The deadline for filing 2024 tax returns is approaching, with most Americans required to file by April 15, but Florida residents have until May 1 this year due to last year's hurricanes.
Taxes must be filed every year, and the IRS has extended the deadline for Florida residents to May 1 because of Hurricane Milton. To ensure timely filing and avoid penalties, there are several steps you can take.
If you owe more taxes than you can afford, you can apply for a payment plan through the IRS website. The IRS advises paying as much as you can upfront before opting for a payment plan.
Travis Belton, owner of Your Tax Partners US, said, "There is a penalty for underpayments if you have an over amount of $1,000 or more. It's called an 'underpayment penalty.'"
"Installment agreements are usually supposed to be up to 18 months and be split up over time," Belton added.
The IRS states that if you file late, the penalty is 5 percent per month on whatever you still owe. However, working with the IRS and paying at least some of the owed amount can reduce late fees. The interest rate is seven percent a year.
Additionally, if you experienced significant life changes in 2024, such as getting married or having a baby, filing could take longer.
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