Tax tips for last-minute filers

By Eva Rosenberg, MarketWatch

LOS ANGELES (MarketWatch) -- Just a few hundred minutes left until the tax witching hour at midnight on April 15. Remember the days before electronic filing? Radio stations would broadcast from U.S. Postal Offices that were open until midnight, and turned the night into party time.

But if you haven't filed yet, you may not be in a party mood.

What should you do if you haven't filed? First, put your tax return on extension. We've already talked about how to buy more time, and what to do with the time once you get it. See TaxWatch on filing a tax extension.

This week, you'll get some tips to help you finish up your tax return and get it filed as soon after April 15 as possible -- with all the of the tax deductions and benefits you've got coming to you.

Inconvenience fees

The IRS says you may deduct those pesky convenience fees you paid last year when you filed your 2008 tax return. Use Schedule A, along with your miscellaneous itemized deductions on line 23. Of course, if you don't itemize, you won't get the deduction.

Travel and meal expenses

You still have time to salvage your business travel deductions for last year. If you didn't keep detailed records of your expenses, use the government per diem rates. Typical rates in the big cities will run around $200 per night, even if you managed to snag Priceline rates of $59. All you have to do is prove which nights you spent in which cities. The per diem rates change seasonally, so the dates are important.

For folks who travel 50 days a year, that can mean an extra $7,000 or more.

Two things to remember: When it comes to travel and travel meals, you must make a choice between per diems or actual for the whole year. You may not pick and choose. And, the meals cost must be separately reported -- only 50% of the expense is deductible.

You will find the per diem rates in TaxMama's quick look-ups resource. See the TaxMama site.

Home-buyer tax credits

This benefit expires on April 30. If you're planning to take advantage of it, run out and find a house to buy immediately. As long as you open escrow or initiate the paperwork to buy the home by April 15, you have until June 30 to get financing and finalize the purchase.

Three things to remember: 1) Put your 2009 tax return on extension if you're planning to make this 2010 purchase. You can include the credit on your 2009 return. 2) If you're using the house for business, deduct the amount of the tax credit you receive from the total purchase price before you depreciate the business portion of your home. 3) Include all the proofs of purchase and residency or prior ownership with your tax return in the first place. You'll get your refund faster if IRS doesn't have to ask for paperwork.

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More tax advice, IRS news and filing help
• MarketWatch 2010 Taxes Guide
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• Higher tax rates will cost you in 2011
• The tax benefits of refinancing your mortgage
• Can you deduct online-gambling losses?
• Unemployed? Here are 4 costly tax-filing errors
• Defaulted loans? Cancelled debt? A Tax Guide
• Itemizing vs. the standard deduction
• Avoiding IRS audit triggers and red flags
• Overpaid taxes? How to get your money back
• How to find the right tax professional
• Need free tax help? Here it is
• The best online tax-filing service for 2010
• Avoid identity theft -- file your tax return smartly

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Californians should start the purchase process by April 30 to qualify for the IRS credit, but be sure NOT to finalize the purchase until after May 1 to qualify for one of the California tax credits -- the new home purchase or the first time home-buyer credit. See TaxWatch on the pitfalls in claiming home-buyer tax credit.

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