The April 15 tax deadline is quickly approaching. If you haven't filed yet, here is a "last minute check list" of things to do between now and then:
- Fully fund IRAs for you and your spouse.
- Fund your retirement plan (KEOGH, SEP, SIMPLE). Even if you have not set one up, there is time for some types of retirement plans to be created and funded by April 15 or October 15 if you do an extension.
- Unlike prior years, you have a decision on whether you wish to pay in any amounts due with your extension. In past years, this would cost you the regular annual interest rate (currently 3%) plus .5% for each month that you are late. This late penalty is based on being one day late in a month so if you pay on the first day of the month, the IRS could assess the full .5% penalty. However, due to the delays in getting the forms released, the IRS will not charge this penalty. They will charge interest. If your borrowing costs are greater than 3%, you may want to consider taking advantage of this, however, the interest is non-deductible.
- Review your farm income averaging options. Even if this does not save money for you this year, it may save money in the future.
- Make sure to determine if any credits apply to your tax situation.