Tax Day, the day federal and most state taxes are due, is here.
Here is what you need to know about filing your income tax return this year.
When is the deadline?
For most taxpayers, the deadline to file their federal tax return, pay any tax owed or request an extension to file is Monday.
Taxpayers living in Maine or Massachusetts have until April 17, 2024, due to the Patriot’s Day and Emancipation Day holidays. If a taxpayer lives in a federally declared disaster area, they also may have additional time to file.
Most states use the federal Tax Day deadline as the deadline to file state taxes, but not every state does. Click here to make sure of the deadline for your state.
What happens if I don’t file on the 15th?
If you don’t file your income tax return, and you owe the government money, you will face fines and penalties in addition to the taxes you owe.
Can I get an extension on filing my return?
You can file for an extension, but filing for an extension does not mean you do not have to pay any taxes you owe. It simply means you have more time to file the return.
If you owe taxes, you are required to pay the bill by April 15.
What kind of penalties do I face if I don’t file my return by Tuesday?
If you owe taxes and do not pay by April 15, penalties immediately take effect. The two penalties you will face are penalties for failure to file a return and failure to pay your tax bill. The penalties can be hefty.
- The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won’t exceed 25% of your unpaid taxes.
- If you still haven’t paid after five months, the Failure to File Penalty will max out, but the Failure to Pay Penalty continues until the tax is paid, up to its maximum of 25% of the unpaid tax as of the due date.
- If your return was over 60 days late, the minimum Failure to File Penalty is $435 (for tax returns required to be filed in 2020, 2021 and 2022) or 100% of the tax required to be shown on the return, whichever is less.
How do I file my taxes?
Electronic filing is the way most people file their taxes. It is easier for the IRS to process the return and issue a refund or collect taxes owed.
If you file electronically and include direct deposit information, you should get your refund within 21 days.
If you file a paper return, it will take longer since the returns will have to be processed by hand.
Will I have to pay to file a return?
The IRS uses a service known as Free File if your adjusted gross income is $73,000 or lower.
If your income is above $73,000, then you will have to pay a tax preparation company to file electronically.
What if you can’t pay the amount of tax owed?
There are payment plans available to people who do not have the money to pay their tax bills by April 15.
However, under those plans, penalties will still be charged.
Should you skip filing if you cannot pay the tax you owe?
No, you should not skip filing. If you skip filing, you will have to pay a penalty for failing to file in addition to failing to pay the tax owed.
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