Red flags for last-minute tax filers - KTEN.com - No One Gets You Closer

Red flags for last-minute tax filers

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DURANT -- The deadline to file your income taxes is Tuesday at midnight.

Mary Wood is a manager at Jackson Hewitt in Durant. She's helping last-minute tax filers, like David Hathcock.

"I am hoping to get back some money but we'll just have to wait and see," he said. "Fingers crossed."

This year, Wood says the IRS is cracking down on anyone taking advantage of earned income credits which allows taxpayers to get $3,000-$5,000 back by claiming dependents.

"In the past, people have actually claimed their pets so that is why a social security card is required to claim someone as a dependent," Wood said. "They want to make sure you are actually supporting the individual that you claim you are."

Dailyfinance.com offers tips to avoid an IRS audit.

Tax preparers are also getting looped into the launch of the Affordable Care Act by helping people apply for insurance through Healthcare.gov.

This time next year, anyone without health coverage who isn't exempt will have to pay 1% of your income or $95, whichever is more.

"Next year when you file, there will be a penalty and it's a tax," Wood said.

Jackson Hewitt is also warning filers about tax scams. Today, the IRS also issued another consumer warning to about sophisticated and aggressive phone scams targeting taxpayers.

Remember: The IRS will never call or email you. Communication will always be by mail.

As for those who can't file by Tuesday's deadline, Wood says an extension won't buy you more time to pay up.

"The extension is just for the forms only," she said. "If you're going to owe, in order to avoid a penalty you would need to send in 90% of what you're going to owe."

To expedite the filing process, Wood reminds taxpayers to bring all W2's, 1099's and social security cards for yourself and anyone you are claiming as dependents.

The deadline to file your taxes and to enroll through the health insurance marketplace is Tuesday, April 15 at midnight.