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2012 Income Tax Deadlines

Mind these tax deadlines as the new year begins

2012 will soon be here. Before you ring in the new year, take a look at the IRS tax calendar to remind yourself of the upcoming tax deadlines.

January 10, 2012 – Those who earned more than $20 in tips during December must report tips to their employers with Form 4070: Employee’s Report of Tips to Employer.

January 17, 2012 – E-filing begins for 2011 returns.

Also, if you did not pay 2011 income tax through withholding you must pay your final installment of 2011 estimated tax with Form 1040-ES: Estimated Tax for Individuals. If you plan on filing your return and paying the tax due by January 31, you can disregard this deadline.

January 31, 2012 – Individuals who must make estimated tax payments can opt to file their return and pay any tax due by this date, thus preventing penalties for missing the January 17 deadline. Continue reading “2012 Income Tax Deadlines”

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The Deadline to File Taxes for 2010 is Fast Approaching

If you requested an extension, make sure to file your 2010 taxes before the October 17 deadline

Attention! Tax deadline approaching! If you’re one of the people who requested a six month extension way back in April to file your individual 2010 tax return, then Monday, October 17, 2011 is the deadline for filing federal income tax online.

2011 has been the year of delayed tax deadlines. Thanks to the special District of Columbia holiday Emancipation Day, the regular deadline to file taxes 2010 was pushed back from April 15 to April 18. And now the deadline for extension filers is pushed back as well. Normally the IRS gives you until October 15, but since this year the 15th happens to fall on a Saturday, you’ve got until Monday the 17th.

Even though you’ve got a few extra days to prepare those returns, don’t let the delayed deadline lull you into procrastination. The October 17 income tax deadline is right around the corner, only a month away in fact. If you don’t want to get caught in a rush at the last minute, now is the time to get your paperwork in order and start preparing your return. Continue reading “The Deadline to File Taxes for 2010 is Fast Approaching”

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File your income tax extension before the April 18th income tax deadline

Consider filing a tax extension and do it online for free!

The few short days remaining before the tax deadline may not be long enough for you to get your records in order, especially if they involve such delicate matters as testimonials. In that case, you should file an extension. This is because you absolutely want to avoid the failure to file penalty as it is the most onerous. You can file a tax extension online for free right here.

Even if you don’t believe you owe any taxes, and therefore would suffer no penalty for late filing, it is strongly advisable to opt for an extension, because if it turns out you’re wrong it will cost you dearly. The penalty for late filing is 5% of the tax balance due per month up to a maximum of 25%. Filing a tax extension online will push your tax deadline forward six months to October 17th and exempt you from the penalty.

If you have a tax liability and owe the IRS money but are unable to pay in full a tax extension will also give you some breathing room to save the needed cash. However, note that you will still incur the penalty for late payment of taxes unless you can demonstrate reasonable cause to the IRS for not paying on time. The penalty for late payment is 0.5% of the amount owed for each month from the deadline until the tax is paid in full. You can avoid it by paying at least 90% of your tax liability.

In addition, the IRS will charge you interest monthly on the total owed until the tax is paid in full. The rate of interest is currently posted at 4% annually and is open to change quarterly. Note that irrespective of whether you’re exempt from the late payment penalty you will still be billed interest.