Missed filing your taxes on time this year? What should you do next? Here we take you through what happens if you don’t file taxes on time as well as what you can do next.
What happens if you don’t file taxes on time
As taxpayers, a very important fact to remember is to pay taxes on time. Now, you may be thinking, What happens if you don’t file taxes on time?
There are several consequences that may lead to the seizure of property or wages. In this article, we will discuss details on what happens if taxes are not filed on time.
When can you file your taxes?
A very common question among taxpayers is, When can you file your taxes? or When can you start filing taxes?
The Internal Revenue Service or IRS opens the tax filing season at the beginning of the fiscal year. 24th Jan of every year is usually the time when you can start filing your federal taxes and within the 18th April deadline.
Let’s look at what happens if I don’t file my taxes? or What happens if you don’t do your taxes?
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What happens if you file your taxes late
If taxpayers are into late tax filing, then they are in a dilemma as to what happens if you file your taxes late. This section is focused on guiding you when you have questions like what happens if you miss the tax deadline or what happens if you don’t file taxes on time. Furthermore, you can also seek guidance as to what happens if you forgot to file taxes, leave alone miss the deadline.
What is the penalty for filing taxes late
Let us first try to understand what is the penalty for filing taxes late.
Penalties for filing taxes may reach up to a rate of 5% of the amount tax return due for each month you are late. You can apply for an extension of the deadline if you anticipate failure to file a penalty. But remember to abide by it else you may have to pay a penalty for tax extension too.
What happens if you mess up your taxes
Taxpayers are often in a dilemma trying to understand like what happens if you mess up your taxes? or will the IRS catch my mistake?
You need to file an amended tax return. If you fail to amend, the IRS will catch the mistake and you may be charged penalties and interest.
Can you go to jail for not paying taxes
You may be wondering, can you go to jail for not paying taxes?
IRS will not put you into jail if you have filed your tax return but have not paid the taxes properly. But if you evade taxes, do not file a tax return or help someone to evade taxes. Then you may land up in jail. It may be 1 to 5 years in jail as these actions are considered fraudulent.
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How do I know if I owe the IRS
There are often common doubts among taxpayers on how do I know if I owe the IRS? or how do I find out how much I owe the IRS.
You can login to your federal tax account and find out the amount you owe. It will also show the details of your balance, the payment history for the past 18 months, and necessary information related to the tax return for the current year.
How far back can the IRS go for unfiled taxes
If you want to understand, How far back can the IRS go for unfiled taxes? It is 6 years.
The IRS can trace back to a maximum of 6 years to find out any unfiled tax returns or tax deficiencies. Normally as standard practice, the IRS does not check back beyond 6 years.
Why do I owe money on my tax return
You may be thinking, why do I owe money on my tax return?
If you have not paid your taxes or paid fewer taxes as compared to your income level; then you owe money to the IRS. You can prevent such an occurrence by evaluating the tax liabilities before.
What to do if you owe the IRS a lot of money
Finally, let us try to focus on what to do if you owe the IRS a lot of money?
Here are the ways out
- Opt for an instalment agreement with the IRS
- Try for a personal loan
- Ask for an extension
- Use credit or debit card
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What happens if you file exempt from taxes
If you want to know, what happens if you file exempt from taxes
You will be provided with a tax refund if you paid more taxes in the specific fiscal year. This is possible when you file a tax exempt with your federal tax employer.
How long can you file exempt without owing
As an answer to the question, how long can you file exempt without owing?
There is no maximum duration granted by the IRS for allowing tax exempt. It is recommended to balance out the tax to be paid with the amount which is withheld, preventing a huge refund at the end.
What happens if I claim exempt on one paycheck
If you are looking for an exemption then you may be wondering what happens if I claim exempt on one paycheck?
In a quarter, you should withhold the minimum amount and then again pay the additional amount in the next quarter. In April the annual tax return form needs to be submitted to settle the amount for the full year.
What happens if you claim exempt all year
Another doubt which arises among taxpayers regarding exemption is what happens if you claim exempt all year.
It implies you do not have to pay tax throughout the year. Also, it means that you will not be eligible or qualified for a tax refund; except if you issue a refundable tax credit.
Is filing exempt illegal
If you want to claim exemption and still in doubt as to, is filing exempt illegal. Well, the answer is No. However, there are some criteria that need to be met for filing tax exemption. Besides, even if you meet those criteria, your employer may still decide to withhold Medicare and Social Security related taxes.
