If you missed the April 15 tax deadline, file and pay your taxes immediately to avoid penalties and interest. The late filing penalty is 5% per month, while the late payment penalty is 0.5% per month. Interest is also charged based on current rates. File an accurate return even if you're missing some information, but don't guess or estimate. You have payment options like installment plans if you can't pay your balance in full.
Homeowners in 2023 are benefiting from a surprising shift in tax laws. Single homeowners can shield up to $250,000 and married couples can protect up to $500,000 of their profits from capital gains taxes when selling their primary residence, provided they meet specific IRS criteria. This exemption encourages homeownership and can save homeowners a significant amount in taxes.
To ensure prompt tax refunds, file a complete and correct tax return with information matching IRS records. Gather all necessary tax forms, including W-2s and 1099s. Verify your income and claim eligible deductions and credits, such as mortgage interest and tuition expenses. Review previous tax returns and consider life changes that may impact your return. Filing an accurate return initially is crucial to avoid delays from amended returns.
