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We’re down to the wire. Here’s some valuable advice if your tax return still isn’t complete.
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Back in January, when the 2023 tax-filing season began, it may have seemed like you’d have plenty of time to complete your 2022 return. But alas, we’re about to enter the month of April, and your return isn’t yet complete.
If you fell victim to procrastination this year, you’re no doubt in good company. Or maybe you didn’t procrastinate. Maybe some of your tax forms were delayed, or your accountant kept blowing you off.
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Either way, there’s not a ton of time to get your taxes done by this year’s April 18 filing deadline. So if you’re down to the wire, here are some tips you might find helpful.
1. Don’t rush the process
At this stage of the game, you clearly can’t afford to spend too much time finishing your taxes. But you don’t want to rush through the process, either. If you do, you might make a mistake that costs you money, either in the form of a lower tax refund or a larger check you’re sending the IRS.
2. Don’t assume you can’t get help
At this point, many tax professionals will indeed politely turn you down if you ask for help in filing your return by April 18. But that doesn’t mean you can’t get help at all.
Reach out to your network of friends, neighbors, and colleagues, and see if anyone knows of a tax professional who can squeeze another client in. Outsourcing your taxes could not only take some of the stress off, but result in a larger refund or a lower IRS bill.
3. If you can’t make the deadline, request an automatic six-month extension
If you’re due a refund from the IRS and you’re late submitting your tax return, you’ll be punishing yourself in that it will take that much longer for that money to hit your bank account. But the IRS itself won’t penalize you for being late.
The rules are different, however, when you owe the IRS money. In that case, failing to file your tax return by the deadline will result in a penalty equal to 5% of your unpaid tax bill per month or partial month your return is late, up to 25% of that total. That’s a penalty you really don’t want to get stuck with.
As such, if it’s looking increasingly unlikely that you’ll have finalized your tax return by April 18, request an automatic extension. That will give you an extra six months to get the job done, and you won’t face the aforementioned penalty.
Do keep in mind, though, that a tax extension won’t give you more time to pay any taxes you owe from 2022. If you don’t pay your tax bill in full by April 18, you’ll face interest and penalties on that unpaid sum — but the penalties won’t be as steep as the penalty for failing to file your return on time.
Many people wind up in a crunch on the tax front come early April. If that’s the situation you’re in now, these tips might help you keep your cool at a time when you may be on the verge of panic.
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