Last-Minute Tax Tips

The filing deadline for 2019 federal income tax returns is April 15, 2020. Although the date is approaching quickly, there is still time to take steps that might lower your tax liability and facilitate your taxpaying experience.

Boost Savings, Lower Taxes

Deductible 2019 contributions to a traditional IRA and/or a health savings account (HSA) can be made up to the tax filing deadline, not including extensions. If you do not yet have these accounts and meet appropriate qualifications, you can open them before the deadline and still contribute for 2019. You must notify the custodian of your IRA or HSA that your contribution is for the 2019 tax year.

If you were under age 70½ and had earned income, you may be eligible to make a 2019 contribution of up to $6,000 to a traditional IRA ($7,000 if you're age 50 or older).* If you or your spouse participate in an employer-sponsored retirement plan, eligibility to deduct contributions phases out at higher income levels.

If you were enrolled in a qualified high-deductible health plan (HDHP) during all of 2019 (or qualify under the "last-month rule"), you can make a 2019 HSA contribution of up to $3,500 if you had self-only HDHP coverage or $7,000 if you had family coverage. Each eligible spouse who is 55 or older (but not enrolled in Medicare) can contribute an additional $1,000 to his or her own HSA. Although most people contribute to an HSA through pre-tax payroll deductions, direct contributions can generally be made up to the tax filing deadline.

Check Your Return

Double-check your math if you do calculations by hand. If you use tax software, scan the entries to make sure the math and other information are accurate. Be sure to enter all income, and use good judgment in taking deductions. Keep all necessary records. If you are not comfortable preparing your own return, work with a qualified tax professional.

Apply for an Extension, But Pay Taxes Due

If you can't meet the deadline or just want more time to consider your tax situation, you can obtain an automatic six-month extension by filing IRS Form 4868 by the original due date of your return. For most individuals, the extension deadline for 2019 returns is October 15, 2020.

An extension does not postpone payment of any federal income tax that is due. Estimate your tax liability and pay any tax that is due by the original filing deadline. Any taxes not paid by the regular due date will be subject to interest and possible penalties.

Beware of Tax Scams

Tax scams can occur at any time, but they're especially prevalent during tax season. Thieves may use your identity to fraudulently file a tax return and claim a refund. You might even receive phone calls or emails claiming to be from the IRS.

Be aware that the IRS will never initiate contact with you by email to request personal or financial information, and the agency will never call you about taxes owed without sending a bill in the mail. If you think you may owe taxes, contact the IRS directly. Visit irs.gov/help for official contact information as well as information about detecting and reporting tax scams.