Tag: late taxes

What Happens If You Don’t File Your Taxes on Time?

Written by Paul Belfiore on April 12, 2024. Posted in Blog, Taxes.

Milford, NH Resident Starts to Panic

If you miss the tax deadline and owe money on your taxes, you will likely incur a penalty up to 5% of the amount of taxes you owe for each month that it is late. This penalty will accrue on top of the tax payment that you already owe the IRS. If this extends beyond sixty days, the minimum penalty is $100 or 100% of the tax due, whichever is less. If you file for an extension this must be done prior to the tax deadline. The extension will give you until October 15, 2024 to file your 2023 taxes. Filing the tax extension in time and subsequently filing your taxes before the October deadline will wipe out the incurred penalties.

What to Do If You Didn’t Submit a Tax Return

Written by Paul Belfiore on May 12, 2023. Posted in Blog, Taxes.

Litchfield, NH Resident Worries About the Implications

If you missed the tax deadline for only the past year’s tax return, you should go ahead and file as soon as
possible. However, if you have missed multiple years of filing taxes the IRS will require you to submit
the past six years of tax returns. Late filers may be hit with failure-to-file penalty from the IRS. The
amount of this fine is based on the amount of unpaid taxes and how late the return is filed. This penalty
is 5% of the unpaid taxes for each month the return is late.

What to Do If Your Tax Refund Is Delayed?

Written by Paul Belfiore on May 27, 2022. Posted in Blog, Taxes.

Amherst, NH Resident Needs Help

If you have not yet received your tax refund, you can track this on the IRS’s web site at https://www.irs.gov/refunds You will need your social security number and the exact dollar amount of the refund that you are expecting. It isn’t unusual for refunds to be delayed, particularly those that were filed closer to the tax deadline. If there is a discrepancy on your tax return or missing documents, this will slow down your refund as the IRS works with the filer to rectify this.

What Tax Documents Should You Collect at the End of the Year?

Written by Paul Belfiore on January 14, 2022. Posted in Blog, Taxes.

Brookline, NH Resident Looks to Plan Ahead

Employers and financial institutions have until January 31^st to send your end of year tax documents. Knowing that this will be coming soon, it is a good idea to keep an eye out for these critical items. This includes a W2 from employers, 1099-INT and 1099-DIV from financial institutions documenting interest and dividends earned throughout the year, Form 1098 outlining any mortgage interest paid, and additional 1099 forms for other income earned.

What to Do if You Can’t Pay Your Tax Bill

Written by Paul Belfiore on December 17, 2021. Posted in Blog, Taxes.

Hudson, NH Resident Has Concerns

If you cannot pay your tax bill when it is due, the outstanding amount owed will begin to accrue interest and penalties. If time goes on without any payment to the IRS, they may put liens on your property or garnish your wages. In extreme cases of tax evasion, violators may be subjected to jail time.

How to Prepare Your Taxes for an Income Increase

Written by Paul Belfiore on September 24, 2021. Posted in Blog, Taxes.

Milford, NH Resident Expects a Big Bonus

Any significant changes to your annual income can push you to the next tax bracket. This means that the additional money received may be taxed at a higher rate. The good news is that the original income that you were anticipating throughout the year will not be taxed at a higher rate. The federal tax system in the United States is progressive, which means as your income increases only these additional portions that exceed the limits of a current tax bracket are taxed at a higher rate.

What Happens If You Miss an Estimated Tax Payment?

Written by Paul Belfiore on July 16, 2021. Posted in Blog, Taxes.

Amherst, NH Residents Asks for Help

For each month that your estimated tax payment is due, but not paid, the IRS charges a 0.5% penalty. As the months go by, this penalty percentage will increase to a maximum of 25% of the taxes owed. Quarterly estimated tax payments are due April 15^th, June 15^th, September 15^th, and January 15^th of the following year. When the date falls on a weekend, the payment is due the following weekday. A missed payment is seen by the IRS as an underpayment and is treated as such.

What Are the Tax Benefits of Marriage?

Written by Paul Belfiore on May 14, 2021. Posted in Blog, Taxes.

Litchfield, NH Newlyweds Wonder About Their Taxes

Once married, you and your spouse can file taxes jointly, which has a number of tax benefits. If either one of you makes significantly less income, this can lower your tax bracket and reduce your tax rate. Combining incomes will bring the partner in the higher tax bracket to a lower level, reducing the couple’s overall tax bill. There are also more deductions available to married couples filing jointly, including a higher threshold for charitable contributions and residency gain.

Are Home Improvement Projects Tax Deductible?

Written by Paul Belfiore on February 26, 2021. Posted in Blog, Taxes.

Bedford, NH Homeowner Has Questions

Homes that are used solely for personal use cannot have the cost of home improvement projects deducted. However, if down the road you sell your home for a profit the money paid for home deductions can be deducted from this profit. This ends up being less of a profit that will be taxed when the home is sold. If part of the home is used for business and this area is affected by the renovations, you can deduct 100% of this cost.

What to Do If You are Missing Tax Paperwork

Written by Paul Belfiore on February 12, 2021. Posted in Blog, Taxes.

Amherst, NH Resident Worries

While employers and institutions have a deadline for sending out tax paperwork, there are plenty of reasons it may fail to get into your hands. Whether lost in the mail, misplaced or some other event, the best step is to contact the issuer of the document. They may be able to send a duplicate copy right away. If you are still not having any luck getting the missing document, you can call the IRS. Providing information to the IRS about the document in question will make sure that you are covered when you go to file your taxes.