Things to Know About Tax Day

Tax day really isn’t as bad as it sounds. Yes, it’s true that on this day you have to scramble in a mad panic to get that form in on time, but apart from that it’s not as terrible as it seems. Here are some of the essential things you should know about tax day.TaxDay

Most People Get Refunds

78% of the people who submit tax returns get a refund. The average refund is almost $3,000. The chances are you will qualify for one at some point, so tax day is actually the day you get money, rather than the day you give it away.

Getting Audited is Rare

The IRS has its budget cut every year. This gives it less power when it comes to conducting audits. The reality is they don’t really care about the average bum. They want to tackle the people who have more to give, because the motivation is higher to fiddle the figures.

Less than 1% of submitted tax returns are audited every year.

The April Deadline isn’t Important for All

Late filing fees are calculated based on the amount you owe. If you don’t owe anything, you won’t get any late fees. Of course, you should still submit on time, but it is nothing special if you don’t. Furthermore, if you tell them in advance they’ll usually give you a grace period.

The Obama Administration Made Things Complicated

New laws on health insurance made this year one of the first years where you had to consider your health on your tax return. The Obama Administration fumbled when it came to this, and it has left a lot of people confused.

Avoid this by checking out you tax situation well in advance of deadline day.

Always Be Prepared

The main message to avoid a headache on tax day is not leave it until tax day in the first place. Submit well in advance and don’t leave it until the last minute.

Image credit: LendingMemo