The deadline for filing taxes was Tuesday, April 18. If you still haven’t filed your taxes yet, there are a few things you can do to minimize penalties and get the job done right. Remember – it’s always better to file your taxes late than not file at all.
File your taxes as soon as possible
Unless you’re owed a refund, the longer you wait to file your taxes, the more penalties and interest you’ll have to pay. There is no penalty for failure to file if you are due a refund. However, you cannot obtain a refund without filing a tax return. If you wait too long to file, there’s always a risk losing the refund altogether.
If you owe money, the IRS charges a penalty of 5% per month on the unpaid tax amount, up to a maximum of 25%. So, it’s best to file your taxes as soon as possible to avoid these penalties.
Gather all your tax documents
Before you can file your taxes, you’ll need to gather all the necessary documents, such as W-2s, 1099s, and other income statements. You’ll also need to have your Social Security number and any other tax-related information handy. If you’re missing any documents, request them immediately from your employer or the IRS.
Consider hiring a tax professional
If you’re not comfortable filing your taxes on your own, or if you have a complicated tax situation, you may want to consider hiring a tax professional. A tax professional can help you navigate the tax code and ensure that you’re taking advantage of all the deductions and credits you’re eligible for.
File for an extension
If you’re unable to file your taxes by the deadline, you can file for an extension. Filing for an extension will give you an extra six months to file your taxes. However, it’s important to note that an extension only gives you more time to file your taxes, not to pay any taxes owed. You’ll still need to estimate your tax liability and pay any taxes owed by the May 18 deadline to avoid penalties and interest.
Pay any taxes owed
If you owe taxes, it’s important to pay them as soon as possible to avoid penalties and interest. You can make a payment online, by phone, or by mail. The IRS also offers payment plans for those who are unable to pay their taxes in full.
IRS Payment Plans
Your specific tax situation will determine the types of payment options that are available. Payment options include short-term payment plans (paying in 180 days or less) or long-term monthly installment agreements. The full debt, including taxes, penalties and interest, must be repaid within 72 months (six years). More information can be found here.