Tax season is upon us, prompting individuals and businesses alike to assess their financial obligations. Understanding filing requirements and available options for delaying payment or filing is crucial. Here’s what you need to know.

Filing Requirements

Individuals

• The IRS requires individuals to file a tax return if their income exceeds certain thresholds.
• For the tax year 2021, single filers under 65 must file if their income is at least $12,550, while those 65 and older must file if their income is $14,250 or more.
• Married couples filing jointly with both spouses under 65 must file if their combined income is $25,100 or higher; for couples both 65 or older, the threshold is $27,400.

Businesses

• Businesses, including sole proprietors, partnerships, and corporations, have different filing requirements based on their structure and income.
• For example, sole proprietors must report business income on their personal tax return (Form 1040) if their net earnings exceed $400.

Options for Delaying Payment or Filing

Payment Extension

• Taxpayers who need more time to pay can request a payment extension from the IRS.
• An extension allows individuals and businesses to delay payment of any taxes owed until a later date, typically October 15th.
• However, it’s essential to note that an extension to file is not an extension to pay; taxes owed are still due by the original filing deadline.

Installment Agreement

• If unable to pay taxes in full, individuals and businesses may qualify for an installment agreement.
• This arrangement allows taxpayers to pay their tax debt in monthly installments over time.
• To qualify, taxpayers must meet certain criteria and agree to comply with IRS terms and conditions.

Kirsten Johnson’s Perspective

Kirsten Johnson, a tax professional at NEWS.ORG 15, emphasizes the importance of timely tax compliance. She advises taxpayers to assess their situations carefully and take advantage of available resources.

Johnson notes that while extensions and installment agreements offer relief, they may incur additional fees and interest. Therefore, it’s crucial to explore all options and communicate with the IRS proactively.

Conclusion: Stay Informed and Act Promptly

As tax season unfolds, individuals and businesses should stay informed about filing requirements and available options for delaying payment or filing. Seeking assistance from tax professionals like Kirsten Johnson can provide valuable guidance in navigating complex tax matters. Remember to download The Local News App for timely updates and expert insights on tax-related news and more.

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