Financial Headline News for Thursday 4/12

Phil's Financial Tip of the Day:

Last-minute tax tips for procrastinators
Good things don't always come to those who wait to file taxes; don't rush and make it worse.

By Dave Carpenter, AP Personal Finance Writer | Associated Press – Wed, Apr 11, 2012 2:08 PM EDT

CHICAGO (AP) -- Getting an extra two days to file taxes beyond the usual April 15 tax filing deadline isn't likely to cure a nation of procrastinators this year.

Tens of millions of us routinely wait until just before the deadline to file returns. More than 30 percent of taxpayers filed the week before Tax Day or later via extensions in 2011, and Internal Revenue Service statistics show the pace is similar this year.

Perhaps working under deadline pressure helps you focus better on the task at hand. But procrastinating may come at a price.

"The amount of work that's going to need to be done at the last minute is no less just because you've waited, and the potential for errors is greater," says Suzanne Shier, a tax strategist at Northern Trust Bank in Chicago. "There's not really an upside to waiting."

So you probably should dive into your tax return without waiting any longer.

Either way, there's little time left to round up records and research the details of any tax code changes from last year.

Here are some points for end-of-season tax filers to keep in mind:

THE PRICE OF RUSHING
It's easy to miss possible deductions that will lower your taxes if you're in a hurry. With the clock ticking down, you might not try as hard to look for them.

Along with simple math errors, late filers also are prone to transposing Social Security numbers or birthdates on their returns. Not only can such snags delay your refund, you might not even be allowed to file your return online if all the numbers of you and your dependents don't match up properly with the records. That might be an issue if the 11:59 p.m. Tuesday deadline is looming and you can't quickly figure out what the problem is and how to fix it.

Don't use estimates because you're short on time. H&R Block sees a lot of instances in which taxpayers guess on their adjusted gross income from the previous filing year as well as their e-file pin number, says Elaine Smith, master tax adviser for the tax preparation giant.

Round-figure estimates don't help your chances of avoiding an audit, either.

To read the entire article by Dave Carpenter, AP Personal Finance Writer | Associated Press:
http://finance.yahoo.com/news/last-minute-tax-tips-procrastinators-180629900.html

Quote of the Day from Dave Ramsey.com:
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