Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. This series is intended to show taxpayers that a tax extension is valuable because it saves individuals and/or their businesses time, stress, and even money.
Here’s reason #7: unemployment has made your life more complicated tax-wise and you’re not sure what that means for taxes.
Unfortunately for a lot of us (somewhere around 8-10% to be more accurate), unemployment is a very recent reality of life. So many people are filing their first tax return as someone that’s unemployed. Others are filing having received unemployment benefits at some point in the last year.
Most of us don’t have any idea how either scenario affects our tax returns. And for that reason it’s wise to take advantage of the extra 6 months a tax extension gives you to figure things out. Tax laws are complicated enough. When something like unemployment further complicates your life, why not take advantage of more time if the IRS is going to give it to you?
Whether you are new to tax extensions or not, remember that filing a tax extension does not give you more time to pay what you owe the government or face the possibility of penalties and interest. You still need to make your payment by midnight on April 15.
Ever filed a tax extension before? Thinking about filing one this year? Drop me a note in the comment section below.
