LIHU‘E — One in five taxpayers doesn’t file taxes until the final week before the April 15 deadline, according to the Internal Revenue Service. Kaua‘i tax professionals are busy helping residents submit their returns before Wednesday and it may be
LIHU‘E — One in five taxpayers doesn’t file taxes until the final week before the April 15 deadline, according to the Internal Revenue Service.
Kaua‘i tax professionals are busy helping residents submit their returns before Wednesday and it may be a challenge to make an appointment now as some have been booked for weeks.
For those who still need to file, here are some tips and reminders from the IRS and Hawai‘i State Department of Taxation:
• File your taxes on time to avoid penalties.
Federal taxes should be postmarked on or before April 15 and state taxes on or before April 20.
Even if the full amount owed cannot be paid immediately, it is advised to pay as much as possible to minimize interest on outstanding taxes.
Federal and state paper tax forms can be obtained at any of the public library branches on Kaua‘i.
In order to accommodate customers submitting tax documents, the Lihu‘e post office will postmark mail with the crucial April 15 date as long as it is dropped off by midnight.
•Those with Internet access might try e-filing.
Filing electronically results in quicker processing of tax refunds and also increases accuracy (according to the IRS, e-filing has a 1 percent error rate, while paper filing averages a 20 percent error rate).
The IRS-sponsored Free File program (www.irs.gov/efile/article/0,,id=118986,00.html) is available to taxpayers with a 2008 adjusted gross income of $56,000 or less.
Taxpayers with a higher income can also file electronically for a modest fee using Web sites such as turbotax.com or hrblock.com.
• For those unable to file on time, Ernest Johnston, of Johnston Financial Services in Lihu‘e, suggests filing for an extension, which gives you until Oct. 15 to complete your federal tax return — however, it does not give an extension for paying tax liability and it must still be filed by Wednesday.
An extension can give you time to find lost statements, request replacements or consult with a tax professional.
He also notes that you can submit a tax return on time and amend it up to three years later.
For more information on federal taxes, visit www.irs.gov or call 1-800-829-1040.
For information on state taxes, visit www.state.hi.us/tax or call 1-800-222-3229.
