The middle of April will be here before you know it! April 15th is Tax Day here in the United States. Would you be able to explain to an outsider what the day represents? Every April 15th, usually, individual income tax forms are due and payment must be made for any income tax that is owed.
Ok, first things first, if you have just started scrambling to organize all documents for the first time this year you may need an extension. However, if you have all of your documents in place, but you are waiting for more information, you may not need to worry about filing on tax day. If you do not owe the government due taxes, and as a result receive a tax return, you will not be penalized for filing past April 15th. Breathe easy if you will receive a return, the April 15th deadline doesn’t apply to you.
If you know that you will not receive a return this year and you don’t think you will meet the deadline of filing before the end of the day on tax day, you should file for an extension. If you do not file an extension before the end of the day on April 15th you will face steep penalties for all taxes that are due. The good news is filing for an extension is completely free.
There is bad news, however, to the equation. While it is free to file an extension and you will avoid the penalties associated with not paying on time. However, filing an extension does not mean that it gives you an extension to pay those taxes on the 15th. Meaning, you will not be penalized, but you will need to pay interest on the back taxes. If possible, send what you estimate you will owe on your income tax. This way you will avoid any interest accrued while you work to file your taxes past tax day.
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