The tax deadline has come and gone unless of course, you filed a tax extension. If you missed the tax deadline and didn’t file your taxes or an extension, here are a few steps you can take to get your taxes done.
File as Soon as You Can
If you owe money, you’ll want to file as soon as you can to avoid the failure-to-file penalty and a failure-to-pay penalty. Although you may have a penalty for filing late, your penalty will be smaller than if you don’t file at all. Filing as soon as possible will reduce what you owe in interest. The longer you wait to file, the bigger the interest penalty.
The IRS also received copies of your tax forms like 1099-Misc or W-2 forms, which reflect your income earned for the year. You want to file as soon as possible so they don’t show that you owe a bigger tax liability since they don’t know all of the tax deductions and credits you qualify for. TurboTax will check and see if you’re eligible for over 350 tax deductions and credits.
You may also have a tax refund waiting. While you won’t receive a tax penalty if you have a refund coming, every year the IRS reports close to $1 billion dollars in unclaimed tax refunds because people don’t think they made enough money to file their taxes. Even if you made under the IRS income threshold for filing ($12,000 single, $24,000 married filing jointly), you should file if you had federal taxes withheld from your wages or you are eligible for tax credits like the Earned Income Tax Credit. If you do not file your taxes and you are entitled to a tax refund, you have to claim your tax refund within three years of the tax return due date. You also need to file if you received an advanced premium tax credit to help you pay for health insurance in the Health Insurance Marketplace.
Even though you waited to file your taxes you can still go online and e-file your taxes conveniently from the comfort of your own home. TurboTax is available for e-file until October 15 when the IRS closes e-file for the 2018 tax year. If you mail in your tax return, it will take the IRS longer to receive and process your tax return; possibly up to 4 weeks. Why pay interest on days when your return is in the mail? E-file allows your tax return to be received and processed by the IRS quickly and easily.
Make Payment Arrangements
Some taxpayers put off filing their taxes because they owe money and they don’t know how they’re going to pay. If you put off filing, for this reason, there are steps you can take that will be better and less costly for you. You should still file your taxes, pay what you can, and then set up an installment agreement with the IRS through the IRS Fresh Start Initiative. If you qualify, you may be able to pay off your tax liability over six years and if your total tax liability is less than $50,000, you may be able to apply for an installment plan online.
Also, starting January 1, 2019, the user fees for installment agreement revisions (reinstatement/restructuring) initiated through an Online Payment Agreement (OPA) has changed to $10. This user fee applies only to installment agreements established through an OPA. Low-income taxpayers may be reimbursed this fee if certain conditions are met.
Don’t worry if you missed the tax deadline, you can still file with TurboTax. TurboTax has you covered and will ask you simple questions about you and give you the tax deductions and credits you’re eligible for. If you have tax questions, you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. TurboTax Live CPAs or Enrolled Agents are available in English and Spanish and they can also review, sign, and file your taxes.