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April 15th Is Tax Day: Information For Anyone Needing An Extension

It’s that time of year again; April 15th marks the end date to pay 2017 income tax. If you miss this date, you will be subject to a tax penalty—fee. But you do have a chance to file for tax extension, and a tax extension will allow a person a six-month-long period (Given an extension, October 15th will be the new date at which 2017 income tax filing will be due) in which they can file and avoid the tax penalty. You can get the extension on the IRS website here: www.irs.gov. And the deadline to request an extension from the IRS is April 17th, which allows people a few extra days, post Tax Day, to get their income tax affairs in order. There are special rules, however, for individuals who serve abroad in a combat zone or, what the IRS calls, a hazardous duty area. People who live outside the United States are also given certain consideration.

The form to receive an extension is rather short and simple to complete, and, usually, tax extensions are provided automatically. Also, if you cannot afford to immediately pay your income tax, it’s best to either file on or before Tax Day and then sort out the particulars of the required income tax payment with the IRS—the IRS does offer several payment plans—or file for an extension by the 17th of April. To not have filed your taxes will end up costing you considerably more in the long run than an IRS interest rate or the percentage penalty for a delinquent payment (remember there is no penalty for an extension, as long as the income tax is filed on or before the 15th of October).

If you have any questions as to how to communicate with the IRS about your financial situation, how to handle an extension, or would like advice on how to get your 2017 income tax filed, and then paid, then call the experts at Practical Taxes today.

Not everyone is a first-rate financial planner, and studies show that people today are working well past, what used to be, the average age of retirement—now, whether that is the cause of poor financial planning, or just the measure of our country’s current economic circumstances is debatable. But, what we do know is that almost all of us, regardless of how much we’ve saved for our financial futures, could always save more. This is especially evident for those of us running small businesses, in charge of our own retirements, and every dollar we make needs to be put to good use. So, how do we do it? How do we become better financial planners? Here are a few helpful tips.

Know your goal and stick to it

Even if you’re a twenty-something or thirty-something, know that your end goal is to retire as comfortably as you are able. This may mean setting up retirement accounts early, and remembering to always put money into your retirement account. When you’re young, consider short-term goals for financial independence: consider trying to pay down your mortgage loan, ridding yourself of those student loans, so that money won’t be adjusted further, with more interest added, and the amount you were using to pay down your loans can then be added to the amount you pay into your retirement fund every month.

Try and find ways to manage your expenses, and know where you’re spending your hard-earned money. Obviously if you discover an abundance of overspending in a certain area, curtail the spending and stay on track with your financial goals. Create a budget, something to be stuck to weekly, maybe monthly. A budget is a constant reminder of how to best keep responsible for our money.

Lastly, although there are so many ways in which you can focus your energies for retirements, these were just a few important tips, consider speaking with your accountant as to your spending, how you’re affected by retirement plans and the amounts you are paying into your retirements. If you own a small business, an accountant can be one of your most important assets.

If you have any questions, call Practical Taxes today, and remember that it’s tax season, with just a little over a month left to file those income taxes.

Practical Taxes

Practical Taxes is a full service accounting firm in Billings, Montana. We can help you get the most from your taxes, and make sure that you will get the maximum refund every year. But we don’t just do taxes! We can help with your bookkeeping, payroll, bank reconciliation, budgeting, and more. Give us a call at 406-894-2090 to learn more.