Procrastinators received an extra special treat this year. Three extra days to put off paying their income taxes.
Emancipation Day, a legal holiday in Washington D.C., delayed tax day until April 18. It is normally April 15.
So, what about the people who still didn't get them done in time?
You're not alone. Michael Micheletti from H&R Block said nearly one in three taxpayers wait until April to file, and you'll see many of them lined up at the post office mailbox just before midnight on tax day. Micheletti answered some FAQs:
1. What should taxpayers do if they can’t file by April 18th? You really need to file something by the 18th. The penalty for not filing a tax return is 10 times greater than the penalty for not paying in full. The best way to avoid this penalty, which could add up to 25 percent to your tax bill, is to file a completed tax return or apply for an extension by April 18.
2. Are there any requirements to filing an extension? An extension to file is not an extension to pay any taxes you might owe. To avoid a penalty, you will to need to estimate what you owe and pay at least 90 percent by April 18. By filing an extension you buy yourself until Oct. 17 this year to complete your return.
3. What if you don’t have the cash to pay by the 18th? If you can’t pay your balance due all at once, you can request a short-term extension to pay, make an installment agreement or even pay with a credit card. Talking to a tax professional about these options can help taxpayers save time and money when they are short on both.
