Buffalo, NY (WBEN) With the tax filing deadline Tuesday, the Tax Lady Esther Gulyas says she has one important piece of advice: be prepared to file, and if you think you owe, send a payment.
"No matter what, you have to file a return, either an extension or the real thing," says Gulyas of EG Tax. She adds, if you owe, don't forget the payment. "Don't kid yourself thinking you don't have to pay the liability, because that's not the case. The only way for the extension to save you penalties is to pay the taxes with the extension," warns Gulyas. She says you face penalties and interest if you file without payment.
Gulyas says filing an extension is making a mock tax return, She cites a couple of examples from clients. "She knows what her figures are for her w2 but her employer didn't send it, so she can't file until she gets her w2 so that that's why this lady is filing an extension. Another person is waiting on a K1 that's coming from their their attorney, so it could be a myriad of reasons why the paperwork can't go in," says Gulyas. Again, the money has to be sent.
Gulyas says snowbirds who spent time in Florida this winter will have to file by tomorrow at midnight. "You may be down there on vacation and you better take care of business if you have the liability, but the reason the people in Florida got an extension was because of the hurricane," says Gulyas.
What if you find out that you have a balance due? Gulyas says if you qualify for an IRA, you can use it to mitigate your tax liability. "You move the money from column A to Column B in the bank into a traditional IRA, and in many cases, it saves the day for for taxpayers," explains Gulyas. She says you can open that IRA up until Tuesday night as well and use it for your 2024 tax return as an expense, up to $8,000 if you're 50 or older, husband and wife. She says if you're both working, you can do $16,000.
