We only have 2 weeks until your federal individual tax return is due on April 15th. You have until April 30th to file your Iowa individual tax return.
April 15th and April 30th are also the due dates for the first quarter estimated tax payments.
If you don’t have everything you need to prepare and file your individual tax return, it is important to extend the federal return by April 15th.
If any tax is due, it must be paid by April 15th. An extension of time to file your return does not extend the time to pay the tax.
If you fail to file your return by April 15th (or don’t obtain the six-month extension) for each month or fraction of a month the return is late, you must pay a penalty equal to 5% of the net tax liability due for the year with a cap of 25%.
You will also face a second penalty if you fail to pay your balance due by that date. A penalty of 0.5% will be added to the tax due for each month or fraction of a month the tax is outstanding, with the total penalty once again capped at 25%.
April 15th is also the due date for any IRA contributions, self-employed retirement plan contributions and HSA contributions.
In honor of the end of tax season, Tax Tip Tuesday will be taking a short break. We will resume on April 22nd with a new edition.
Disclaimer: The items included in the Tax Tip Tuesday Video Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation. IRS Circular 230 disclosure: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. federal tax advise contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.