Work it Wednesday: Five things to do before April 15th

GOLDEN VALLEY, Minn. -- Tax time is approaching, and taxpayer's rights advocate Dan Pilla of the Tax Freedom Institute says there's still time to take advantage of tax laws that can help your bottom line, and also keep you out of trouble.

First and foremost, Pilla says you can still contribute to a new or existing IRA or 401(k).  If you make that contribution before April 15th, you can take the deduction for 2009 and lower your bill.

If you have made charitable donations over the year make sure you have proof for contributions of $250 or more.  It's called a "contemporary acknowledgment" and you need to have it in hand by April 15th.  That statement must include the amount you gave, the year of the gift, whether you received anything of marketable value, and if so, the value of the item received.

For instance, if you attented a charitable dinner at $100 a ticket, you can only deduct part of the amount, because the dinner itself has value.

People who want to make contributions to relief efforts in Haiti can take advantage of a special provision this year.  It allows you to claim a 2009 deduction for a contribution earmarked for Haiti earthquake relief up until March 1st.

Pilla advises you to audit proof your return.  IRS form 8275 is a Disclosure Statement that allows you to explain deductions and attach affidavits that should answer any questions the IRS might have about your deductions.

If April 15th is approaching faster than you can complete your tax return, Pilla says get IRS form 4868, an Application for Automatic Extension of Time for Filing Tax Return.  As the name implies, it will give you an automatic four month extension, until August 15th.

If you need a second extension, IRS form 2688 , Application for Additional Extension of Time to File Tax Return, will get you an additional two months, until October 15th.

IMPORTANT: You must still pay taxes owed by April 15th, even if you have filed for an extension of time to file.

If you have a financial hardship, the IRS does grant exceptions to the April 15th rule.  For that, you need to use IRS form 1127, Application for Extension of Time to Pay Taxes.  This is not an automatic extension.

IRS forms are available at www.irs.gov.

Dan Pilla and the Tax Freedom Institute are hosting a free seminar Thursday, March 4th from 7pm to 9pm at the Days Inn Hotel and Conference Center, 3030 Southlawn Dr., Maplewood.

Pilla will discuss tax-saving strategies, and solutions to common tax problems. 

Register by calling 1-800-346-6829.  The seminar is free but space is limited.

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