Tax procrastination can cost you dearly

If you are really stuck, Tullier suggested, “Think about the consequences or rewards. We’re each motivated differently.”

The rewards might be a significant refund, to save or to spend. The consequences could include penalties and interest levied by the IRS and the stress caused by waiting until the last moment.

Failing to file a return can be quite costly, even more so in most cases than failing to pay taxes owed. The IRS encourages taxpayers who cannot pay their taxes due to file a return and then work out a payment plan.

There is no penalty for failing to file a tax return if you are due a refund, but taxpayers risk losing a refund forever if they wait too long. The IRS, by law, cannot pay refunds claimed more than three years after the tax return’s due date.

The consequences of delay also might include mistakes made while rushing through the task. That means more time and effort spent on tax tasks.

Some of the most common errors are simple ones, the IRS says, but they can cause a return to be rejected or can delay the payment of a refund. They can even tip the tax return from a refund to a balance due and lead to interest and penalties.

Bob Scharin, editor of Practical Tax Strategies journal for tax professionals, said one of the most common mistakes is taking the standard deduction instead of calculating the benefits of itemizing deductions, which might reduce the tax bill more.

“That seems to be the big one that comes around,” said Scharin, whose journal is published by RIA, part of the Thomson Corp.

If you are going to itemize for the first time, “Give yourself enough time,” Scharin said. You will need to review the list of expenses that can be itemized deductions and gather your paperwork to calculate the deduction.

Among the most commonly overlooked expenditures that can mean tax benefits, according to Jackson Hewitt Tax Service, are student loan interest, alimony, personal property taxes, work uniforms, job search expenses, professional dues and a variety of medical costs.

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