By Claudia BuckRISMEDIA, April 10, 2008-(MCT)-April may be the cruelest month, but here are some tips to avoid financial foolery:
1. Don’t forget the April 15 tax deadline; file an extension if you can’t meet it.
Even if you don’t have the money to pay state or federal taxes, you’ll get hit with penalties if you don’t meet certain obligations. With the IRS, you can file for an Oct. 15 extension online at www.irs.gov or call (800) 829-1040. Check with your state comptroller for state information.
2. Don’t get tripped up by those common tax-filing errors.
Three big ones are: Overstating or understating estimated tax payments; using figures that don’t match W-2 forms; and missing out on refunds or credits. One of the most significant-the federal earned income tax credit-provides up to $4,700 for working families, “but at least one of every four eligible taxpayers leaves that money on the table,” says California Controller John Chiang.