If you're reading this column, with less than two weeks to tax-filing deadline, you're either:
Desperate.
Too cheap to hire professional help.
Worried that you or your preparer messed up.
A very loyal reader.
In any case you need help, and though I'm about to offer some, it might not be what you need. And, just so you know, I fit one into one of the above categories (Hint: It's not the last one).
A tax pro I consulted for this column suggested I simply advise stragglers to file for
. I believe you can pull it off. I've included some reminders for last-minute tax savings.
Tax resources
For other helpful tax forms, resources and information:
Go to It's Only Money's
.
Consult
at
Review It's Only Money's
Free help
Find free tax preparation assistance at one of several CASH Oregon or AARP Foundation Tax-Aide sites.
Search for them at
or through the AARP Foundation's Tax-Aide website at
.
Or dial 2-1-1, and an operator will help you locate a site, though I was on hold for a long time Wednesday before I was able to speak with one.
Outside Oregon or Southwest Washington, call the IRS VITA program at 1-800-906-9887.
Tracking your refund
--Brent Hunsberger
I've also set up an online "
" with links to all sorts of tax resources, forms and tips. And you'll find, accompanying this column, a list of free resources and sites where IRS-certified volunteers will help you prepare or file your form.
With that, let the desperation/tightwadiness/suspicion begin!
savings tax break
What:
Automatically deposit part or all of your refund in an
account.
Where:
Oregon
, line 69.
The lowdown: The big advantage of investing in Oregon's
or
is the tax break. Singles can subtract up to $2,170 (couples $4,345) from their taxable income in 2012. That's essentially a one-time, 8 to 9 percent return on that money, given the state tax rate that most Oregonians fall under. Hard to get that kind of return anywhere else.
But if you don't plunge the windfall back into the plan account, you're not really maximizing your return or your child's college savings. You might even be better off simply investing in another state's plan.
Fortunately, as of last year, you can deposit a portion of your refund directly into a savings plan or MFS account. How much should you deposit? Again, I'd recommend 9 percent of the amount you deducted. The minimum is $25.
It's hard to give up a refund, I know. But this is a good savings tool.
donations correctly
Where:
IRS Form 1040,
, Line 17.
The lowdown:
The IRS has become more of a stickler on how you account for charitable donations, particularly noncash items. So how do you value that worn T-shirt, "antique" end table or creaky Lazy Susan?
Goodwill offers an
. So does
. Between the two, and your own noggin,' you should come up with a good estimate for items you dropped off last year.
Be aware, the IRS says that clothing and household items must be in "good used condition or better" to qualify for a deduction. That's "or better," not "or worse."
Things get more complicated if your deduction totals more than $500, so be sure to read the instructions if it does. Then you need to complete
. Certain household items worth more than $500 might also need a qualified appraisal.
those pesky politicians
Where:
Oregon
, Line 37, credit code 723.
The lowdown:
Still trying to get over last year's election cyclone? Oregon, political animal that it is, gives you a credit for contributions to political parties, candidates and PACs. You can claim up to $50, or $100 if married filing jointly.
In 2010, 100,000 of you took advantage of it, reducing your tax bill by an average $64, Oregon Department of Revenue statistics show.
You cannot make the contribution today for 2012. But if you made one during last year's campaign season, don't forget to claim it. Donations of goods or services don't count. Cash donations to a political action committee or a federal candidate on an Oregon ballot do.
Where:
IRS
, line 32;
, line 17.
The lowdown:
You have until April 15 to contribute to your IRAs for the 2012 tax year. The most you can contribute to all of your traditional and Roth IRAs in one year is $5,000 ($6,000 if 50 or older) or your taxable pay, whichever is lower. The limits go up by $500 for 2013.
You can't deduct contributions to Roths on your tax form. But you can still make them for 2012 through April 15. Contributions to traditional IRAs are deductible, up to the annual limits.
If your spouse doesn't work, but you file a joint return, your spouse can also make IRA contributions up to $5,000 ($6,000 if 50 or older).
What:
Oregon 529 College Savings Network contributions
Where:
Oregon
, Line 18, code 324.
Oregonians also have until April 15 to contribute to Oregon 529 College Savings Network accounts and still subtract the amounts from their 2012 state taxable income.
In fact, with Oregon's 529 plans, you can contribute more than the annual deduction limit and carry the excess forward for up to four years. In other words, a married couple could contribute $21,725 tomorrow and deduct $4,345 each year through 2016, beginning with their 2012 return.
An odd quirk of Oregon law says you must make your 529 contribution before you file your tax return. Last year, a state revenue department spokesperson said you could still make the contribution if you'd already filed, provided you amend the return and resubmit it by April 15.
This year, department spokesman Dennis Thompson says that's not the case. Once you file a particular tax year's return, you can't subtract a college plan contribution for that year.
for retirement
What:
Saver's Credit
Where:
and
, line 50 or
, line 32.
Who's eligible:
Taxpayers with adjusted gross incomes of $57,500 if filing jointly, $28,750 if single and $43,125 if head of households.
If you meet those income limits, don't miss this break, particularly if you contributed to a traditional or Roth IRA or a workplace retirement plan, said Brian Setzler, an accountant with TriLibrium in Portland.
You can claim 10 to 50 percent of the contribution as a credit, up to a maximum of $2,000 for couples and $1,000 for other filers. Eligible workplace plans include 401(k)s, 403(b)s, 457s, SEPs and SIMPLE IRAs. And the credit is good for IRA contributions made through April 15 for the 2012 tax year.
but pay what you owe
Where:
IRS
; Oregon
If you're reading this column and still rooting around for tax breaks, consider filing an extension, says Joseph Anthony, a licensed tax consultant with
in Portland.
"Extensions don't give you more time to pay your taxes ... but they do give you time to figure out what you're doing and get it right," Anthony said.
Just know that you still have to pay any tax you owe by April 15. If you don't, you'll typically pay 1 to 2 percent a month in interest and penalties on any underpayments, he said.
-- Brent Hunsberger welcomes questions about his column or blog.