Not sure if you’ll be able to file a return by Monday? You can seek a six-month delay, but you must still pay the IRS what you owe.
Congratulations for officially waiting until the last minute if you’re only starting to worry about your taxes this weekend. This Monday, April 18, is the deadline to file a return for the year 2021, often known as Tax Day.
The bad news is this. The good news is that if you’re one of the estimated 15 million taxpayers who aren’t quite ready to fold their accordion folders and call it a year, all hope is not lost. Here are some things to keep in mind.
Is an extension required by Monday?
The short answer is yes if you aren’t ready to file. There are, however, a few exceptions. The Internal Revenue Service (IRS) has already given an automatic extension to taxpayers who live in disaster-affected areas in Arkansas, Colorado, Kentucky, and Tennessee this year.
Residents in those locations are exempt from filing until May 16, and they are also exempt from making tax payments until then. People in other sections of Puerto Rico will have even more time—until June 16. More information is available on the IRS website’s dedicated “around the country” page.
I’ll get an extension if that’s okay with you. Where do I go from here?
It’s actually quite simple to do so with the IRS. Through its Free File program, you can request an extension from a list of partner companies. You can also request an extension if you currently use a tax-preparation service, such as TurboTax. It takes only a few minutes to complete.
I don’t have to pay taxes until October now?
Wrong. If you owe money on your taxes this year, you must pay by Monday to avoid being penalized. The IRS recommends estimating your debt and then making a payment through your tax account.
Last year, I received no stimulus check. Do I have permission to do so?
Perhaps, but only if you’re certain you’re eligible. Sign in to your online tax account and go to the “payments” section to get started. This will show you all of the IRS payments you’ve received, including stimulus checks.
You can claim it as a Recovery Rebate Credit on your tax return if you see a check there that you never got—or only received a portion of. Separately, the IRS should have notified you of your qualification through a letter.
You must, however, ensure that you calculate the exact quantity, which is the most crucial element. If you make a mistake, the IRS will have to correct it, which may cause your refund to be delayed.
Take it from the millions of taxpayers who are still waiting for refunds from the years 2021 and 2020. You definitely don’t want to end up in Manual Review Hell.
Because the IRS recognizes that the process of receiving stimulus payments and rebate credits is significantly more convoluted than it should be, it recently updated its FAQ website on the subject. If you want to claim the credit, you need to read it first.
All of this is extremely overwhelming can I just forget about filing taxes?
If you’re feeling that way this year, you’re not alone, especially considering the processing backlogs that have caused so many refunds to be delayed. If you throw up the towel and resign, though, you’ll be in for a world of pain and grief in the shape of penalties and interest, including a failure-to-file penalty.
More:
Updates on American Finances: Tax Refunds, Social Security Payments…
The Goal of the Stimulus Check Is to Fight Inflation in the United States
Pennsylvanians React to Gov. Wolf’s Plan for a Stimulus Check
If you’re owed a refund, you won’t face a failure-to-file penalty, but if you wait too long, you could lose that return forever, according to the IRS. In the end, it’s simply best to file and be done with it.
