The deadline to file a tax return has come and gone. Did you miss it? Depending on your situation that could be cause for an “oops” or it could mean you need to take action ASAP to avoid owing any more to the IRS.
If you missed the tax deadline but are due a refund there is no penalty. The government is happy to hold on to your money, interest-free, for a bit longer. In fact, you have up to three years from the filing deadline to complete a return and get that refund.
Don’t delay too long though. This is especially true if you get a Premium Tax Credit to help pay for insurance. Failure to file a tax return could jeopardize that credit, so it’s better to act soon. You can still make an appointment at an H&R Block office or start online.
If you owe taxes and missed the deadline, there’s good news and bad news.
Bad news: You can’t file an extension at this point.
More bad news: you will be charged failure-to-file and failure-to-pay penalties for missing the deadline.
Good news: You can still file.
Ok, that might not seem like great news. How about this: The sooner you file, the less you’ll pay in penalties.
Read more about exactly how those penalties are calculated. Generally, the IRS charges them on a monthly basis, but they can be prorated for a portion of a month. So it’s a good idea to file as soon as possible to limit the charges you may incur. After 60 days pass, you will incur an established minimum penalty that is the lesser of $205 or 100% of the unpaid tax you owe.
So there is a simple solution: Get that tax return filed and make it a priority now. Learn more about how to file back tax returns and how to reduce penalties and interest if you qualify. Get help from a trusted IRS expert.
Start filing online for free.
Out of more than 143 million taxpayers, you may think the IRS has enough to worry about and won't notice if you pay your taxes late or fail to pay at all.
But no matter how busy the IRS gets during tax season, you will be penalized if you don't pay taxes. Interest and penalties will begin to accrue on the outstanding amounts when you don't pay what you owe by the due date.
So if you anticipate not having your taxes done on time, here's what could possibly happen.
What happens if you don't file your taxes on time
If a significant amount of time passes since the tax deadline, and you owe the IRS money, it could potentially seize a portion of your wages until the debt is settled.
If you're expecting a refund, you risk losing the money the government owes you. Taxpayers must file within three years of the return due date, or else they forfeit any cash the IRS owes them. The same rule applies to claim tax credits such as the Earned Income Credit (EIC).
In 2022, the deadline to file your 2021 taxes is Apr. 18. If you haven't already filed, you should e-file today using an online tax filing program like TurboTax or H&R Block.
TurboTax
On TurboTax's secure site
Cost
Costs may vary depending on the plan selected
Free version
For simple tax returns only. See if you qualify.
Mobile app
Yes
Live support
Yes, costs extra
Better Business Bureau rating
A+
Terms apply.
If you're concerned your tax bill may be steep, you can set up a payment plan with the IRS. The service fees for setting up tax payment plans range from $0 to $149 and will include interest on the balance until the payment is paid in full. Plus, there is a non-payment penalty, up to a maximum of 25% of the unpaid tax amount, for paying late. You can learn more about IRS payment plans on its website.
Other options to pay your taxes over time
U.S. Bank Visa® Platinum Card
Rewards
None
Welcome bonus
None
Annual fee
$0
Intro APR
0% for the first 18 billing cycles on balance transfers and purchases
Regular APR
17.49% - 27.49% (Variable)
Balance transfer fee
Either 3% of the amount of each transfer or $5 minimum, whichever is greater
Foreign transaction fee
2% to 3%
Credit needed
Excellent/Good
Pros
- 20 billing cycles of no interest on balance transfers and purchases
- No annual fee
- Cell phone protection plan
Cons
- No rewards program
- 2% to 3% foreign transaction fee
- Balances must be transferred within 60 days from account opening
Citi® Double Cash Card
Rewards
2% cash back: 1% on all eligible purchases and an additional 1% after you pay your credit card bill
Welcome bonus
For a limited time, earn $200 cash back after spending $1,500 on purchases in the first 6 months of account opening.
Annual fee
$0
Intro APR
0% for the first 18 months on balance transfers; N/A for purchases
Regular APR
16.99% - 26.99% variable
Balance transfer fee
For balance transfers completed within 4 months of account opening, an intro balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a balance transfer fee of 5% of each transfer ($5 minimum) applies
Foreign transaction fee
3%
Credit needed
Good/Excellent
Pros
- 2% cash back on all eligible purchases
- Simple cash-back program that doesn't require activation or spending caps
- One of the longest intro periods for balance transfers at 18 months
Cons
- 3% fee charged on purchases made outside the U.S.
- Estimated rewards earned after 1 year: $443
- Estimated rewards earned after 5 years: $2,213
Amex EveryDay® Credit Card
Information about the Amex EveryDay® Credit Card has been collected independently by CNBC and has not been reviewed or provided by the issuer of the card prior to publication.
Rewards
2X Membership Rewards® points at U.S. supermarkets on up to $6,000 per year in purchases (then 1X), 1X Membership Rewards® points per dollar spent on all other purchases
Welcome bonus
Earn 10,000 Membership Rewards® points after you make $2,000 in purchases in your first 6 months of card membership
Annual fee
$0
Intro APR
0% for the first 15 months on purchases from the date of account opening, N/A for balance transfers
Regular APR
15.99% - 26.99% variable
Balance transfer fee
N/A
Foreign transaction fee
2.7%
Credit needed
Excellent/Good
Pros
- No annual fee
- Competitive intro period on purchases
- 20% extra point bonus when you make 20 or more purchases in a billing period
Cons
- 2.7% foreign transaction fee
Bottom line
Paying your taxes on time is an essential part of keeping your personal finances in a healthy spot. Avoiding paying taxes can put you in a tough bind, and worst case scenario, end up in criminal charges.
So before the Apr. 18 deadline approaches this year, be sure to file your taxes on time, and if needed — file for an extension.
Read more
For rates and fees for the Amex EveryDay® Credit Card, click here
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.