Are you one of those 15 million taxpayers who have filed for an extension to their tax filing deadline? If yes, then the clock is ticking, and you need to clear your dues before 15th October 2019 to avoid some steep tax penalties.
The deadline for clearing your 2018 federal income tax returns is closing-in by the day, and we are here to tell you all your options.
How can you clear your 2018 federal income tax dues?
For those ready to pay you can use any of the e-filings options or the IRS Free File to clear your tax dues. We suggest you e-file your tax returns as it is easy, safe, and carries no room for any mistakes. Your e-filing options include getting your returns filed through: –
- Using the services of Volunteer Income Tax Assistant or Tax Counseling for the Elderly site
- Buying and using commercial software
- Approaching an authorized e-file provider and tax professionals like us
Taxpayers who can further avail an extension on the tax-payment deadline
The IRS has given an option to some taxpayers to avail of a further extended deadline for payment of their 2019 tax returns. Such taxpayers include: –
- Family members of military personnel or soldiers serving in combat zones. Such taxpayers are given a 180-day timeline to clear their tax dues. The timeline starts once they leave the combat zone.
- Taxpayers resident of federally declared disaster zones.
What is the new Form 1040?
Those of you who are yet to file the 2018 federal income tax returns should be aware of the updates to the Form 1040. The IRS has made a few tweaks and consolidated the Forms 1040, 1040A, and 1040-EZ into one holistic form. If required, taxpayers can add schedules to this form..
If you have planned to e-file, then you can go ahead with how you filed your returns in the previous years. With the introduction of the new form, you may expect the tax filing process to become seamless and less time-consuming.
What are the available payment options?
The following are the payment options available to file your 2018 federal income tax returns: –
IRS Direct Pay
You may use the IRS Direct Pay to clear your tax bills and quarterly estimated tax payments. The IRS Direct Pay service is free and allows you to make a secure payment with no hassle. You can make payments directly from your checking or savings account by paying any additional services or portal charges.
Debit Card or Credit Card
You may clear your tax dues using your debit or credit card. The IRS does not charge any extra service charges on payments made through such cards. But the service provider may charge you some additional amount to process this payment.
Online Payment Agreement
You can also set-up a free payment plan of up to 120 days without any application fee. Such an online payment agreement is available to eligible taxpayers. You can check your eligibility on the IRS website or approach your tax expert to help you know your eligibility and set-up such a plan.
Electronic Federal Tax Payment System
Electronic Fund Withdrawal (Available while e-filing)
IRS2Go Mobile App
Check or Money order (Payment to be addressed to US State Treasury)
How can you see the current status of your return or tax dues?
You can have access to all your federal income tax information by registering on the IRS website at IRS.gov/account. Before creating this account, ensure to go through the ‘Secure Access: How to Register for Certain Online Self-Help Tools’ to be aware of all the prerequisites to verify your identity on the IRS website. With so many tax frauds on the rise, verifying the taxpayer’s identity is given the utmost importance.
By registering and logging in to this account, you can gain access to information like your due tax payments, payment history, tax transcripts. You can also pay your 2018 federal income tax return by logging into this account.
Do a pay-checkup
If you haven’t yet, then waste no time and do a pay-checkup before reaching the tax deadline of 15th October 2019. By doing this pay-checkup, you can double-check the correct amount of withholding to be deducted from your paycheck. You can review if your employer is deducting the right amount as per the latest tax reforms. You can calculate this amount by using the Tax Withholding Calculator. If there are any updates required, then you may adjust such withholding amount during the year’s last quarter.
Conducting this pay-checkup will help you to calculate the right amount of your withholding and help ease the filing of your 2019 tax returns. The tool will help you to compare the estimate with your current withholding. You can use such a comparative statement to discuss any changes in the amount with your employer.
Ensure to keep your 2018 tax returns handy while using this tool. It would require the information mentioned in your tax return to calculate the estimate of your income, deductions, adjustments, or credits for 2019.
The Bottom Line
As the deadline is close, you have got to take some quick action on your 2018 returns. Prompt response will enable you to avoid hefty tax penalties or interest on any delay beyond the deadline of 15th October. As discussed in the article, there are a few exceptions to this deadline. But still, if your financial situation is not allowing you to file your returns yet on time, then there might be some possibilities that can be considered as per your situation and eligibility. To avail expert tax advice and pay your tax dues without any hassle, you can contact the MyTaxFiler experts and gain insight into your tax situation.