Posted on Apr 17th, 2022

Federal and state tax returns are due April 18th. A Willimantic tax preparer says costs can accrue if late.

Federal and state tax returns are due by the end of Monday. Willimantic tax preparer Sheridan Vernon says the last week has been incredibly busy as people look to file theirs and avoid late fees.

“It’s been busy trying to get the last few returns done. Get ahold of people, get the information I need,” he said. “For me, this has been the busiest year ever.”

He says tax returns are more complicated now because of COVID-19. Whether stimulus checks or advanced child tax credits, these were funds not seen before the pandemic.

If someone doesn’t file on time, they can get an extension through mid-October. However, Vernon says there will be a cost that comes with that.

“After one year, you owe about 35% additional besides tax,” he said.

The extension is for the time only, not if someone owes money in taxes. In Connecticut, there is a 10% penalty if not filed on time if someone owes money to the state, that starts Tuesday.

He said there can be late fees, interest, and possible late payment penalties for not filing on time.

The most important thing, he says, is to pay the state, even if it’s not in full. Payment plans both federally and for the state are possible. If more money is paid, the remaining money will be refunded or put towards the 2022 tax returns.

There are also COVID-19 aspects of tax returns he says to watch out for. Advanced child tax credits went out to some. If both parents received that money, they need to file that jointly or else it’s done incorrectly.

For divorced parents, if one claimed the child on their 2020 tax returns and received the credit, it may have to be repaid if the other parent claims them this year. That’s because they may receive the payment in full.

If someone owes the state money but doesn’t file because of that, he said it will not go unnoticed. If they look at the federal filing, they can get that information from income.

Those looking to get an extension with the IRS can click here. If an extension is needed in Connecticut, click here.

Original post: https://www.fox61.com/article/news/local/file-tax-returns-by-end-of-monday-to-avoid-late-fees/520-fb695d98-7eb8-4796-936d-f8b5f0e0cb50

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