While the four-month Tax Day extension was a welcome relief for many Americans, the new July 15th deadline is right around the corner. If you’ve already filed your 2019 taxes with the IRS (making the most of tax deductions available to you), CONGRATULATIONS, but don’t stop reading just yet. We’ve outlined several tax tips below that you and your clients may find very useful.
When you’re finished reading, download the accompanying client communication kit. This kit features helpful tax tips for July 15 and beyond, and will help you stay connected to your clients by sharing your expertise.
1. You Can Extend the Extension
If you haven’t filed your federal taxes yet, and you feel July 15 is still too soon, you can file for a personal extension that will push your due date to October 15, 2020. Keep in mind that only applies to federal taxes. State tax deadlines are determined by local governments and may differ from federal policies.
2. Early Birds Get Their Stimulus Checks First
While extending your extension is an option, it may be in your best interest to file your taxes as soon as possible. The government is currently discussing a second round of Economic Impact Payments, and like the first round, taxpayers who recently filed their taxes and confirmed their banking information and addresses will be the first to receive them.
3. Focus on the Facts
There are a lot of rumors going around about Tax Day, ranging from an additional September 15th extension to local governments issuing unexpected property tax increases. While reading the news can be helpful, always double-check the websites of the IRS and other government agencies in your state for the most accurate and up-to-date information about federal and state tax policies.
4. Give Yourself a Break (or 11)
As a real estate agent, there are several tax deductions that shouldn’t be overlooked. From commissions paid to home office expenses, get familiar with the activities that could reduce the amount you owe to the IRS. Every penny saved is a penny earned, especially during a shift.
If your clients have been saving time by taking the standard deduction each year, they may be paying more than they need to. From mortgage interest to energy credits, there are several ways they can reduce your taxes through itemized deductions. This Intuit TurboTax article outlines nine of them.
5. Know Your Tools
The IRS website is loaded with tools to help you prepare your taxes, most notably, the Interactive Tax Assistant (ITA). With the ITA, you simply type in the topic you’d like to learn more about and you’ll be redirected to any helpful articles or calculators within the IRS website. And, if you’re using tax preparation software to file this year, be sure to familiarize yourself with the tools they have to offer.
6. Trust the Professionals
A certified public accountant (CPA) is your best source for any specific tax questions. And, let your clients know that you are their go-to resource for any real estate-related questions or concerns that may come to mind.
Share your expertise with your clients! Download our latest client communication kit focused entirely on Tax Day.Download the Kit