Tax Payers Beware Of Late Fees After April 15th
April 15th is the final day to file taxes, and if you are planning on filing last minute, there are a few things you need to know.
If you are running behind on filing your tax return, you are not the only one, "I got really behind this year, and I had some computer problems at home that delayed me, and so rather than rassle with the pressure of it all, I asked for an extension and, you know, paid my fee or anticipated fine and penalty and all that and took an extension and so now I can sleep at night," says tax payer, Patrick Sweeney.
And that anticipated liability payment is something tax advisers say you can not get an extension on, "There's a higher percentage of penalty for not paying your taxes by April 15th. They get an extra six months to file their tax return because they don't have all of their documentation, but they'll still have to pay their liability by April 15th," says H&R Block Tax Advisor, Artis Thomas.
New tax laws this year could affect teachers who purchase school supplies for their students from their own pockets. In years past, there was an educator's credit that gave teachers $250 for those types of purchases, "That means that the supplies and things they they are actually purchasing now is more like a gift and just an investment for them to their students and things like that, but they're not getting reimbursed that credit that they used to have before," says Thomas.
Some tax payers, like Barry Parker, say they wish that was not the case, "That's money that comes out of their own pocket to, you know, spend for the state or something, you know, they should help them out in some way on that."
But teachers are not the only people being affected. If you earn more than $200,000 per year, you may see almost a 1% increase in what you owe, "It used to be that everyone had the flat same amount, so now those high income tax payers will have more tax on their social security and their medicare," says Thomas.
Thomas also says home owner's may not get quite the credit they were expecting on their federal returns for 2014 because the credit is being limited.
For those who file for an extension, that new 6 month deadline hits on October 15th.