April 15th has traditionally been the last day of the year to file taxes. However, due to Emancipation Day falling on April 15th most state and federal individual income taxes can be filed by April 18th. There are many solutions for filing taxes on time. There are online tax programs that will allow for filing taxes in the comfort of home. However, filers should always attempt to pay their taxes by the deadline. Tax payers need to be aware that a variety of penalties can be issued to those who do not file on time.
Life Insurance Proceeds Life insurance proceeds that are paid to you as a result of the death of an insured individual are not taxable unless the policy is passed on to you at a particular cost. This happens even if the proceeds were paid under an accident, health insurance policy, or a donation. On the other hand, interest income obtained because of life insurance may be taxed. Make sure to find out which category the proceeds fall under.
Child Support Payments Child support is not taxable to the recipient. Due to this fact, the child support paid by a person is also not deducted from the supporter's tax return. However, maintenance payments are taxable to the recipient.
Scholarships and Fellowships The total sum obtained from a scholarship or fellowship by an individual seeking a college degree is not taxable. This happens only if the money is to be utilized strictly for tuition and the fee paid to enroll to a particular institution, activity fees, books, supplies, and equipment. However, room and board fees included will be taxable (guess it's the price you pay for the dormitory "perks" like cleaning services, cable TV, and high speed internet).
Computer tax programs provide a solution for those with returns that will not be ready to be filed by April 18th. The IRS allows a 6-month extension. Online services can be used to file for the 6-month tax extension. Tax payers should be aware that even though they are filing for an extension they will still need to pay on time.
This date is usually April 15th. However, due to the Emancipation Day holiday the date has already been extended to April 18th. Extension filers must estimate and pay the amount they will owe when filing for the extension.
Tax payers should also be aware that if they do not send at least 90% of the estimated payment they will be charged a late payment penalty. Exceptions will be made for US citizens or resident aliens whose main place of work is abroad (outside of the United States and Puerto Rico).
Those who are overseas because they serve in the military also will not have to file for the extension. These filers have the extra two months to file without requesting the extension. Although there will usually be a charge, this may be the best option for some.
Life Insurance Proceeds Life insurance proceeds that are paid to you as a result of the death of an insured individual are not taxable unless the policy is passed on to you at a particular cost. This happens even if the proceeds were paid under an accident, health insurance policy, or a donation. On the other hand, interest income obtained because of life insurance may be taxed. Make sure to find out which category the proceeds fall under.
Child Support Payments Child support is not taxable to the recipient. Due to this fact, the child support paid by a person is also not deducted from the supporter's tax return. However, maintenance payments are taxable to the recipient.
Scholarships and Fellowships The total sum obtained from a scholarship or fellowship by an individual seeking a college degree is not taxable. This happens only if the money is to be utilized strictly for tuition and the fee paid to enroll to a particular institution, activity fees, books, supplies, and equipment. However, room and board fees included will be taxable (guess it's the price you pay for the dormitory "perks" like cleaning services, cable TV, and high speed internet).
Computer tax programs provide a solution for those with returns that will not be ready to be filed by April 18th. The IRS allows a 6-month extension. Online services can be used to file for the 6-month tax extension. Tax payers should be aware that even though they are filing for an extension they will still need to pay on time.
This date is usually April 15th. However, due to the Emancipation Day holiday the date has already been extended to April 18th. Extension filers must estimate and pay the amount they will owe when filing for the extension.
Tax payers should also be aware that if they do not send at least 90% of the estimated payment they will be charged a late payment penalty. Exceptions will be made for US citizens or resident aliens whose main place of work is abroad (outside of the United States and Puerto Rico).
Those who are overseas because they serve in the military also will not have to file for the extension. These filers have the extra two months to file without requesting the extension. Although there will usually be a charge, this may be the best option for some.
About the Author:
Harris Smith is a writer on personal finance education. Her article tackles the pros and cons of home equity line of credit . Clear Debt Now offers links to Debt Consolidation and consolidation programs in your area.