December 18, 2024
Tax day is here. See what you need to know to file before the deadline. #CashNews.co

Tax day is here. See what you need to know to file before the deadline. #CashNews.co

Cash News

Even when you know the tax deadline is coming, the calendar has a funny way of creeping up on you.

Today is tax day — the last day to file your 2023 federal income tax return on time without incurring late filing or late payment penalties. Here’s what you need to know to both file and pay taxes before the clock strikes midnight.

When is the tax deadline this year? It’s Monday April 15, 2024

For most taxpayers, the federal tax filing date falls either on April 15 or the next business day. That means that this year, according to the IRS, tax day is for most calendar year filers.

Residents of Maine or Massachusetts get an extra day thanks to Emancipation Day holidays and other legal holidays that conflict with the April deadline. Their federal tax deadline is Wednesday, April 17, 2024. Eligible taxpayers affected by natural disasters may also have received automatic federal filing extensions from the IRS.

How to file your income taxes

If you’re in a rush to submit your tax return before the deadline, there are several options to get your forms filed quickly and accurately. But first, gather your paperwork for the tax year, including but not limited to , and other tax withholding documentation.

Use IRS Free File or Direct File

The IRS has several programs to help taxpayers file their income tax returns for free this tax season. The first is the pilot program, which supports filing directly with the IRS for free if you’re an eligible taxpayer in one of 12 states.

is a free guided tax software available to taxpayers across the country with an annual taxable income of $79,000 or less.

Opt for tax software

If you’re trying to get your federal or state income tax returns completed before the due date, tax software can get the job done quickly and easily.

The downside is most tax software doesn’t come free, which can feel like piling on if you already owe taxes. If you have simple, straightforward returns you may be able to slide in under the wire with one of the free or trial versions of tax software from TurboTax or H&R Block.

Find a government tax assistance program

There are a few government tax assistance programs like , for low- and moderate-income taxpayers, Tax Counseling for the Elderly (TCE), and , which is free tax software offered through the Department of Defense to military members, some veterans, and their families.

Consult a tax professional

While they’ll be extremely busy as the tax day deadline approaches, a tax professional can help you not only file a return but also do other tax preparation such as file a request for a tax extension or tax relief for federal or state taxes.

Read more:

Preparing your tax return at the last minute? 3 things you need to know

These are not-to-miss details to double-check before filing.

1. Which tax credits and tax deductions you’re eligible for

Make sure you’re aware of the you or your family might be eligible for and how they work. Popular tax credits like the and the can dramatically lower your tax liability.

2. Whether you’re doing standardized or itemized deductions

The work needed to itemize deductions may be tricky if you’re up against important tax deadlines. But there can be financial benefits that make the hassle worth it, especially for homeowners and those with significant medical expenses.

Here’s how to decide whether you should .

3. Select the right tax filing status

In addition to your annual income, your determines the rate at which you’ll be taxed, so it’s important to get it right. There are five federal filing statuses to choose from, but the most common is single or married filing jointly.

Not ready? Here’s how to file for an income tax extension

If you’re scrambling to file your federal tax return, you can request a little extra time from the IRS. Your must be submitted by the tax deadline, which gives you an extra six months to file a return but doesn’t provide an extension for making tax payments.

Even if you request a federal income tax extension, your estimated taxes are still due by the deadline. You can access e-filing options for tax extension requests on the .

How to pay your income tax bill or estimated tax payments

Not sure how to pay the piper for your unpaid taxes? Fortunately, you have several options. If you’re using e-file tax software, you can typically just route the tax payment through your bank account.

You can also go to the IRS website and use the portal, which lets you make an electronic payment with your debit card, credit card, or through IRS approved vendors. If you prefer to send a check or money order via snail mail, the IRS provides instructions on including a voucher (you’ll file ) with your tax forms.

If you by the tax deadline, the IRS offers several repayment plans. These include a short-term repayment plan (less than 180 days), a longer-term installment plan (more than 180 days), and a settlement option called available to some taxpayers suffering from financial hardship.

Read more:

What happens if you don’t file before the tax filing deadline?

Failing to file taxes before the deadline comes with a cost. The IRS typically charges taxpayers two separate penalties, one for a failure to file and another for failure to pay.

The is 5% of your unpaid taxes charged each month but not to exceed 25% of your unpaid tax liability. If you’re more than 60 days late filing a return, penalties can be more expensive and also accrue interest.

are 0.5% of your unpaid taxes assessed each month but not to exceed 25% of your total tax bill. Once the IRS issues you a late notice, your late payment penalty increases to 1% per month plus accrued interest.

How to use your tax refund wisely

If Uncle Sam owes you money, you can expect a direct deposit to show up in your account a few weeks after you’ve filed. If you don’t choose direct deposit, getting a refund check may take a bit longer.

While you wait, you can start doing a little financial planning to ensure you’ll use your money wisely. Most Americans opt to pay down debt, but you can use that windfall to prop up an emergency fund or savings account or to put towards college or retirement.

Here are.

Frequently asked questions about the tax deadline

1. Do you have to file by the deadline if you don’t owe taxes?

While the IRS recommends most taxpayers file an individual income tax return, there may be some cases where filing isn’t necessary. For instance, if your only , some of that income may be tax-exempt.

In general, IRS income thresholds for are $13,850 for single filers, $27,700 for married couples filing jointly, and $20,800 for head-of-household filers. It’s worth noting, however that the there is no failure to file a penalty if you’re owed a refund.

2. Are state income taxes due at the same time as federal taxes?

Most state tax returns have the same or a similar deadline as federal tax returns, but there are some exceptions. You should check your state website for more information about when and how to file your state tax returns.

3. Do you have to pay taxes by the filing deadline?

Tax day isn’t just a filing deadline. It’s also the deadline for paying taxes. Otherwise you’ll begin to incur penalties. Even if you get an extension of time to compile and complete your tax return, you’ll still be expected to make an estimated tax payment by the tax deadline.

If you’re unable to pay your taxes by the deadline, the IRS offers for eligible taxpayers.