Tax filing deadline approaches with extension options for some

With April 15 just days away, tax season is in full swing across the region.

If you’re getting a tax refund, you should submit your return as soon as possible. However, if you owe and feel you won’t make the filing deadline, you can file for an extension. The extension does not delay what you owe. It only gives you more time to file.

“If someone misses the deadline on the 15th, if they did not owe taxes, they would be alright, but if you owe taxes you would get a failure to file penalty, which is one of the biggest penalties there is,” said Fabian Presscott, multi-office manager for Jackson Hewitt Tax Services.

Storm-impacted counties get extension

Residents of Chester, Decatur, Hardeman, Hardin, Henderson, and McNairy counties were granted an extension due to the impacts from January’s winter storm. Businesses and residents in those counties qualify for an extension until May 22 for returns and payments that were due after Jan. 22.

“Madison County was not in that one. You would have to go to the IRS website and find out what counties were actually involved in that,” said Presscott.

Deductions available to Tennessee workers

While Tennessee does not levy a state income tax, workers could see federal deductions from taxes on tips, overtime, and automotive loan interest.

Seniors 65 and older can claim an additional $6,000 deduction. Tipped workers can deduct up to $25,000 from voluntary tips which excludes automated gratuities. Workers filing single or separate can deduct up to $12,500 from overtime, or $25,000 if filing married. Auto loan interest may be deducted up to $10,000 on qualifying vehicles.

The overtime tax deduction is expected to yield a tax cut of $1,400 to $1,750 per year through 2028.

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