Bonus: Tick Tock—Beat the Tax Deadline Before It Bites

[00:00:00] Speaker A: Filing taxes isn't fun, but if you're a procrastinator, you'd better get to it. I'm Matt McClure with the Retirement Radio Network, powered by Amerilife. The tax filing deadline is just around the corner on April 15th. Mark Steber is chief tax officer at Jackson Hewitt. [00:00:15] Speaker B: The deadline is a real deadline. And by deadline I mean there are teeth, penalties and other consequences for failing to observe it. There's a failure to file penalty, which is exactly as it says, a 25% of any taxes that you owe for failing to file. By the deadline you got, do something, file a tax return or file an extension. [00:00:34] Speaker A: Steber says one of the biggest misconceptions is that if you do file for an extension, you may think you don't have to pay the IRS a penny right now, but that is not the case. [00:00:43] Speaker B: It's a six month extension. You file the form 4868 or you mail it in or file electronically or get a pro to help you with it. But you file that and you immediately stop or at least put at the back door the failure to file penalty. [00:00:57] Speaker A: But there are other penalties that still may apply. [00:01:00] Speaker B: There's a failure failure to pay penalty separate from the failure to file. It's another separate 25% penalty on any balance that you might owe, plus interest, as is on the failure to file penalty, 25% plus interest. And then if you owed money throughout the year because you had side hustle or retirement income that didn't have withholding or you had crypto gains, you might have an underpayment penalty separate from the other two. [00:01:24] Speaker A: If you live in an area affected by a natural disaster last year, you could get some extra time. But Steber says more importantly than that. [00:01:31] Speaker B: Time extension, which is good, should are the tax deductibility elements that are available as it relates to a loss on a disaster. So if you've actually suffered and you're in a federally declared disaster, which is just about all of Florida and all of North Carolina, among other areas, you have a lot more options and a lot more tools in your tax toolbox, the least of which is a tax deduction for an economic loss. [00:01:53] Speaker A: And if you feel overwhelmed by the process, get help from a professional. [00:01:56] Speaker B: There's lots of people with extra hours, extra staffing, but you do need to take action. Find those documents, get to your favorite trusted, branded, the local tax professionals and simply get your taxes filed. It's the smart thing to do at this time of year. [00:02:10] Speaker A: If you don't, Uncle Sam has some hefty penalties waiting for you. With the Retirement Radio Network, powered by ameraLife, I'm Matt McClure.