The IRS tax deadline for 2016 has moved three days. Due to an overlap of tax deadlines and Federal and State holidays, the IRS announced that taxes are due Monday, April 18th instead of Friday, April 15th. Last minute taxpayers will have one more weekend to work on their tax returns.
We can thank the District of Columbia for moving the date to Monday April 18th. In the District of Columbia, Friday, April 15th is a holiday (Emancipation Day). Normally observed on April 16th (Saturday), the holiday was pushed back to Friday. The April 18th date also affects the deadline for the first installment payment of estimated income tax.
If you live in Maine or Massachusetts, your IRS tax deadline is Tuesday, April 19th. These two states observe “Patriot’s Day” the third Monday in April, which happens to fall on the 18th this coming year.
Speaking of dates, don’t forget you still have a couple of days to get in those extra deductions. If you’re a business, head for the office supply stores and stock up before 2016 to take advantage of deductibles. If your business has a major capital expenditure coming up, you may want to consider making it at the end of this year. If you give out bonuses, you may want to get them in before the end of the year, or if you need the deduction for 2016, defer the bonuses until after January 1st.
Homeowners may want to make an extra mortgage payment before January 1st to help with 2015 taxes. If you qualify, you can make an IRA contribution. If you are in a higher tax bracket such as 35%, you can make a $5,500 contribution (the maximum amount for 2015 or $6,500 for people 50 and older). On average, you’ll save almost $2,000 in taxes making this contribution. Individuals can also make last-minute donations to their favorite charity. Most charities have online websites where a donation can be made within minutes.
If you lost money on a capital investment (like a stock) you can use that loss to reduce your taxes. You’ll have to sell the stock at a loss (a process called “realizing”). Once sold, you can use it to offset any capital gains you may have, allowing you to avoid paying tax on the capital gains.
Many taxpayers don’t realize they can claim casualty losses such as theft, car accidents, and storms/storm damage. If you moved for a job, you can deduct moving expenses. There are also deductions for tuition, student loan interest, education tax credits, child tax credit, dependent care credit and child and education tax credits.
If you have medical bills, and you know you’ll qualify to meet the threshold for medical expenses, consider making extra payments now. You can also buy glasses, contact lenses and/or other medical equipment for extra deductions.
Consider hiring a Tax Attorney to ensure you receive every deductible possible. A qualified tax attorney is an expert in the tax world. At Gantenbein Law Firm in Denver, Colorado, all of our tax attorneys also have Master’s Degrees in taxation. If you owe $5,000 or more in taxes, the IRS is investigating you, you haven’t filed back taxes, you’re starting a business and want to be have the best structuring or want to prepare an estate plan or filing an estate tax return or generally dealing with any tax issue you don’t understand, please call our lawyers at 303-618-2122 to discuss your tax issue. You can also visit our Tax Law webpage to view your best options for hiring a tax attorney.