Reminders as April 15 Approaches

Tips for those who haven't filed — and for some who have

Here are some of the things you may want to be thinking about as April 15 approaches.

Free filing

TaxAct's incomparable deal is still available. They make their high quality tax software available free of charge, including free online filing, without artificial limits on income or the complexity of your return. You can prepare your return online, or download their software to your computer, free of charge.

Avoid rebate credit errors

The single biggest source of mistakes this year is the recovery rebate credit. If you have any doubt at all about how this works, read our explanation.

Extend yourself

If you can't file your return by April 15, file Form 4868 by that date for a six-month extension. This form doesn't extend the time to pay any tax you might owe, but you should file it even if you can't come up with the cash. Otherwise you'll have the added burden of a late filing penalty on top of your other problems

IRA contributions

April 15 is also the last date to make an IRA contribution for the previous year. If you're sending in a payment now, be sure to specify the year for which you're contributing. You can do this even if you've already filed your return, although you may have to amend that return if you're contributing to a traditional IRA. You generally don't have to amend if you're contributing to a Roth.

Speaking of which . . .

If you made contributions for 2008 to an IRA, or to a retirement plan where you work (such as a 401k or 403b), you may be eligible for the retirement savings contribution credit, a benefit that's easy to overlook. If you're unsure whether you qualify, read our description of the credit.

Estimates due

If you're required to make estimated tax payments for 2009, April 15 is also the deadline for the first installment. Click here if you need the form.

Demutualization

Did you pay tax on a sale of stock received in an insurance company demutualization? A preliminary ruling indicates you may be eventually entitled to a refund — but not if you've allowed the statute of limitations to expire. For most taxpayers, April 15, 2009 is the deadline to act for refunds relating to the 2005 tax year (returns due April 15, 2006). For more information see our earlier article on the demutualization tax issue.

Mark-to-market

If you're a trader as defined for tax purposes, you may want to consider making the mark-to-market election. The deadline to make this election for the current year is April 15, even if you file your tax return on extension. For more information read our book Capital Gains, Minimal Taxes or visit our free online Guide to Trader Taxation.

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