With Tax Day (April 15th) only two days away, if you haven’t filed your taxes yet you will want to hurry up and get them done. The IRS could not only stick you with a failure to file penalty, but you could owe interest on any unpaid taxes. You can always ask for an extension, but make sure you check with the IRS and/or your accountant to get that done prior to the deadline. Here is the link for the form for an extension, but it must be completed and submitted before Wednesday.
Lines will always be extremely long at the post office, even though they offer extended hours. So the IRS always recommends filing electronically. Most of the computer programs offered allow you to send in your returns this way. A great benefit to this is that you can receive your refund in half the time via direct deposit to your bank account. You can split your return deposit into up to three different accounts. The IRS also will acknowledge receipt of your return so there are no worries that it was lost in the mail.
For those of you who owe money to the government, there are many ways you can submit the payment. You an always send in a check with your return, as long as it’s postmarked by April 15th. You can also charge a payment with your credit or debit card by phone or online. You can file online at any time and request a withdrawal on the 15th. You most likely will be charged a convenience fee to pay by credit card, but you may now be eligible to deduct that fee on next year’s returns.
For those taxpayers that need additional time to pay the government, the IRS now offers an installment plan. If you owe $25,000 or less in taxes, you can apply for a payment plan electronically which will allow you to pay your balance in manageable, monthly installments. You will get charged $105 to set up the agreement or $52 if the payments are automatically deducted from your bank account. Qualified low income households will be charged $43. Taxpayers are required to pay interest plus a late payment penalty on the unpaid taxes for each month or part of a month after the due date that the tax is not paid.
More IRS reminders can be found on their Web site. Just remember to claim all of your deductions. Homeowners can deduct property taxes, mortgage interest, and more. If you own a rental property, you can deduct any payments that went into maintaining the property. Make sure you consult a certified accountant for help.
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