Feeling overwhelmed by the prospect of filing your taxes? You’re not alone. But ignoring the problem and wishing it would go away is not the solution.
If you don’t think you can manage to file your 2009 tax return by the April 15, 2010, deadline, file for a six-month extension. It’s easy. Just fill out Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, estimate your tax bill, and pay what you can by April 15, 2010. That will delay the due date for your completed return until October 15, 2010.
With an extension, you can get more time for filing, but you will owe interest on any underpayment. And if you underpay by more than 10%, you may be subject to a penalty, too.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you have paid less than 90% of your tax bill when you file your request for an extension, you'll start racking up late-payment penalties of 0.5% a month on the unpaid amount, up to 25% of the balance, plus interest (currently 4%). Still, that's a lot better than failing to file altogether, which entails a more onerous penalty of 5% a month on the unpaid balance, up to 25%, until the return is filed.
For instance, if you file for an extension and pay your $5,000 tax bill three months later, you'll owe a $75 late-payment penalty plus interest. But if you don't file your return on time -- even if you pay up to three months later -- you'll owe a $750 penalty for failing to file.
“The bottom line is that if you don’t file, you’ll almost certainly pay more in the end,” says Mark Luscombe, principal federal tax analysis for CCH, a major provider of tax information and software.
If you don't owe any taxes, you can ignore the April 15 deadline, but you'll still want to file a tax return to claim your refund. Refunds have been averaging more than $3,000 so far this tax-filing season, up 10% from last year.
-
Small Caps Hit First New High in 4 Years: Stock Market TodayThe Dow Jones Industrial Average, S&P 500 and Nasdaq Composite also notched fresh record highs Thursday.
-
Amex Platinum Just Got More Expensive: $895 Fee and $3,500 in Perks ExplainedAmerican Express raises the Platinum Card’s annual fee to $895 and expands its perks. We break down the changes so you don’t have to.
-
IRS Paper Checks Deadline: What Happens After September 30?Tax Changes Avoid delays when IRS tax refunds and Social Security paper checks are cut off. Here’s what to know.
-
The Most Tax-Friendly States for Investing in 2025 (Hint: There Are Two)State Taxes Living in one of these places could lower your 2025 investment taxes — especially if you invest in real estate.
-
The Final Countdown for Retirees with Investment IncomeRetirement Tax Don’t assume Social Security withholding is enough. Some retirement income may require a quarterly estimated tax payment by the September 15 deadline.
-
Standard Deduction 2025 Quiz: How Much Do You Really Know?Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
IRS in Turmoil: GOP Budget Cuts and Staff Shake-Ups Threaten Taxpayer ServicesIRS Republican lawmakers advance a controversial budget bill that would gut IRS funding further, risking your 2026 tax filing season.
-
Cruise Lines Sue to Block Hawaii’s New Climate Tourism TaxState Tax Your vacation to the Aloha State could come at a higher price tag next year. Here’s why.
-
21 Last-Minute Gifts for Grandparents Day 2025 to Give Right NowHoliday Tips Last-minute gifting is never easy. But here are some ideas to celebrate Grandparents Day.
-
New $6,000 'Senior Bonus' Deduction: What It Means for Taxpayers Age 65-PlusTax Changes If you’re an older adult, a new bonus tax deduction could provide a valuable tax benefit. Here's how it works.