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Filing exempt on taxes for 6 months
While filing exempt on taxes for 6 months, the IRS does not check for how long or the duration of the exemption. You can choose for 6 months i.e. 2 quarters simultaneously. Only you need to balance the tax bill to not end up with a large refund.
Is there a penalty for claiming exempt
Are you in a confusion to understand is there a penalty for claiming exempt?
No, there is no penalty for claiming exemption. But you need to file your return within the due date. You must not also evade taxes. Else you will be penalized for being fraudulent.
What happens if I accidentally claimed exempt all year
While claiming exemption, there may be situations when you need to be aware of what happens if I accidentally claimed exempt all year.
You can fill out another W-4 form with your employer. Also, you can estimate the tax amount to be paid and paid while filing the tax return.
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Frequently asked questions about filing taxes
In this section, we will discuss frequently asked questions about filing taxes. These questions will help you to receive responses to some very critical facts and information on What happens if you don’t file taxes on time?
How to file taxes with no income
You need to have a minimum income to file taxes. So, to answer, can you file taxes with no income? or how much money do I have to make to file taxes?
You do not have to file a tax return if you have no income or a very minimal income.
What age do you start paying taxes?
Any individual who is below the age of 65 years needs to file a tax return if they are earning the threshold amount as stated by the IRS. If you are 65 or above, the threshold amount for earnings is higher. The age of the older spouse is considered for married couples filing separate tax returns.
What age can you stop filing income taxes?
You can stop filing income taxes at the age of 65 on the following conditions:
- Not married and earning less than USD 13,850
- Married and combined earnings is less than USD 27,000
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How to file back taxes without records
You need to get the Wage and Income transcript if you do not have the records for filing back taxes. You can request the transcript and the information as far as 10 years backward.
How far back can you file taxes
As per the IRS norms, you are required to file tax returns 6 years back. The duration is considered to be good as per the rule books of the IRS. However, in certain situations, they may go more than 6 years backward for verification.
What happens if you miss a quarterly estimated tax payment
If you miss a quarterly estimated tax payment, then you are liable to pay the interest charges and the penalties as accrued to date. Normally the IRS will levy a penalty of 0.5% of the total amount of tax due following the due date.
How long do you have to keep federal income tax returns?
You need to keep records of the Federal income tax returns for 3 years starting the date you filed your original income tax return or 2 years from the date taxes were paid. The years depend on which one is later among the two.
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How to file taxes without w2
Without W2, you can still file taxes by filling out form 4852. The form is named, “Substitute for Form W-2, Wage and Tax Statement.” You need to fill in the information for withheld taxes and wages. The pay stubs will be required for the same.
How to pay less taxes
You can pay fewer taxes in several ways:
- Invest amount in retirement savings plans
- Go for health care and child care savings accounts sponsored by employers
- Check for tax credits and tax investments
How long does it take to file taxes
For e-filing of a tax return, it normally takes 3 weeks approximately from the day the IRS receives and acknowledges the acceptance of the return. While if you are mailing the form, then you need to wait for 6 to 8 weeks for the processing to complete.
If you have no income can you get tax refund
If you have no income you can still receive a tax refund. It will depend if you qualify for a refundable tax credit like additional child tax credit or the earned income tax credit. And if you want to know, “How many years back can I get a tax refund?”, the answer is 4 years.
What happens if IRS has no record of my tax return
If the IRS has no record of my tax return or the IRS lost my tax return, then you will receive letter 4903 from the IRS. After you receive it, there will be 10 days for you to respond to the IRS. The purpose of the letter is to request for filing the tax return.
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How to file your own taxes for the first time
Here are the steps on, how to file your own taxes for the first time.
- Collect and arrange all your tax documents like 1099, W-2, tax deductions, receipts, etc.
- Check for all the related tax deductions and credits like education credits, earned income tax credit, standard deductions
- Remember to add your gig income while filing the tax return like freelancing, part-time jobs, food deliveries, rideshare drivers
- Opt for e-filing on the income tax returns. It is faster, almost 3 weeks for the whole processing to complete. Mailing paper copies takes time and the processing time is also more.
- In the end remember, What happens if you don’t file taxes on time? The answer is penalties and interest charges will be levied by the IRS.
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