NORTHWEST ARKANSAS, (KNWA/KFTA) — Monday, May 17 is the last day to file individual federal and state income taxes. If you haven’t done so already, time is running out. You need to get your filing completed by midnight.
If you’re not going to make the deadline you may consider filing an extension. May 17 is also the last day to file an extension using form 4868 if you need more time.
However, an extension to file is not an extension on paying the taxes you may owe. That is still due Monday.
When completing the form you will need to estimate how much taxes you may owe, that is your tax liability. You must that amount to avoid any penalties and interest fees.
Grass Root Taxes, Tax Accountant, Diane Hagerty says the worse thing to do if you owe taxes is to not take any action.
“Not filing your taxes because you think you’re going to owe is a worse decision than filing and owing at the end because then they hit you with failure to file penalties which are 10 times worse failure to pay,” said Hagerty.
She adds if you don’t owe any taxes you have about three years to claim a refund before it expires.
Now there is no penalty to file an extension. If you do file an extension you will have until October 15 to file your taxes.
This has been an extremely busy tax season, especially with several tax law changes. With the deadline approaching there are some folks who may consider filing on their own.
Hagerty says if you have a simple tax return you can go to a professional but you can also use a tax preparing software online.
Make sure you have all of your documents, for example, W2-s if you were employed, your social security number, or tax ID number for yourself and dependents.
She adds tax software systems have been updated to walk you through the entire process including tax credits and deductions, reporting if you received your stimulus checks, the amount you received and more.
“I know a lot of things changed in March. It took a few weeks for everybody to catch up, but as of now you should be able to get tour unemployment correct, you should be able to get your premium tax credit if you paid that… you should be able to get that back,” said Hagerty.
She recommends using the direct deposit option if you have a refund. Hagerty says you will get your refund back much faster that way. You will need to input your bank routing and account number to do this.
If you are filing a more complicated tax return you may want to consult with a tax professional.
Again, you have until midnight to file your taxes or to file an extension if you need more time. Remember payment is still due.