There’s another important date coming up if you filed a tax extension back in April. The October 16th tax extension deadline is a couple weeks away. A tax extension allows you extra time to organize your information and file your taxes. Here are some tips to stay on the IRS’ good side if you find yourself scrambling before another deadline:
Know the Consequences
Missing the tax extension deadline could cost you big if you owe the IRS money. You’ll be paying a late filing penalty of 5% the tax you owe per month, or up to a total of 25%.
You’ll still be hit with a penalty if you underpaid your taxes and then filed the extension. However, it’ll be 0.5% of what you owe per month, instead of 5%.
Do whatever you can to get your taxes in by October 16 so you can avoid piling up penalties.
File on time (and online) by the Tax Extension Deadline
Finally, there’s another reason to file on time. Filing past the tax extension deadline means you can’t file online. Therefore, you’d have to send your taxes in on paper.
Doing your taxes on paper leaves room for more errors, a longer delay in your taxes being received, and potential for your personal information to be lost in the mail.
Until October 16th, you can still file online. See your options here.
Relief for Disaster Victims
You may be eligible for tax relief if you live in an area affected by hurricanes Harvey, Irma or Maria. Therefore, the IRS may have granted you additional time to get your taxes in beyond the October 16th deadline if you filed an extension.
The same goes for anyone required to file quarterly payments. Check the IRS disaster relief page to see if you qualify.
Avoid Future Filing Lapses
Use this as a lesson to help avoid needing an extension next year. What caused you to consequently need more time? Sometimes things come up, you find that you’re missing important documents, or maybe you just waited too long.
Save yourself the headache of needing an extension next time. Take proactive steps so you can get your taxes filed in the spring. Read my tips here for hitting that deadline.
About Your Richest Life
Katie Brewer, CFP® and fee-only financial planner, believes everyone should have access to financial resources and coaching. Contact Katie today for more information and services offered.