Extensions Give You More Time to File—Not to Pay
Federal income taxes are due on April 15th, and Virginia state income taxes are due on May 1st. Many taxpayers are surprised to receive additional bills after filing their tax returns, even when they believe they’ve paid everything they owed at the time of filing.
This happens because they didn’t pay at least 90% of their total tax liability when they filed for an extension. While extensions grant extra time to file your tax return, they do not extend the time to pay your taxes.
Understanding Penalties and Interest
Adams Enterprises can help calculate penalties and interest for your federal taxes. However, for Virginia state taxes, it’s more complicated. Virginia assesses penalties and interest using a daily rate that changes frequently, making it challenging to predict the exact amount owed.
What Are Your Options?
If you expect to owe taxes, here are two key options:
- Pay the full amount by the due date to avoid penalties and interest.
- File an extension and pay at least 90% of your estimated tax liability.
To minimize stress and potential penalties, Adams Enterprises advises filing as early as possible in the tax year. Filing early gives you more time—until April 15th for federal taxes and May 1st for Virginia taxes—to gather the funds you need to pay.
We’re Here to Help!
Navigating tax season can be overwhelming, but Adams Enterprises is here to make it easier. Give us a call, and let us handle your taxes so you can sit back, relax, and watch your refund rise!
