Tax tips for Hoosiers
So far, approximately 2 million Hoosier taxpayers have already filed their annual tax returns. Some, however, have waited until the last few weeks.
What if you owe taxes?
The Indiana Department of Revenue has come up with a two-part approach designed to help Indiana taxpayers filing at the last minute.
First, be proactive. Be sure you file a tax return by April 15 even if you cannot pay the tax due. Filing a tax return will keep you on the right track.
Second, if you cannot pay the full amount due up front, you have two options:
- Send in as much as you can when you file your tax return. Penalty and interest will be due on the unpaid amount, so the more you pay when you file, the less penalty and interest you will owe. The department will send you a bill within a few weeks of your filing with the remaining amount due. The best way to pay your tax due is using the secure online application ePay.
- If you are just unable to pay, then send in your tax return with no payment. The department will send you a bill within a few weeks with the remaining amount due plus penalty and interest on the full amount due.
If you cannot pay the full amount due when the bill arrives, you may be eligible for a payment plan. If you owe more than $100 and can pay at least 20 percent down, you will qualify for a payment plan (businesses will qualify if they owe more than $500, and can pay at least 20 percent down).
After you receive the bill, you can set up your payment plan online or contact the department with your request (addresses and phone numbers are on the back of the bill). Once your plan is approved, you can mail in payments or pay online.
How to File?
Now, about filing your tax return – the easiest way is to file electronically. Indiana offers a free online filing system called INfreefile for those who qualify. Go to Free File to see if you are eligible to complete your state and federal taxes online for free. At least 1 million Hoosiers qualify for INfreefile and last year more than 118,000 Hoosier taxpayers filed for free using INfreefile.
Filing your tax return and taking advantage of options to pay your tax due will get you headed in the right direction.