SAN ANTONIO – Tax season is in full swing, and time is running out to file your 2024 federal taxes.
The deadline is 11:59 p.m. on Tuesday, April 15.
Experts such as Travis Belton, owner of Your Tax Partners U.S., recommend starting the process as soon as possible, as completing your taxes can be time-consuming.
“I’ve seen some people take up to 30 hours just because the understanding of tax law is confusing,” he said.
You can file for an extension if you cannot meet the deadline.
However, Belton warns that there may be fees associated with this option.
“There is a penalty for underpayments if you have an amount of $1,000 or more,” he said. “It’s called an ‘underpayment penalty.‘”
The IRS offers a payment plan through its website for those who owe more taxes than they can afford to pay upfront. The IRS recommends paying as much as possible before doing that.
Belton said installment agreements typically allow for payments up to 18 months and will be split over time.
The penalty for filing late on the unpaid balance is five percent per month. However, if you work with the IRS and pay at least part of what you owe, you can minimize late payment penalties, according to Belton.
Be aware that the interest rate on unpaid taxes is seven percent yearly.
“It’s encouraged to pay as soon as you can in order to avoid additional penalties and interest or consequences,” Belton said.
Additionally, it’s important to note that filing your taxes may take longer if you’ve experienced a significant life change in 2024, such as getting married or having a child.
As the deadline approaches, make sure to gather your documents and start the filing process to avoid last-minute stress.
