With the ongoing tax season coming to a close in less than two weeks, many taxpayers may be feeling under pressure to file their income tax returns. Usually, filing your taxes is a straightforward procedure, particularly if you are an employee. However, it becomes more complicated if you are a freelancer and do not have a consistent income, or if you receive income from federal programs, or if you have multiple sources of income. One group of individuals from this state is getting their tax deadline extended to November.
Who must file their taxes?
Many people find the tax system redundant, particularly if you are an employee, as your employer takes your tax owed out of your monthly salary. However, this amount of tax is not necessarily equal to the amount you owe the IRS. When you file your taxes during the tax season, what you are doing is filing to receive a refund in case you have overpaid your tax liability.
While not everyone gets a refund, it is important to file your taxes, as it is a federal requirement to do so. Additionally, not everyone has one income stream through an employer, and filing your taxes shows the IRS where you are receiving income from and if you have paid the required tax from that asset or income source. For this year, if you are under the age of 65 and have a gross income over $14,600, you must file a tax return.
If you earn below this threshold, you may still have to file your taxes. Individuals who are applying for certain tax credits need to file their taxes to prove to the IRS that they qualify to receive the credit based on their income status. Filing a tax return is, in essence, communication between you and the IRS highlighting all the income you have earned in one fiscal year, and whether or not you need a refund or tax credit, or pay more tax.
IRS extends tax deadline for this state
April 15, 2025, is the deadline for this year’s tax season. However, you can apply for an extension through the IRS website to extend the deadline to October 15. If you make a mistake, you are also allowed to amend your return past this deadline. Additionally, the IR will contact you if there are mistakes in your return that need to be corrected.
If you are late with filing your taxes, you receive a Failure to File penalty. This penalty amounts to 5% of the unpaid taxes for each month your return is late, with a maximum of 25% of your unpaid taxes. If you are late in filing your taxes, always file regardless to prevent penalties and interest from racking up beyond what you can afford to pay or, at an extreme, prevent being arrested for failure to pay your taxes.
However, in an IRS official statement, individuals in West Virginia who have been affected by the recent severe weather conditions from February 15 of this year have had their tax deadline extended to November 3. It is important to note, however, that this deadline does not extend to all citizens of West Virginia, but only to those households that are located in the affected areas.
Taxes to be banned for Social Security?
While there has not been any significant change to the procedures of filing income tax, there has been debate surrounding the taxes of Social Security. President Trump has suggested that taxes on your Social Security income should be banned. Currently, the IRS can tax 85% of your Social Security tax within specific parameters. However, it has been noted that eliminating this tax would only benefit top earners who are receiving above $5 million in income, which is the top 0.1% of earners.
