Tipsy Tuesday (Tip #210)

Only 6 days left until tax day...

Tip #210

File on time, even if you owe and can't pay.

According to The Motley Fool, "Many people figure that if they don't have the money to pay their taxes, there's no point in bothering to file their return. But if you don't file, the IRS will charge you much larger penalties than if you file but don't pay. Specifically, the penalty for not filing a return is 5% of the amount of tax due for every month that you're late in filing. But if you file and don't pay, the penalty is far smaller: just 0.5% of your outstanding tax bill for every month. In other words, if you file, you can save 90% on penalties even if you can't pay."

So, what about you, do you owe or does Uncle Sam owe you? If you got a refund, are you splurging or saving?

P.S. If you are a stress eater, Cinnabon is giving away free Cinnabon bites on tax day (from 6-8pm), so eat up!

**Alright now, I'm talking tips, head over to see what Impulsive and Shawn are talking about on Talk to us Tuesday!**


Stacy Uncorked said...

Our accountant files an extension every year (on time, of course!) and then files the actual returns in the fall - that always works out well, because then any refund is perfect timing for Christmas. ;)

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Jill said...

Our tax day isn't until the end of April, but I've got all my stuff in to the accountant already! Phewf! Now if only I could get me some free Cinnabon bites up here, that would just make it perfect. Wait! No! I don't need 'em! LOL!

Impulsive Addict said...

We think we OWE this year! Last year we got back an amazing amount of cha-ching but our CPA told us we'll owe this year! WTH? I had another kid!!! Stupid IRS.

Impulsive Addict said...

Oh, and...Thanks for linking up with Shawn. I haven't opened my laptop since Wed. Commenting from my iPhone is NOT ideal but its what I can do for now! The boxes are thinning out!! Woo hoo!

Emmy said...

We got a refund--already got it more than a month ago and already spent most of it.

Oh and I got the prize package in the mail yesterday, thank you! The chocolate after a week of being sick or dealing with sick people was so so timely and perfect!!

Sarah Shumate said...

I wish there were some kind of bonus for filing early! We file in January every year - who wouldn't want their refund as soon as possible? :o)

Connie said...

Oh don't I know it!!

My ex-husband didn't file in 1996. He owed $200. 10 years later they came after ME because I had been married to him at the time. The bill was now $1200.

I've heard a lot of people owe this year that used to get refunds. Welcome to redistribution of wealth! You should get to have a picture of the family you're supporting!

Janette Johanson said...

Haha, funny about connie's comment. We always rush to do our taxes each year as soon as we have all of our documents. We went with HR Block this year and my company decided to send me 2 different W2's and I had no idea that HR block charges for every form you submit-- geesh-- it was pricey! Then had the gaul to ask me if I wanted to donate any money to the presidents fund for whatever-- gimme a break.