Tax season is upon us, and many are wondering whether they need to file or if there are options available to delay payment or filing. Kirsten Johnson, a tax expert, sheds light on the matter.

Do You Have to File?

Johnson highlights that whether you need to file depends on various factors, including your income, filing status, and age. Generally, if your income exceeds a certain threshold, you are required to file a tax return.

Understanding Thresholds

For the tax year 2021, the filing thresholds were as follows:

• Single filers under 65: $12,550
• Single filers 65 or older: $14,250
• Married filing jointly under 65: $25,100
• Married filing jointly, one spouse 65 or older: $26,450
• Married filing jointly, both spouses 65 or older: $27,800

Options to Delay Payment or Filing

Johnson emphasizes that if you can’t file by the deadline, you should request an extension. This gives you an additional six months to file, but it doesn’t extend the time to pay your taxes. However, Johnson points out that if you can’t pay the full amount owed, it’s still crucial to file on time to avoid penalties.

IRS Installment Plans

Another option Johnson mentions is setting up an installment plan with the IRS if you can’t pay your tax bill in full. This allows you to pay off your tax debt over time, but there may be fees and interest associated with this option.

Qualified Offer in Compromise

For those who are struggling financially, Johnson suggests exploring a Qualified Offer in Compromise (QOIC). This allows taxpayers to settle their tax debt for less than the full amount owed if they meet certain criteria.

Seeking Professional Assistance

Johnson advises seeking help from a qualified tax professional if you’re unsure about your tax situation or need assistance exploring your options. They can provide personalized guidance based on your individual circumstances.

Conclusion: Stay Informed and Take Action

Navigating tax season can be daunting, but with the right information and assistance, you can make informed decisions about filing your taxes and managing any outstanding tax debt. Stay informed, explore your options, and take action to ensure you’re meeting your tax obligations responsibly. Download The Local News App for more insightful articles and stay updated on important news affecting your community.

Source