If all else fails, you can request an installment agreement from the IRS. Just like paying off a loan, the more and earlier you pay, the less you pay in interest and penalties. Late payment penalties are based on your outstanding balance, not your original tax bill. If you can't pay your tax bill in full, pay what you can. These include automatic monetary penalties for late filing, as well as the possibility that the IRS thinks that you are trying to evade your taxes because you can't pay what you owe. There are separate and larger penalties for failing to file a return. Step 4: File Your Tax Return Anywayĭon't neglect to file your tax return because you can't pay. The best thing to do is to research whether there are credits for any large expenses you had throughout the year that might come with tax incentives. If you used tax software, you might have found that some questions were confusing or buried, so you might have accidentally skipped over a credit. These could include business expenses, energy efficiency upgrades, child credits, and more. Go back and look for any deductions and credits you might have missed. Step 3: Check for Other Deductions and Credits If you have already filed your tax return without maxing out your retirement accounts, don't worry you can still amend your return if you make your contributions in time. The deduction you receive will reduce what you owe. Don't forget that you can still open and contribute to an IRA account up until your filing deadline. If you have money in the bank and don't want to give it to the IRS, upping your retirement savings could be a solution. If anything doesn't match up, take a closer look. Of course, some numbers will be slightly different, but the differences should match your raise, reduction in hours, or other life changes. When looking for errors, the best place to start is a line-by-line check, comparing this year's return to last year's return. Common errors include entering a wrong number, adding an extra zero, or entering the same income in two different places. If you used tax software, note that it checks the math based on what you entered, but it doesn't know if you entered the right numbers. Step 1: Check for Errorsįirst, go through your return and make sure that you haven't made a mistake. There are several ways to bring that hefty tax bill down. Have you just completed your taxes and discovered that you owe way more than you expected? Don't panic.
0 kommentar(er)
