If you filed a tax extension for more time on your 2022 return, the deadline is fast approaching.
The federal tax-extension deadline on Oct. 16 is the last chance to avoid a late filing penalty, according to the IRS. Some filers who live in disaster zones may be granted additional time. Highlighters, manila files and sticky labels are your best friends. “
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Here are three things to know if you still haven’t filed your 2022 return, according to financial experts.
1. Knowing the IRS late penalties
If the deadline is missed, you may face two IRS penalties. Kassi Fetters of Artica Financial Services, Anchorage, Alaska, says that the penalty for failing to file taxes can be as high as 25%. The failure to pay fee is 0.5% for each month or part of month. You may be eligible for IRS Free File
According to the National Taxpayer Advocate, approximately 70% of taxpayers qualify for IRS Free File but only 2% used it during the 2022 filing season. You may be eligible for IRS Free File
Roughly 70% of taxpayers qualify for IRS Free File but only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate.
You may be eligible with a 2022 adjusted gross income of $73,000 or less — but Free File is only available through Oct. 16 at 12 midnight ET, according to the IRS.
It’s a good option for those who have simple returns, don’t need ongoing tax-planning advice and could benefit financially from the free service.
There are limited opportunities left to score a 2022 tax deduction before filing, said Houston-based CFP Scott Bishop, managing director of Presidio Wealth Partners. He is also a certified public accountant.
But self-employed, contract or gig economy workers can still contribute to a simplified employee pension, or SEP, individual retirement account, he said. This could be a great way to boost your retirement savings and get a tax deduction. You can set up a SEP IRA until your business’s income tax return deadline including extensions. Get your tickets today and learn more about