You’ve still got time to get your taxes done before the April 15 tax filing deadline, but if you’re a procrastinator, here are a few questions you may want to ask yourself.
Do I need more time to file my federal tax return? If you answered, “yes,” you can get an IRS extension. Taxpayers can get an automatic six-month extension to file if they request one by the April 15 tax filing deadline using Form 4868. The extension gives you more time to file, not more time to pay. You must estimate your total tax liability and pay the amount due to avoid paying interest and penalties.
I think I owe the IRS, should I wait to file? No. If you owe taxes but can’t afford to make the payment, you should file your tax return by the April 15 deadline to avoid late filing penalties and interest. You should also contact the IRS at 1-800-829-1040 to discuss payment options, including a short-term extension to pay, an installment agreement or an offer in compromise.
I want to contribute to my IRA, is it too late? No problem, the deadline is April 15 to open a traditional IRA. This may help lower their tax liability for 2014. You may also want to check out the Saver’s Credit. If you’re eligible, you get two tax breaks for the price of one.
I don’t think I can do this by myself. Where can I get help? Gather your important paperwork and head to a tax preparer. Tax preparers love this time of year. They can handle the tedious work for you and submit your return on time.
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