RALEIGH, N.C. (WNCN) — If you don’t file your tax returns by midnight April 15, you’re going to miss the deadline which is going to create consequences for you.
If you know you aren’t going to make the deadline, you’ve got to file an extension, but be aware — if you file an extension you are going to be hit with penalties and interest on the taxes you owe for this year.
The extension allows an extra six months till October 15 to actually file.
It takes about five minutes to fill out the request for an extension which can be found right here.
And if you are filing an extension, you are not alone.
The IRS estimates a record 14.6 million people are filing extensions this year, along with nearly 8 million LLC corporations — many of which are struggling with changes to the tax laws.
The new tax laws were supposed to lower people’s overall tax burden, but most people didn’t realize they had to change their tax withholding form.
Withholdings are the amount of money an employer automatically takes from a paycheck for local and state taxes.
Under the new law, withholdings changed giving people more money weekly in their checks, but resulting in potentially larger bills at the end of the year.
As a result, millions more people this year suddenly found themselves owing instead of getting refunds.
And tax experts say, the situation could be even worse next year for even more people.
Those familiar with tax law say, there’s only one thing to avoid that burden — and you’ve got to do it now.
“You need to put more money away throughout the year. Whether it’s changing your withholdings to have more taken out of your paycheck or it’s making estimated tax payments,” said CPA Jeffery Levine. “It’s pay me now or pay me later, but you will pay one way or the other.”
It turns out this affects 75 percent taxpayers this year, so if you’re one of those people — start putting the money away now.
If you have an accountant, check with him/her to find out how much additional money you’ll need to take out.