October tax extension deadline fast approaching October tax extension deadline fast approaching

The deadline for tax returns for 2020 returns is approaching, but there is still time to avoid additional penalties and fees.

Filers have until October 15 to file an extended return, originally on May 17.

Those who have applied for an extension can waive the late penalty by sending a refund by October 15. Otherwise, failure to pay the penalty means 5% tax per month, limited to 25%.

There are usually no file-to-file penalties for refunds, but taxpayers are likely to lose their money by waiting too long to file.

Taxpayers can use online filing options, such as IRS free files, to send returns.

In addition, states may have different deadlines for tax extensions, so filers should double check the details through their state tax website.

More time to file
Although the October 15 deadline applies to most people, there are exceptions for some taxpayers, according to the IRS.

Members of the military or those serving in the military usually have 180 days to leave the area to file returns and pay taxes.

And in federally declared disaster areas, such as Hurricane Ida, victims may also have more time.

Pay taxes
Gives more time to file an extension, yet taxpayers have to pay the overdue tax from the original deadline.

The penalty for failure is 0.5% of unpaid taxes per month, with a maximum fee of 25%, without paying the balance.

Filers can pay taxes by mail, online, by phone, or through the IRS2Go mobile app.

Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No The Money Circles journalist was involved in the writing and production of this article.

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