Tax Day: What you need to know to avoid penalties

IRS pushed tax deadline back months to July 15th due to coronavirus

ROANOKE, Va. – Wednesday, July 15 is Tax Day. Months ago, the IRS extended the deadline back three months because of the coronavirus pandemic.

If you’re a procrastinator and this deadline snuck up on you, Kembel Tax Services in Roanoke has advice for you.

Owner David Kembel suggests if you haven’t already, reach out to your tax accountant.

If you need more time you have to get an extension by Wednesday to avoid paying penalties with interest. That extension will push your deadline to October 15th.

Kembel said, “The biggest thing they need to understand is the extension only extends the paperwork, it only extends a tax return. It does not extend paying so all of our regular clients we recommend they send something in before Wednesday.”

Kembel said your tax accountant should be able to give you an idea of how much you owe but a good place to start is whatever you owed last year.

If you end up paying the IRS too much, once you file your taxes you’ll get a refund.

The deadline wasn’t the only way tax filing is changing because of the coronavirus.

Kembel explained since many are in financially rough times, this year if you’re under the age of 59 you can withdraw up to $100,000 out of your retirement account without penalties, but you have to pay it back within three years.

Another change to consider is for next year’s tax season’s charitable deductions.

“So if you take the standard deduction, if you don’t have enough mortgage interest, real estate taxes, charity deductions to itemize then you take standard deduction now the IRS is saying we’ll give you up to $300 in cash that means cash and check you can just write that off,” said Kembel.

He also mentions married couples can write off $600, but you can’t take that option and itemize it’s one or the other.

For more information on Tax Day, click here.

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