Time’s up. The absolute deadline for filing your 2008 tax return is here
It may have seemed like you had all the time in the world to file your tax return after you got that six-month extension last April. But tomorrow is the final deadline for filing your 2008 return. “This is it, do or die,’’ said Bob Meighan, vice president of Intuit Inc.’s TurboTax division. The only people who can skip the deadline are members of the military serving in combat zones and people affected by recent natural disasters.
If you don’t file, you’ll start racking up penalties with the Internal Revenue Service.
It’s a bigger mistake to skip filing than to file without paying money you owe, said Tom Ochsenschlager of the American Institute of Certified Public Accountants. Sending in your return without payment will save you late filing penalties - which can be up to 25 percent. And to figure out how much you owe, the IRS will file a return for you, without claiming any deductions and credits.
If you owe less than $25,000 and have no outstanding issues with the IRS, you may be able to pay in an installment plan. If you owe more, you’ll have to work out an agreement. You’ll still pay some penalties and interest, but the penalties are lower than those for not filing.
The rules for filing are the same as they are in April. You can mail in a return or you can file electronically. The IRS’s Free File program, which offers basic online tax preparation to people who earned $56,000 or less in 2008, is available until tomorrow through the agency’s website. If you haven’t filed, here are some things to keep in mind:
■Deductions. Don’t take the standard deduction automatically, especially if you own a home or live in a state or city that collects income tax. You can get a quick idea if you are better off itemizing by adding up your mortgage interest, real estate taxes, and the local taxes withheld listed on your W-2. If they come to more than the standard deduction, it’s worth itemizing.
■ Tax credits. You might be able to claim tax credits you missed out on in the past if your income declined in 2008. Credits like the earned income tax credit, child care credit, and the Hope and Lifetime Learning education credits are all income-based, so check to see if you’re eligible.
■ Home buyer tax credit. For homes purchased between April 2008 and Dec. 31, 2008, buyers can claim 10 percent of the purchase price, up to $7,500. This credit must be repaid in 15 equal installments over 15 years.
■ Medical costs. If you spent more than 7.5 percent of your adjusted gross income on medical care, that’s deductible.
■Charitable deductions. You can’t claim donations to charity unless you have receipts. You cannot claim donations to political candidates.
■ Investment losses. If you sold off some of your holdings that went sour, you need to know their basis - the price you paid when you bought the investment - to figure out what you lost.
Eileen AJ Connelly writes for the Associated Press. 
