Tax Tips for Individuals

Oops! You’ve discovered an error after your tax return has been filed. What should you do? You may need to amend your return.

If you can’t meet the April 15 deadline to file your tax return, you can get an automatic six month extension of time to file from the IRS. The extension will give you extra time to get the paperwork in to the IRS, but it does not extend the time you have to pay any tax due. You will owe interest and need to pay a penalty on any amounts not paid by the April deadline.

Be aware there are specific tax reporting guidelines for vehicle donations and associated documentation.

When preparing to file your federal tax return, don’t forget your contributions to charitable organizations. Your donations can add up to a nice tax deduction if you itemize on IRS Form 1040, Schedule A.

Taxpayers who refinanced their homes may be eligible to deduct some costs associated with their loans. 


You may be able to take the Credit for the Elderly or the Disabled if you were age 65 or older at the end of last year, or if you are retired on permanent and total disability.

Millions of Americans forgo critical tax relief each year by failing to claim the Earned Income Tax Credit (EITC), a federal tax credit for individuals who work but do not earn high incomes. Taxpayers who qualify and claim the credit could pay less federal tax, pay no tax or even get a tax refund.

If you sold your main home, you may be able to exclude up to $250,000 of gain ($500,000 for married taxpayers filing jointly) from your federal tax return.

With more and more United States citizens earning money from foreign sources, taxpayers must report all such income on their tax return, unless it is exempt under federal law. U.S. citizens are taxed on their worldwide income.

Did you know that you may be able to deduct certain taxes on your federal income tax return up to $10,000 if you file Form 1040 and itemize deductions on Schedule A? Deductions decrease the amount of income subject to taxation.

If you gave any one person gifts valued at more than $15,000, it is necessary to report the total gift to the Internal Revenue Service. You may even have to pay tax on the gift.

Newlyweds and the recently divorced should make sure that names on their tax returns match those registered with the Social Security Administration (SSA). A mismatch between a name on the tax return and a Social Security number (SSN) could unexpectedly increase a tax bill or reduce the size of any refund.

If you itemize your taxes, you may choose to deduct state and local sales taxes instead of state and local income taxes.

If you find you need more time to finish your return, you can get a six month extension of time to file using Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. And if you have trouble paying your tax bill, the IRS has several payment options available.

Are you expecting a tax refund from the Internal Revenue Service this year? If you file a complete and accurate paper tax return, your refund should be issued in about six to eight weeks from the date IRS receives your return. If you file your return electronically, your refund should be issued in about half the time it would take if you filed a paper return; even faster when you choose direct deposit.

Have you tried everything to resolve a tax problem with the IRS but are still experiencing delays? Are you facing what you consider to be an economic burden or hardship due to IRS collection or other actions? If so, you can seek the assistance of the Taxpayer Advocate Service.

Do you work at a hair salon, barber shop, casino, golf course, hotel or restaurant or drive a taxicab? The tip income you receive as an employee from those services is taxable income. 


Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. The IRS says when you sell a capital asset, such as stocks, the difference between the amount you sell it for and your basis, which is usually what you paid for it, is a capital gain or a capital loss. While you must report all capital gains, you may deduct only your capital losses on investment property, not personal property.

You can contribute to either a traditional or Roth IRA until the April 15 due date for filing your tax return for last year, not including extensions.

A New York State 529 Plan Account is a savings account created as an incentive to help parents and students save for education expenses in a tax favored way.

Whether to itemize deductions on your tax return depends on how much you spent on certain expenses. Money paid for medical care, mortgage interest, taxes, and charitable contributions can reduce your taxes. If the total amount spent on those categories is more than the standard deduction, you can usually benefit by itemizing.

If you are an educator, you may be able to deduct up to $250 of expenses you paid for purchases of books and classroom supplies, even if you don’t itemize your deductions. These out-of-pocket expenses may lower your tax bill.