Last Week to Work on Taxes
Do you have your taxes completed and filed yet? About 40% of Americans are still procrastinating!
When Jesus was asked about taxes, he said to render unto Caesar the things that are Caesar’s and to God the things that are God’s.
We pay taxes to honor and obey God.
If you haven’t filed, you’ve got one week to do it. Carve out some time and work carefully to avoid penalties and costly mistakes.
The ‘failure to file’ penalty is 5% of your unpaid taxes for each month your return is late – or up to 25% of your unpaid taxes.
And if you file but don’t pay, the IRS can charge a ‘failure-to-pay penalty’ of 1/2 % for each month you don’t pay – up to 25%, plus interest on the unpaid amount!
But if you pay at least 85% of the tax liability, the IRS may waive penalties. The penalties just aren’t worth it, so take the time to file or get some help to get them done on time.
- Avoid preparers who promise big refunds. Cheating may give you a larger refund, but you risk paying back taxes and jail time. Don’t cheat!
- Avoid the costly fees of tax refund advances or loans. It’s a danger for those who depend on the refund every year. Don’t!
Remember, refunds are basically interest-free loans you make to the federal government then wait for them to give it back!
You can reduce your return by adjusting your withholding taxes and increasing your monthly paycheck. This gives you the opportunity to steward more each month.
If you received a refund this year, I’d encourage you to use it wisely. Paying down your credit card debt is a great place to start. But if you have overwhelming credit card debt, I highly recommend you get in touch with Christian Credit Counselors. For more information call Crown at 800-722-1976 or online at crown.org/ccc