INDIANAPOLIS — We are in the home stretch for the 2021 tax filing season and the deadline is Monday, April 18.
While there may a good reason as to why you haven't filed yet, the IRS and state need you to notify them properly.
If not, it can be an expensive mistake.
There's still time to file
With the tax deadline nearing, people are lining up outside of United Way’s Volunteer Income Tax Assistance locations.
"This is the first thing I did this morning," said one of the customers in line, "get up and come here and get my taxes done."
VITA is a nationwide program that offers free tax prep if you meet the income requirements. In the Indianapolis area, it's $66,000.
"I've done it on my own [taxes] a couple times," the customer added, "but this year, I wanted a little more help because I messed up last year."
If you need more time to prepare your return in order to avoid mistakes, you can file a six-month extension using the IRS Form 4868.
Any taxpayer can request one and the IRS doesn't care about the 'why.'
What they do care about is your owed taxes.
Extension or not, be prepared to pay your taxes
Rebecca Branson, a VITA site coordinator, said an extension is only more time to file, not pay.
"If you pay 90% of what you owe by the filing deadline of April 18, you can waive any penalty for not filing. Now, you still will be responsible for any interest on any balance due," Branson said.
To estimate what you might owe, you can use the IRS Withholding Estimator. When in doubt, it may be safer to overpay and reconcile later.
If you've contacted your employer multiple times about your W-2 with no success, Branson said you can call the IRS and ask for your wage and income tax transcript.
"Make sure you request an unmasked copy of your wage and income statement. To do that, you can't use the automated line. You have to wait and wait for an agent to come on at the IRS. It does take some time, but they are doing it. And those mail out usually in 10 to 14 days."
Branson added the IRS call is just your federal information.
To get the state's wage and income statement, go down to the Indiana Department of Revenue at 10 North Senate.
What if I do nothing?
If the federal government owes you a refund, they're not too worried about a late file.
But the state, Branson said, is a different story.
"For the state, you do have to file extension whether you owe or you get a refund. That's something some people don't understand that the state has different requirements than the Fed."
The federal extension form covers both the federal and state notice requirement.
If you owe money and don't file your return or an extension, that can be a pricey problem.
"You can owe both Failure to File penalties, Failure to Pay penalties and interest," Branson said.
Where to file for free
VITA at the John H. Boner Community Center is taking walk-ins through April 18 at 2236 E. 10th St. on the east side of Indianapolis.
Intake is on Mondays and Wednesdays from 10 a.m. to 6 p.m., but a second pickup and singing appointment are needed. Pick-up days are Tuesday at the same time and Saturday from 9 a.m. to 2 p.m. They are closed the other days of the week.
They will also be doing "Super Days" on Wednesday, April 13 and Saturday, April 16. On those days, they'll do the whole process, which includes intake, preparation, and signing the return on the same day.
When you file your return, don't forget your stimulus and child tax credit letters.
"The child tax letter is important, specifically if you filed married filing jointly last year. It's a little confusing because both you and your spouse would each receive a separate letter and both those letters have to be reported," Branson said.
Click here to find the United Way free tax preparation locations in Marion, Boone, Hendricks and Morgan counties.
All taxpayers, regardless of income, can file using the IRS's free file, too.