Many people may lose out on their tax refund simply because they did not file a federal income tax return. I hope you aren’t one of them.
you were granted an extension to file your 2021 tax return, now’s the time to send that return to the IRS. The due date for extended returns is October 17. For those who received an extension, October 17 is also the last date for (1) self-employed people to contribute to a solo 401(k) or a simplified employee pension (SEP) plan for 2021, or (2) withdrawing excess IRA contributions made in 2021. Here are four more reminders to ponder below!
1. Does the tax extension deadline apply to me?
- If you filed IRS Form 4868 on or before the tax deadline, the tax extension deadline gives you until October 17, 2022, to file your tax return.
- If you didn’t file IRS Form 4868 on or before the April 18 deadline, and you didn’t file your tax return either, your taxes are likely going to be very, very late in the eyes of the IRS. The IRS can assess interest on your outstanding tax bill, as well as failure-to-file penalties and failure-to-pay penalties.
- Some people automatically get more time to file. This often includes military personnel or persons affected by a qualifying disaster.
» MORE: How to make an IRS payment
2. What happens if I miss the October tax extension deadline?
- You’ll owe more interest. A tax extension gives you more time to file your return, not more time to pay.
- You may owe a higher late-payment penalty. The IRS’s late-payment penalty normally is 0.5% per month of the outstanding tax not paid by the filing deadline. The maximum penalty is 25%. You’re supposed to pay at least 90% of your tax liability by the regular filing deadline.
- You may owe a late-filing penalty. The IRS can also sock you with a late-filing penalty of 5% of the amount due for every month or partial month your tax return is late. The maximum penalty is 25% of the amount due.
3. How can I get an extension for my next tax return?
If you already know you’ll need more time to do your 2022 taxes, be sure to file IRS Form 4868 on or before next year’s tax-filing deadline.
- Again, getting an extension does not give you more time to pay the taxes you owe — it only gives you more time to file your tax return. When you file for an extension, you can estimate what you owe and send some or all of that with your extension request. If the estimated payment ends up being less than what you actually owe, you’ll likely need to pay interest on the difference. The longer that’s outstanding, the more interest you may rack up.
- Don’t neglect to file just because you can’t pay the bill. The IRS offers installment plans if you can’t pay your taxes.
4. Where to get tax help from:
No matter where you are if you have wifi, you have a tax professional!
KP Tax has been serving tax filers and their families since 2010. We would love to handle all of your tax filing needs. Not only do we have affordable rates, but our service is outstanding too! Contact us from the comfort of your home or we can come to you! Here’s the number (803) 915 – 3210 You can also email us at firstname.lastname@example.org.