Missed the April Tax Deadline for Your 1040? Here’s How a Tax Extension Works
Did the tax deadline sneak up on you this year? You’re not alone—millions of people filed for a tax extension in 2024, pushing their individual deadline from April 15 to October 15. But what does this mean for you?
A tax extension gives you an extra six months to file your federal tax return. However, any taxes owed were still due by April 15, so you may face additional fees if you haven’t paid yet. The IRS offers payment plans to help you pay off your balance in installments. If you’re expecting a refund, there’s no penalty for filing late, but it’s important to be aware of potential liabilities.
Are You Reporting Your Digital Assets Correctly?
With the IRS focusing on tax evasion in cryptocurrency, it’s crucial to know the rules. Under “Operation Hidden Treasure,” they’re investigating cases related to digital assets. If you’ve been involved in transactions—buying, selling, trading, or earning cryptocurrency—these need to be reported.
Digital assets are treated like property, and activities like staking rewards must be included in your gross income. When filing your tax return, make sure you properly report your digital asset transactions using the correct forms (e.g., Form 8949, Schedule D). Keeping up with regulatory changes is essential as new rules will come into effect in 2025.