Many people file a tax extension each year, in spite of the fact that they are due a refund. Sometimes they file a second extension and still do not get their taxes done in time.
The thinking is likely that they are not in a hurry for the money and want to get the filing done correctly. For others, they are not sure if they are getting a refund or not, so they put off doing their taxes indefinitely.
This year, there’s another reason to get your taxes filed on time…
In addition to causing you possible trouble with the IRS, filing a late tax return this year may mean you lose the chance to partake in the President’s economic stimulus package.
The rebate checks will give $600 to individuals and up to $1,800 for a family with children.
Even if you do not make enough money to get a return, you will want to go ahead and file a return because tax rebates are only going to those who file their returns within a certain amount of time
In a “conference call with reporters, acting Internal Revenue Service Commissioner Linda Stiff said the IRS will announce a cutoff date later this year for processing stimulus checks.” Source
While you might think you have all year to file your taxes, the truth is, if you want to receive a stimulus rebate check, you need to act fast. In fact, you will not see your rebate check until after you have filed your income tax return.
Other reasons to file your income taxes on time:
- You will be charged late filing penalties if it turns out you owe the government income taxes.
- If you are due a refund, the government is gaining interest from your money when you could have it in an account gaining interest for yourself.
- You can eliminate a great deal of stress and anxiety by getting your taxes done on time.
I have been a certified tightwad striving for financial freedom since I became pregnant with my first child — and I decided to find a way to stay home with him full-time. I enjoy sharing my personal experiences in my journey back to financial health and planning for a future — which will include sending 2 kids to college and early retirement.