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And that means the clock is ticking for all of us – including the millions of taxpayers who will be faced with a range of new and potentially complicated tax issues. They include unemployment insurance claims, stimulus check income, and, to name a few.
That said, the best thing to do is to start now. (This advice applies every year.) Submitting early means oneand getting one
While the deadline for filing your taxes for 2020 is April 15, you can request more time at the latestWe have all the details on how to do that below.
Can I file my income tax before April 15th?
Yes. And the sooner you file a file, the sooner you’ll get your money back – if one is due. Most repayments are made within three weeks – although this year as the IRS is still trailing in stimulus payments, it may take longer. The agency began accepting returns on February 12, 2021.
What if I miss the deadline?
There is an important distinction between them Submit late and Pay late. If you need more time to prepare your tax return, you can apply for an extension to the IRS using Form 4868. If approved, you will be given an additional 6 months, making October 15 this year the deadline for your tax papers.
But here’s a big, hairy caveat – even if you’re approved for the extension, you still need to pay your estimated taxes April 15 at the latest to avoid sanctions. (Here’s What You Need to Know.) According to the IRS, the late payment penalty is “0.5% of tax due after the due date, for each month or portion of a month that the tax remains unpaid, up to 25%.” That’s just to start; if you do not pay for a longer period, the fines will increase. And there is also a “file failed” fine.
But the tax authorities can waive the fine if you can demonstrate “a reasonable reason for not paying on time”.
Can I request an extension for my company?
Yes. According to the IRS, companies can file Form 7004 to request a deferment until April 15. But much the same rules apply as for an individual; the company still has to pay its estimated taxes by April 15, but can wait until October 15 to file the tax return.
Can I request an extension for my tax return?
Could be. Rules vary from state to state, so you should check with your state tax authority for more information about your specific options for an extension.
If you need help filing your state or federal taxes, there are plenty of them– or you always can