Tax Day in 2016 is April 18th which means you’ll need to e-file or postmark your taxes or an extension by that date. Since that’s just 2 days away, I wanted to share with you a quick tip I read in last week’s Parade magazine:
Even if you owe taxes and don’t send money, you’ll save big if you file your return or an extension by April 18. Why? The failure-to-file penalty can be 10 times more than the failure-to-pay penalty, which is .5% + interest. (http://parade.com/468729/alison-abbey/still-havent-filed-these-tax-tips-can-help/)
One important note: filing an extension isn’t an extension on tax payments – the IRS still wants you to pay an estimate of your taxes owed by April 18, 2016. For more information on how to file an extension, check out this page on the IRS website: https://www.irs.gov/uac/Newsroom/Five-Things-to-Know-if-You-Need-More-Time-to-File-Your-Taxes.
So if you haven’t finished your 2015 taxes yet, make sure you file something (your return or an extension) by Monday – you’ll save yourself a headache by doing so!
Fun fact for today: Washington DC is celebrating Emancipation Day (the day President Lincoln signed the bill ending slavery in DC), which is April 16th, on April 15th in 2016, since the 16th is a Saturday. As a result, Tax Day has been moved to April 18th. So you get 3 extra days to file your taxes this year – yippee! 😉 (Source: https://www.libertytax.com/tax-lounge/tax-day-will-come-3-days-later-in-2016/)
Disclaimer: This blog post is not intended to be tax advice. For answers to your specific tax questions, please consult a tax professional.