Last-Minute Tax Advice for 2021

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Last-Minute Tax Advice for 2021

Tax Day is upon us! Here are a few quick tips that could come in handy while filing.

By damn_nation_inc

Published 4 years ago in Wow

Tax Day is upon us! Here are a few quick tips that could come in handy while filing.

There are two certainties in life - death and taxes, and the funny thing is that even the act of dying can often incur various odd taxes. These quick tips should hopefully help you get started on your path to financial literacy and be better prepared for next year at the very least.

1
You can get an extension to file until October 15 by submitting IRS form 4868. This gives you time to review your documentation and get all your paperwork in order.

2
However: paying on any date after May 17, 2021 - even with an extension - will incur failure-to-pay penalties and possible interest charges on the amount owed. If you owe taxes and wanna avoid paying even more over time, try to pay 90% of your taxes by the filing deadline.

3
Cryptocurrency assets are considered taxable property and incur short- or long-term capital gains taxes depending on how long you've held them. Simply buying and holding crypto is not taxable, but any event where your crypto assets are sold/exchanged (even for other cryptos) is.

4
If you made money selling stocks or cryptos this year, it's subject to capital gains taxes. If you held less than a year before selling (you paper-handed b***h), you'll face short-term cap gains, which have much steeper rates compared to what you'd have for long-term assets held for over a year.