The clock is ticking to settle your taxes and be eligible for a pandemic-related stimulus check.
The IRS reports that more than a million individuals can still claim a stimulus payment, but the cutoff date is April 15.
If you failed to submit a federal return in 2021 or overlooked the recovery rebate credit, you can still qualify for the $1,400 check.
To receive the payment, you must determine your eligibility and file your 2021 tax return.
Don’t forget, April 15 is not just about stimulus checks; your tax bill is also due on Tax Day.
“When you file on time, try to pay as much as you can. That’s the priority. Pay what you are able to,” advised Craig Kirsner from Kirsner Wealth Management.
Kirsner mentions that if you can’t cover your entire tax bill by the deadline, that’s acceptable. There are options available to assist you.
One solution is to charge what you owe to a zero or low-interest credit card, which helps you avoid IRS penalties and fees. If a credit card isn’t feasible, the IRS provides payment plans.
“There’s a short-term payment plan that allows you to pay within 60 to 120 days; the IRS online platform will enable you to request more time,” Kirsner stated.
An online application is available, and you’ll know if you’re approved within minutes. However, be aware that you’ll incur fees, penalties, and interest.
Additionally, there’s an offer in compromise. This program allows taxpayers to propose a reasonable payment amount to the IRS, usually accompanied by a payment plan.
If the tax owed was unexpected, take a moment to review your return and understand why. It might be beneficial to adjust your tax withholdings on your W-4. For those receiving a 1099, setting aside money throughout the year can help you be better prepared for the next tax season.
If you contest the amount owed, you can reach out to the taxpayer advocate service at the IRS. You have the option to dispute penalties through an appeals process. Remember that if you file for an extension, the payment deadline remains April 15.
