Just over a week until the tax deadline, financial experts have some important tips for people who haven’t sent in their tax return yet.
Rick Rhodes, a CPA at Grey Rhodes Advisors in Palm Beach Gardens, says that you still have time to file your tax return even though the deadline is April 18.
You can also ask for more time until October 16 if you need it.
To ask for more time, click here.
Rhodes wants to warn everyone that even if you file for an extension, you still have to pay the IRS any money you may owe the government by April 18. He says that you won’t have to pay a fee if you file for an extension by Oct. 16 as long as you pay close to what you owe.
He says that some people make the mistake of not paying their taxes at all because they think they can’t pay what they owe to the government. Rhodes says that as long as you file your tax return, the IRS will let you pay in installments or in full, but if you don’t file at all, you’ll have to pay a lot of money.
If you don’t pay, you have to pay 0.5% of the taxes you owe each month, which adds up to 6% per year. The penalty would not be more than 25% of the money you owe.
But if you don’t file, you have to pay 5% of the unpaid taxes for each month. This fine won’t be more than 25% of the missing taxes.
Rhodes said, “My best piece of advice is to stop putting things off.” “Use the time we give you to get your taxes in order and your papers in order. Find some of the free helplines we have in Palm Beach County and the Treasure Coast, and make sure you at least file your taxes or get that extension done, along with any payments that are due at the same time.
If you send in your taxes, make sure the envelope has a postmark before midnight on April 18.
Experts also say that you should put as much money as you can into your retirement plan ($6,000 for people under 50 and $7,000 for people 50 and over) to possibly lower your tax bill. Contributions to personal retirement plans for 2022 can be made until the normal tax filing day, April 18.
