Transcripts

Kevin McCormally's Tax Tips-Avoiding Midnight Hour Mistakes

SUSIE GHARIB: If you've waited until the last minute to do your Federal income tax return, do not fear. We're here to help. You have until midnight tomorrow night to post your return. As we continue our series, "Tax Tips," Kevin McCormally of Kiplinger's Personal Finance says don't let last minute panic trip up your return.

KEVIN MCCORMALLY, EDITORIAL DIRECTOR, KIPLINGER'S PERSONAL FINANCE: This is a dangerous time for taxpayers, the last few hours before returns are due at midnight tomorrow. But don't let the rush to finish things up cause you to throw away money by overlooking legitimate tax breaks. If you have kids in college in the seven states that make up the Midwest disaster zone, for example, see if you qualify for double hope and lifetime learning college credits. That could save you thousands of dollars. If you claim the standard deduction, you may be able to boost your write-off to account for casualty losses you suffered in 2008 or for real estate taxes you paid. Those are brand new tax savers this year. If you got a 1099-Q form, don't assume you have to report the amount shown as income. Sure, that's the rule with most 1099s, but the 1099-Q is different. It reports payouts from state college saving plans and Coverdale accounts and that's almost always tax-free. Take the time to see if you qualify for the recovery rebate credit. Sure, most of us got all we're going to get out of that tax break with our rebate checks last summer, but millions of taxpayers deserve more. See if you're one of the lucky ones. Finally, if you can't get your return done by tomorrow, don't panic. It's easy to file a form 4868 to push the deadline back to October 15. And if you're sure you'll get a refund when you file and your return is pretty straightforward, you don't even have to file the 4868. There's no penalty for filing late. Now, if you owe money or if you're making special elections on your return, you do need to file your return or that 4868 by midnight Wednesday. Otherwise, breathe easy. I'm Kevin McCormally.