![]() Leading tax software providers make their online products available for free. IRS Free File is available to any person or family with an adjusted gross income (AGI) of $73,000 or less in 2021. The fastest way to receive a refund is to file electronically and use direct deposit. The IRS encourages taxpayers to file electronically because tax software does the calculations, flags common errors and reduces tax return errors by prompting taxpayers for missing information. The agency wants last-minute filers to know tax help is available to file a tax return, request an extension or make a payment, 24 hours a day on IRS.gov. ![]() The tax agency also charges interest on the penalty.WASHINGTON - The Internal Revenue Service is reminding taxpayers the deadline to file and pay tax owed for most individual income tax returns is Monday, April 18. It caps the penalty at 25% of your unpaid taxes. The IRS charges 5% of the unpaid taxes for each month that a tax return is late - or 10 times more than the underpayment penalty. People who fail to file their return by the extended tax deadline will face harsher penalties. ![]() However, the deadlines for contributing to IRA and 401(k) accounts have passed for people filing their 2021 tax returns via an extension. That can help self-employed workers or small business employees both save money and lower their taxable income for the 2021 tax year. Under IRS rules, people with SEP IRA accounts can contribute to their accounts until the due date for filing their federal income tax return for the year, which means people who asked for an extension have until October 17 to sock away some money. These are typically used by self-employed individuals, but are also common among small business owners. That depends whether you have a SEP IRA account, which stands for a "simplified employee pension" (or SEP) individual retirement account. Can I still contribute to my retirement fund? In this case, the taxpayer will face $30 in penalties for the non-payment - $5, or 0.5% of the $1,000, per month during the six months between April 18 and the October 17 extended filing deadline.īut the IRS also charges interest on penalties - and the tax agency just raised that rate to 6% on October 1 from 5% previously. Take a taxpayer who failed to pay $1,000 in taxes that they owed by the April 18 deadline. The penalty is capped at 25% of your unpaid taxes. The IRS says the penalty for these situations is 0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid. They also recommend sending your return electronically, since the IRS has struggled mightily with processing paper returns during the pandemic. Yet while that gives taxpayers a little more breathing room, experts have recommended filing as soon as possible in order to avoid last-minute pitfalls. ![]() This year, the tax extension deadline for filing your 2021 return is October 17, rather than the typical date of October 15, because the 15th falls on a Saturday. While most Americans file their returns before the traditional April 15 deadline, people who needed more time were able to automatically receive another six months from the tax agency in order to get their files in order. If you are among the roughly 19 million people who asked the IRS for another six months to file their taxes in 2022, time is almost up.Īlmost 1 in 8 taxpayers asked for an extension to file their taxes this year, according to data from the IRS, which expects a total of about 160 million tax returns to be filed in 2022. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |