Filing your taxes after the deadline can cost you. If the government owes you, you’ll lose your refund if you don’t file within 3 years of the April tax filing deadline date. On the other hand, if you owe taxes, you’ll be subject to the failure-to-file penalty, which amounts to 5% of your unpaid tax bill for every month your tax bill remains unpaid after the April deadline, up to a maximum of 25%. Luckily, if you haven’t filed your taxes yet, there’s still time! And here are some helpful tips:
- All of your income needs to be reported!
- You can file without a W-2
If you are unable to file on time, and unable to access your income statements, you can file Form 4852(Substitute for Form W-2) You can use this form to estimate your income and withholding taxes. Any income statements received afterwards can be corrected by filing Form 1040X.
- Penalties will be applied to you if you file after the deadline!
Each day accumulates penalties and can reach a maximum of 25% of your taxes due to the IRS. You’ll be paying more than just your tax liability; including interest.
- Filing an extension pushes the deadline to October 15 to file.
Although filing an extension will give you a 6 more months, you still have to file an extension before April 15th.
- The IRS can put your refund on hold.
There can be a hold on your text return if you did not properly file your taxes for any previous years. The IRS can and will apply your current tax season refund to any remaining tax debt from previous years.
Need to file an extension? Here are a list of resources available on the IRS webite. https://www.irs.gov/filing/free-file-everyone-can-file-an-extension-for-free