Tax Deadline Approaches: CPA Offers Insights on Extensions and New Montana Tax Guidelines

As the tax deadline nears, Bozeman CPA Jacki McGuire has provided essential guidance for local taxpayers facing last-minute filing challenges. With the deadline set for Tuesday, she advises those who may miss the deadline to consider filing an extension using IRS Form 4868. This strategic move can mitigate penalties associated with unpaid taxes by allowing individuals to estimate their dues and make an extension payment. It’s crucial, however, to acknowledge that penalties will still accrue on any unpaid taxes after April 15. McGuire's recommendation to avoid credit card payments due to associated fees highlights a practical approach to managing tax liabilities. In addition to addressing extension filings, McGuire discusses notable changes in the Montana tax return format, streamlining two-column returns to a more simplified single-column format. This change aims to alleviate the so-called marriage penalty and reduce complexity for taxpayers. Most taxpayers may welcome this simplification, especially with the reduction in income tax rates. Furthermore, in a nuanced point for families, McGuire reminds parents that costs associated with summer day camps qualify as child care expenses, a detail often overlooked during tax preparation. This can provide significant savings for parents during tax season. She also clears up common misunderstandings around reporting gambling income and losses, noting that while all gambling income must be declared upfront, losses fall under itemized deductions. Finally, the recommendation to file electronically is timely—highlighting the importance of efficient filing methods to minimize errors and ensure compliance. In summary, McGuire’s advice not only helps to navigate the complexities of tax filing but also encourages proactive financial planning among taxpayers. As this article reflects, timely and informed tax strategies can greatly benefit individuals, especially as tax laws and systems evolve.