Have you filed your taxes yet? If not, then you better get a move on it. April 15 is just around the corner. Maybe you haven’t received your W-2 form, you don’t have the money to file your taxes or you don’t know how to do taxes. However, these are not acceptable excuses because sooner or later, the IRS will find out.
Not filing and not paying aren’t the same— the IRS will penalize you for both things. You might be asking yourself, “What if I don’t have the money after I calculate my return?” In this case, you are still required to pay the amount. If you don’t pay then you will be charged a penalty fee on top of the amount that you owe at 5% per month: 4.5% for not filing and 0.5% for not paying. The total penalty for not filing and paying can eventually add up to for your total income of 47.5%, where 22.5% comes from filing late and the other 25% because of the late payment. This information should keep you from never being late on filing.
Ignoring bills and notices from the IRS can lead to tax evasion. A tax evasion could lead to marks on your credit, criminal record and even mean attending a court hearing. If you’re found guilty of tax evasion, you could be fined up to $25,000 and serve up to one year in prison. Yes— all of this can happen just because you didn’t do your taxes.
You’re probably wondering if there are any tips I have to offer so that you aren’t filing late. If you follow these five simple steps, you’ll never be late on your taxes again.
The first step is to gather all your documents. This includes your W-2 form and all receipts from education costs.
The next step is to know deadline dates. All taxes are due April 15. Income forms should have already been mailed to you by Jan. 31. If you happen to not receive the papers you need, then you must call the company that you work for.
The third step is to get organized using three folders. Put your W-2 forms in the first folder, filed paperwork in the second folder, and then all of your receipts in the third.
The fourth step is to file your taxes. You can file your taxes yourself or hire an expert to do it. Make sure you feel comfortable with the decision, and then file away.
The final step is to just relax. You no longer have any stress on your shoulders due to worrying about the April 15 deadline.