Is It Now The Time To File Taxes?
“Is it time now that I pay my Taxes?” “When should I file my tax returns?” “What is the beginning of a tax season?” “What would be the right time to file my taxes?” these are pretty common questions that pop out of our minds when we see calendar flipping to a new year. Well, a reply to this is pretty much dependent on certain factors.
Why Is It Wise To File The Taxes Early?
Taxpayers can always file their tax returns by filing their returns on or before April 15 every year. But you need not wait till the last minute to finish your filings. Filing tax early is reward-some in several ways.
If you file your taxes early, it gives you enough opportunity to gather all the information you need to save amount on the deductions. Doing this way, you can overcome the tax-filing blues, what’s the amount and where are those receipts etc. More than anyone your accountant will be more delighted as he gets enough time to work on your account and he would be more than happy to start with your account right away. Apart from these early filing gives you a better prospect of avoiding fraudulent ways that may arise of tax evading.
How To Process And File Taxes?
Your employer will have to give you W-2 forms for the earnings you made during 2022 by Jan 31, 2023. The employer is also supposed to send independent contractors’ most of the 1099 forms by the above-said date.
Until it is Jan.23, 2023 the IRS won’t start processing and accepting tax returns for the year 2022. Electronically filed tax returns will be accepted by the agency on the said date and it also processes paper returns that reach its office before the said date along with payments in it.
Timing is very important in life and it is equally important to tax returns as well. If someone waits too long to file the tax returns, he may miss the deadline and this could invite late fee, charges and also penalties in some cases.
It is always a good idea to pay the taxes on time which happens to be April 15 this year. But it would also amaze you to know that these taxes filed at different parts of the season help you save a certain amount of money and get rid of fraudulent ways. All this is one way or the other dependent on your criteria.
Best Thing Is To Avoid Penalties
An ideal time to pay taxes: It’s by the deadline April
Tax Dues are supposed to be paid by the deadline, if they are not paid on time then the IRS (the agency that takes care of these filings) could impose a penalty of about 5% for every month throughout the year or it can fine with a partial amount which could rise to a maximum of 25% of the final amount. Extensions are given at times but even those extensions end by April.
Getting an extension does not guarantee you extra time to Pay your tax liability. Hoping so if you delay in filings taxes, which go way beyond April, then you are liable to pay interest on the amount and also the agency could charge you a late payment fee, this late fee could be as much as 0.5% of the total outstanding tax every month and it can go up to the highest value of 25%.
Get back your Refunds ASAP
Best Time To File: ANY TIME – BUT MAKE SURE IT IS ELECTRONIC
For getting a return the very moment, you pay your tax, you need to do it electronically but not using paper returns. Usually when you go with paper returns it generally takes six to eight weeks for the processing to complete, when these Filings are made electronically (“e-filing”) the returns are quick as they immediately hit the returns on the tax filings. These refunds are made in no less than 21 days to the most. And you need not wait for the returns check to reach your home through the U.S. postal services. To get the money wired straight into your bank account, file your taxes electronically. You can also track your returns from the stage the agency receives your file, to the point it is in process and finally as they refund your money everything can be accessed.
It All Depends On The Tax Credits You Claim
The “PATH Act” which is The Protecting Americans from Tax Hikes Act of 2015, has seen the rise in the delay of some of the refunds. Earned Income Tax Credit (EITC) on claiming this you might be expecting a return or you could also expect a tax refund claimed from the refundable part of the Child Tax Credit, but as a matter of fact the IRS isn’t allowed to give away your money and are advised to wait till the mid-February no matter when they received the filed amount. IRS is empowered by the PATH Act which gives it enough time to study these return claims so to weed out any frauds detected, this results in the tax hike for all the taxpayers across the board.
Even though a refund is due only in part of the EITC or the child tax credit it is still subjected to delay. Suppose a person pays $1000 in taxes which happens to be excess of the tax and if the person is also entitled to a refund of $1000 EITC, the IRS is allowed to return the $1000 paid in excess and has to withhold the payment of $1000 EITC till mid-February, on the whole doing so the refund process gets delayed.
Amended Tax Returns Should Be Paid On Time
- In spite of major concerns, the IRS audits the tax returns that belong to the previous Six tax years only. You might count upon your chances to wait and see if the IRS will catch you with a fault, but it’s much better to soon rectify those faults before it’s too late. For all those faults filed during the audit, the IRS will levy interest and penalty which goes up to the due date of the actual Tax payment. So, these will turn out to be a costly affair to wait and watch upon the mistake and get caught.
To file your tax returns you can choose various online sources, but the best-rated tax filing firm among them is Crescent Tax Filing which is capable of filing the taxes within the said time, it has also got other tax benefits that helps in saving the hard-earned money from getting into the fold of taxes.
When you file incorrect tax returns you are liable to attract notices/enquiries or even subject to auditing from the state income tax department or the IRS agency. Not all the online tax filing portals have the same amount of experience that the tax experts at Crescent Tax Filing have which they have accrued over the decades filing the taxes. So, you can be sure about your tax filing with Crescent Tax Filing.
Crescent Tax Filing is aware of the requirements of the taxpayers and has been extending services in tax consultations with 11 Quality Value Added Tax Services which are free of cost throughout the year. The best thing about these services is they can look into the tax returns filed from the previous years, look into it and also provide support of the tax experts to study the previously submitted taxes.
You can always save on your valuable time, hard-earned income you accrued and relieve your anxiety by simply signing on the website: Crescent Tax Filing, the moment you register with us you will be endowed to get accurate tax estimation, limitless tax consultations from the tax experts in house, available throughout the year with 11 value-added tax services which are worth $1200 and comes absolutely free.