Taming the taxman
There's still time for some last-minute moves to save on your 2004 tax bill
Savers who are eligible for an IRA have until April 15 to make a deposit that counts as a deduction on 2004 returns. Self-employed people have until April 15, or later, to put money for 2004 into a SEP or Keogh plan.
Don't jump at a new deduction for what you paid last year in state and local sales tax--either the actual total or an estimate based on state-by-state IRS tables. To take that deduction, you must forgo a deduction for state and local income tax, which is likely to be the larger deduction except in the few states that don't impose an income tax.
The sales tax option may be worth a look if you bought a motor vehicle or boat. Tax on those items can be added to the deductible amount in the tables.
People at ease doing their return online may want to check Free File, a joint effort by commercial preparers and the IRS. The IRS ( www.irs.gov ) will direct you to sites offering free federal tax preparation and filing, often with few or no income or other restrictions. But you may be pestered to pay for doing your state return and to buy extra help and services.
Need more time? The IRS will give you until August 15 if you follow the procedure on Form 4868, even an 11th-hour delay by phone. An official extension avoids a penalty for filing late but not interest or possible penalty on tax unpaid by April 15.
There's no penalty for filing late with no extension if you get a refund, but why wait? Nearly 8 of 10 filers get cash back, and so far this year 69 percent of early filers have opted to speed their refunds by having the IRS deposit the money directly into their bank accounts.
The average refund so far: $2,294, up 6.6 percent from a year ago.
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