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April 15th has traditionally been the last day of the year to file taxes. However, due to Emancipation Day falling on April 15th most state and federal individual income taxes can be filed by April 18th. There are many solutions for filing taxes on time. There are online tax programs that will allow for filing taxes in the comfort of home. However, filers should always attempt to pay their taxes by the deadline. Tax payers need to be aware that a variety of penalties can be issued to those who do not file on time.

Computer programs such as TurboTax and H&R Block make it convenient to file taxes from home. With step by step instructions these programs are easy to use, and guarantee that tax payers will receive the maximum tax refund. Some of these tax programs are free for federal tax filings, and some charge a small fee for filing state taxes. TurboTax and H&R Block online tax filing programs are a great way to file taxes by the April 18th deadline.

Filing online will save time and money. Since taxes can be completed at any pace, filers will not have to take extra time attending an appointment with a CPA. There also will not be any fees to pay for services rendered by an accountant. Although these programs make it easy to file at their own pace, it is extremely important tax payers remember to file on time, or file for an extension on time.

Assistance is available for any questions filers may have. The online professional tax assistant can be contacted via email, phone, or chat. These tax experts can also help with complex tax situations such as audits, and filing extensions. Those who do not file their returns on time can expect to be penalized up to almost 50% of their unpaid taxes. Online tax services help ease the tax season burden.

Computer tax programs provide a solution for those with returns that will not be ready to be filed by April 18th. The IRS allows a 6-month extension. Online services can be used to file for the 6-month tax extension. Tax payers should be aware that even though they are filing for an extension they will still need to pay on time. This date is usually April 15th. However, due to the Emancipation Day holiday the date has already been extended to April 18th. Extension filers must estimate and pay the amount they will owe when filing for the extension. Tax payers should also be aware that if they do not send at least 90% of the estimated payment they will be charged a late payment penalty. Exceptions will be made for US citizens or resident aliens whose main place of work is abroad (outside of the United States and Puerto Rico). Those who are overseas because they serve in the military also will not have to file for the extension. These filers have the extra two months to file without requesting the extension. Although there will usually be a charge, this may be the best option for some.

This gifted author gives interesting resources about Tax Software Coupons. You can learn pertinent hints to help you maximize your tax filing with deals on Tax Extensions and more.

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It's that time of year again... time to file your income tax return.

What if you can't get it done or don't have all of your material to prepare it?

File for an extension.

There are many reasons taxpayers may want to file an extension. Procrastination is right at the top of that list. For others however it may be that all of their tax documents have not arrived yet. The Form K-1 (From partnerships, subchapter S corporations and estates and trusts) may not be received so as to prepare a return by the due date.

To file an extension, complete Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. This must be completed and filed by the due date, normally April 15. For 2010 returns it is April 18, 2011. The extension is granted automatically if it is filed completely and on time. The extension is for six months and allows for the returns to filed up until October 17, 2011.

Taxpayers must also file an extension in the state they are a resident of and any other states they may be required to file in. In Connecticut, taxpayers must file Form CT-1040- Ext, Application for Extension of Time to File Connecticut Income Tax Return for Individuals.

The extension merely extends the time to file the return; it does not extend the time to pay any taxes due. If taxes are due, they should be paid when the extension is filed.

Taxpayers that want to fund a Traditional IRA or a Roth IRA for 2010 need to have this made by April 18, 2011. Taxpayers with enough earned income that meet certain income requirements, can fund up to $5,000 into an IRA, Roth IRA or perhaps some combination of these. Taxpayers age 50 and older can make an additional $1,000 contribution in a so-called "catch up" contribution.

Taxpayers that are self-employed and want to fund a Simplified Employee Pension ("SEP") have until the due date of the returns, including the extension to fund this. In other words, if you want to fund your SEP, you can file the extension and this will allow up October 18, 2011 to fund this account.

As with other tax forms, we recommend the application for extension be mailed by Certified Mail-Return Receipt Requested.

This will provide you with proof of mailing.

ACTION ITEM: If you can't file your income tax return by April 18, 2011, file an extension.

Thomas F. Scanlon, CPA, CFP® is the President of Borgida & Company P.C., CPA's in Manchester, CT and can be reached at http://borgidacpas.com/

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