A new 2020 study from the financial company Self revealed that only 27% of respondents could identify the correct deadline day to file your taxes.
Furthermore, only 15% of respondents could identify the deadline to file for an extension.
Why Is This So Important?
If you end up owing the IRS money and you don’t file in time, you will be subject to a 5% failure-to-file penalty on the money you owe each month until you pay – on top of a late payment penalty.
This can quickly add up and cause you significant financial headaches.
2020 Tax Deadlines
(Updated March 23, 2020) The IRS has announced it has extended the tax filing date from April 15th to July 15, 2020. We will update the information below accordingly in the upcoming months. Wednesday, April 15th 2020 is the deadline for filing this year. It’s the typical tax deadline and is occasionally extended on years when the 15th falls on the weekend.
April 15th is also the deadline to file for an extension on your taxes if you need more time to prepare.
What You Should Know About Filing For a Tax Extension
Extensions are simple, extend your deadline for up to 6 months and don’t require a specific reason for the extension, you just have to request it. This is a great option if you have lost tax documents or know you’re going to owe the IRS and need time to make sure you have the money.
However, while filing for an extension will help you avoid the 5% per month failure-to-file penalty, it still incurs a late payment penalty of 0.5% per month that the payment is late.
Don’t put yourself in a tough position by waiting until the last dog dies to file those taxes. If you get an unwelcome surprise and end up owing the government money because of a change or error with your withholdings, it can significantly impact your finances for the rest of the year!
