Tax Tip Tuesday: Five Answers to Your Most Common Questions
The individual tax deadline of April 15 is rapidly approaching. Do you have your taxes in order? Here are five common questions that individuals frequently inquire about throughout tax season.
If I do not file on time, what happens? There is no penalty for filing a tax return after the deadline if receiving a refund. However, you will encounter penalties and interest if you owe taxes and did not request an extension or file on time. To prevent this problem from piling up quickly, file as soon as possible. The failure-to-file penalty is 5 percent of the unpaid tax added for each month that a return is late.
Can I file for an extension? If you are not on track to complete your tax return by April 15, you can file an extension until October 15. Be mindful that it is only an extension of time to file. It is not an extension of time to pay the owed taxes. To avoid penalties and interest, you will still need to file by April 15. Therefore, a preliminary review of your tax documents is necessary to determine whether you need to make a payment at the extension deadline.
What are my payment options? You can mail a check, pay directly from a bank account with IRS direct pay, use a debit or credit card for a fee, or apply online for an IRS payment plan. Regardless of your payment method, finalize tax payment arrangements by April 15.
When will I receive my refund? The IRS processes 90 percent of refunds for e-filed returns in 21 days or less. Paper-filed returns take longer. To determine the status of your refund, you can utilize the Where’s My Refund? feature on the IRS website.
I forgot a tax document. Now what? Determine how the new information impacts your filed return. For example, there is nothing more to do if you claim the standard deduction and then receive a mortgage interest statement that does not bring your expenses above the deduction threshold. If you receive a Form 1099 with additional income, you must amend your tax return.
If you have questions regarding your taxes, we can help. Contact us today at firstname.lastname@example.org or 321-757-2020.