Income taxes are due Monday, April 18. The IRS will receive tens of millions of last-minute files electronically and through paper forms as the federal deadline for individual tax filing and payment approaches.
This tax season, as per ABC10, the IRS had received more than 103 million returns and issued more than 63 million refunds totaling more than $204 billion as of April 8. By comparison, more than 169 million people filed their 2020 tax returns.
Tax season is just around the corner, so people are advised to prepare their budgets. Fortunately, there are available tools that can help estimate taxes and process papers online.
When Is the Last Day To File Your Federal Tax Return?
CNET mentioned that the deadline for most state income tax returns is also April 18, while a few states have varying deadlines. Some states, of course, do not require you to file income taxes at all.
However, victims of winter storms in Tennessee, Illinois, and Kentucky, as well as victims of wildfires in Colorado, will have their federal tax filing deadlines extended until May 16.
Meanwhile, those serving in the military overseas may be given more time to file their return.
Read More: Child Tax Credit: 5 Major Reasons You Should Opt Out Now, Choose $3600 Lump Sum
What Can You Do if You Fail To File Your Income Tax Returns by April 18?
Consider filing a tax extension if you're missing information or otherwise won't be able to file by midnight Monday.
Before the April 18 deadline (or April 19 if you live in Maine or Massachusetts), taxpayers can submit an extension for their federal tax returns online, extending the deadline to Oct. 17. Some people will have to do the same thing with state taxes.
The IRS said that getting an extension does not increase your chances of being audited, and it also does not give you more time to pay whatever taxes you owe. To avoid possible fines, those who receive an extension should estimate and pay any unpaid taxes before the April 18 deadline.
What Happens if You Don't File Your Taxes on Time?
According to CNET, there is no penalty for filing federal taxes late if you're owed a refund; however, this may differ for your state taxes.
You may be subject to a late-payment penalty of 0.5% of the taxes owed for each month your return is late, with penalties increasing to up to 25% of your unpaid tax depending on how long you take to submit.
Meanwhile, if you owe the IRS money, penalties and interest on any unpaid taxes begin to accrue after the filing deadline. The late filing penalty is 5% of the taxes owed for each month your return is late, with costs increasing to up to 25% of your due balance after 60 days.
What Is the Best Tax Software To Finish Your Return or File an Extension?
The best online tax software can electronically complete and file your tax return in a few hours, and can also help you file a tax extension. The best online tax software will walk you through the complicated process of filing your tax return quickly and efficiently, ensuring that you take advantage of all available deductions and credits to maximize your refund.
CNET named TurboTax by Intuit as the best tax software for most people as the software integrates tax expertise with a simple user interface for a seamless user experience.
Related Article: Tax Refund Delays: 5 Steps to Follow to Get Your Refund Fast!
