Did You File An Extension for Your 2021 Tax Return? Your Deadline is Near

Just a quick reminder - If you are one of the 19 million taxpayers that asked the Internal Revenue Service for an extension by filing Form 4868 for their 2021 individual income tax return, your deadline is near. Your extension ends on Monday Oct. 17 because Oct. 15 will fall on a Saturday. Here are some guidelines to keep in mind if you are filing on extension this year.  

1. For taxpayers with K-1s. If you’re waiting for a Schedule K-1, get it to your tax professional as soon as possible  
2. E-file, if possible. Filing electronically and choosing direct deposit can help you get a refund faster, the IRS says.  
3. Pay up. For those who owe taxes and haven’t paid in yet, the sooner you pay, the less you will owe in penalties and interest. For the third quarter of 2022, the interest rate on underpayments is 5%. It jumps to 6% on Oct. 1.  
4. Double check Covid-related payments. Before filing, double check 2021 stimulus payment and advanced child-tax-credit amounts. Mistakes related to those Covid breaks have caused delays in tax-return processing and refunds, the IRS says.  
5. What if you miss the Oct. 17 deadline? There is no extension beyond Oct. 17. But if the IRS owes taxpayers a refund, it won’t charge penalties for filing late.

As always, thank you for stopping by. Have a great Wednesday. Until next time...Diana