April 15 is here!
If you can’t finish your taxes on time, relax. You have options.
If you don’t have your documents in order or haven’t made real progress on your tax return, filing for an extension by April 15 sounds like a good idea.
However, getting more time isn’t as simple as it sounds.
Here are seven things you should know if you can’t finish your taxes on time:
1. You still have to act by April 15. The paperwork is still due on April 15!
2. If you owe money, you have to pay. You’ll need to fill out enough of your tax return to come up with a rough estimate of what you owe. And, send the amount owed to the IRS on time! People filing for a tax extension are still required to pay 90% of what they believe they’ll owe by the April Tax Day deadline.
3. Failing to file is worse than failing to pay. You don’t want a failure-to-file penalty. It is usually 5% of the unpaid taxes for each month or part of a month your return is late, up to 25% of your bill.
4. Your bank may be kinder than Uncle Sam. You may want to pay your taxes with a credit card if you don’t have the cash on hand. The interest and fees may be less.
5. You may not need an extension. File your completed return and pay what you can. Request a short extension of 60 to 120 days to pay. The IRS provides installment payments.
6. If you are owed a refund, you won’t be penalized for not filing. However, you won’t get your refund until you file your return. So, get your money ASAP!
7. If you’re a chronic procrastinator, the IRS won’t issue your refund. If you don’t do your taxes for three years, even if you’re owed a refund, the IRS will keep your money. Again, Yikes!!
Can’t Finish Your Taxes on Time? – There are Solutions!
Source: Tax Filing Extension
More Financial Info: Social Security Benefits