Income taxes due Tuesday

April 15--Many people will file for an extension for their income tax Tuesday because of hurricane damages, a Victoria accountant said.

Filers are having difficulties figuring out what they owe on their income taxes because if they experienced damages from Hurricane Harvey, they can claim personal or business losses, said Faye Culak, accountant with Roloff Hnatek & Co.

Midnight Tuesday is the deadline to file income taxes. Taxpayers were given two extra days this year to file their taxes. The regular deadline is April 15, which fell on a Sunday. The next day, April 16, is a federal holiday in Washington, D.C., and the federal offices are closed.

"That's why a lot of people are extending," she said. "It's hard to figure out what they owe because of those casualty losses."

Harrison Waldrop & Uherek staff member Jennifer Lowder has also seen many people deal with hurricane losses when it comes to their income tax. The best way to show hurricane losses is to provide the insurance valuation and how much it costs to fix the damages.

"Everything, as it relates to that, is on a case-by-case basis," she said. "There's not really any clear ruling. It's so hard to have one ruling when there are so many different factors."

If people need an extension to file their taxes, they should apply for an extension by Tuesday and pay what they think they owe, Culak said. A good rule of thumb is to pay what was paid the previous year, which will probably be close to what is owed this year.

Paying what was owed the previous year won't keep someone from paying penalties or interest but will help lessen them because the amount will be close to what they owe this year, Culak said.

If someone has rental properties, stock sale gains or other types of assets, and they're not sure how to prepare to file their taxes, they should call a tax professional, Culak said. Most accountants will answer simple questions for free if called.

The Victoria Public Library, 302 N. Main St., also helps individuals file their taxes for free.

Income tax filings aren't much different this year than last, Culak said. Business owners who bought assets in the last quarter of 2017 can take 100 percent bonus depreciation instead of 50 percent, she said.

Most everything else has stayed the same.

Because of the tax cuts put in place in late 2017, most people will see a drop in their tax withholdings this year as tax rates go down, Culak said. Employees should fill out a new W-4 form for their employment to make sure it matches the taxes they owe.

"People are seeing a reduction in their withholding and bigger paychecks because of tax rates going down and the bracket being wider," she said.

The majority of tax returns are filed online, Culak said, which is why most post offices don't stay open late anymore.

For next year, filers should keep all their documents in one place so it's easier to file in 2018, she said. They should also keep their documentation in one place for this year just in case they're audited by the IRS.

Lowder said filers should be patient when waiting on their refunds from the IRS because the agency is handling many last-minute returns.

"Try to keep everything in order," she said. "Next year, get it turned in early. Don't expect it to be done in one day. Ask for help if you need help. Ask for clarification if you need it."

Culak said she enjoys helping people with their taxes.

"I like to solve the puzzles and make it easier for them to make their life easier," she said.

Kathryn Cargo reports on business and agriculture for the Victoria Advocate. She may be reached at [email protected] or 361-580-6328. Follow her on twitter @kathryncargo.

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