from worthless securities or bad debts.
- Hold on to files for at least two years if you failed to report all income or filed an incomplete return.
Check the Status of Your Filing
Whether you file electronically or mail in your return, you’ll want to ensure that your documents have been processed and accounted for by the IRS. If you e-file, you can verify your status as early as 24 hours after submission; for mailed returns, this process will take up to four weeks.
To check your filing status, use either the IRS’s online form or download their IRS2Go app. You’ll need your Social Security Number, filing status, and exact refund amount to log in. By doing so, you’ll gain peace of mind and avoid potential problems that may arise down the line.
Ensure Payment of Owed Taxes and Request a Payment Plan if Necessary
If you owe taxes after your filing is complete, it’s crucial to pay what you owe by April 15th. While e-filing often allows for payment at the same time, mail-in returns require sending a check or money order with your paperwork. The IRS also offers an online platform where you can make payments through direct bank transfer, credit cards, and debit cards.
In some cases, paying all owed taxes immediately might be challenging. In these situations, you can request a payment plan through the IRS’s online payment agreement application. If you meet their requirements, these arrangements are generally straightforward to obtain. Once accepted, it’s imperative that you adhere to your agreed-upon repayment schedule. Failing to do so comes with consequences.
File an Extension if Struggling with Tax Deadlines
In the event that you find yourself unable to complete and file your taxes on time, you can request a six-month extension by filing Form 4868. This form is automatically granted as long as you fill it out correctly before the original due date. Extensions will shift your return deadline from April 15th to October 15th, giving you more time to gather your paperwork and calculations.
As soon as you’ve checked off these five tasks, take some time to celebrate. You deserve it after successfully navigating the complex world of tax returns! Remember, being financially responsible doesn’t mean sacrificing enjoyment or self-care; finding a healthy balance is crucial for long-term financial wellbeing.
So, what do you do after filing your taxes? And how will you commemorate this accomplishment?
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