Even a messy shoe box full of receipts can lead a tax preparer to find some hidden refund opportunities, so it's advantageous to consider itemizing if you have a home, kids, or a newly complicated tax situation. Believe it or not, the process of filing an extension on your taxes is probably a lot more painless than you think.
While you have all your tax forms and documents handy, this is the ideal time to analyze last year's finances and use those insights to prepare for the big changes that will occur in 2018 and beyond.
According to federal law, District of Columbia holidays impact tax deadlines in the same way that federal holidays do; therefore, all taxpayers will have two extra days to file this year. These numbers should come to light down the road, as this is by far the busiest few days tax preparers and accountants have all year as they scramble to meet the deadline.
If you plan to submit an extension form to the IRS, you must submit form 4868. "You should file your tax return on time each year, even if you're not able to pay all the taxes you owe by the due date". The standard deduction almost doubles for single filers and married couples who file together thanks to the new tax law, so it may make sense to opt for the standard deduction when preparing your 2018 taxes.
So if you were planning to use a HELOC to pay down higher interest auto, boat or student loans, you'll need a Plan B. Freelancers or other gig-economy workers still waiting on a 1099 could be in the same boat. If you haven't filed yet, experts say you need to file for an extension. "They should still file their return to avoid a penalty for failing to file". The penalty for not filing is 5 percent per month up to a maximum penalty of 25 percent of the balance due.
The IRS automatically identifies taxpayers located in the covered disaster area and applies automatic filing and payment relief. Certain deadlines falling on or after December 4, 2017 and before April 30, 2018, may be granted additional time to file through April 30, 2018.
If you are unsure how much you owe in taxes, here's some math to figure out what to pay now.
Tax refunds from four years ago are gone for good after Tuesday.