ALL THE MONEY NEWS YOU NEED TO KNOW | | | |
Just like that, tax season is over. Almost. |
The deadline is Tuesday, April 18. While most of us have already filed our returns and kissed tax season goodbye, there are still some taxpayers waiting until the last minute to file. |
Thanks to the COVID pandemic, tax season deadlines were upended. In 2020 and 2021, the deadline was extended to give taxpayers more time. However, since last year, the deadline returned to its traditional April date. |
"With the last two years of mixed up deadlines and all the rest of it, there's a lot of people that have really truly waited until the last minute to file," said Kathy Pickering, chief tax officer with H&R Block. |
The first thing you should know if you haven't filed your tax return yet? Get started. Like, right now. |
What if I'm not ready to file taxes? |
You can request an extension from the Internal Revenue Service, which gives you until October 16 to file your return. Look for Form 4868, available on most sites where you can file returns electronically. |
Residents of some states including Arkansas, Alabama and New York may be eligible for an extension if they lived near a disaster area. |
One important note if you file for a tax extension: You still have to pay any taxes you owe, said Pickering. |
What happens if you file your taxes late? |
Big penalties. According to the IRS, the "Failure to File" penalty is 5% of unpaid taxes for each month you don't pay, but it won't exceed 25%. And that doesn't count any additional state penalties. |
What if you can't pay taxes owed? |
The penalty works similar to the "Failure to File" penalty, only it's a much lower 0.05% of unpaid taxes for each month. |
Pickering advises taxpayers who are worried they can't pay to file anyway and consider a payment plan to cover the unpaid taxes. |
What about next tax season? |
Wait, what? Yes, it's never too early to look ahead. |
Pickering said taxpayers can perform a "paycheck check up" to make sure they're withholding the right amount for taxes. She also advises taxpayers get the most out of pre-tax contributions like retirement plans or health savings accounts, and talk to an advisor if a big life change could mean a shift in your taxes. | | | | Taxes are due by April 18 unless you file for an extension or live in parts of Mississippi, Georgia and other states that had recent natural disasters | | | | The final day to file taxes is April 18 for most people. But the IRS extended the deadline for some states that experienced recent storms. | | | | If you'll miss the April 18 tax deadline, file an extension for six months more. Just remember, you still have to pay by April 18 to avoid penalties. | | | | What is a 401(k)? Is it the same thing as an IRA? Both are tax-advantaged retirement investment accounts but they have key differences. | | | | The April 18 tax deadline is near, but there's still time for contributions that can get you a tax deduction and save you money. Here's what to know. | | | | Here's what you should know about regressive tax and progressive tax, what they are, how they work and the difference between the two. | | | | Working from home is convenient but costly for W-2 workers. Only self-employed people can take the home office deductions. Here's how it works. | | | | The maximum tax credit per qualifying child is $2,000 for children five and under – or $3,000 for children six through 17 years old. | | | | Sure, you can file an extension. But that does not grant you an extension to pay any outstanding tax bill you owe. | | | | Don't let another year go by without taking advantage of these incredible benefits. | | | | | | | Sign up for the news you want | Exclusive newsletters are part of your subscription, don't miss out! We're always working to add benefits for subscribers like you. | | | | | | |
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