Overview of Tax Season 2024
The 2024 tax season began on January 29, allowing taxpayers to start submitting their 2023 returns. As of now, the IRS has processed a significant number of returns and issued billions in refunds.
Federal Tax Return Deadline
For most US taxpayers, the deadline to file federal tax returns is April 15, 2024. However, residents of Maine and Massachusetts have an extension until April 17, 2024, due to regional holidays.
Special Extensions for Certain Taxpayers
Those living in federally declared disaster areas and military personnel serving abroad may receive additional time to file their taxes.
Understanding Tax Extensions and Their Implications
How to File for an Extension
Taxpayers can request an extension by submitting IRS Form 4868 electronically or by mail by April 15, 2024. This extends the filing deadline to October but does not postpone the due date for any owed taxes.
Potential Penalties for Late Payment
It’s crucial to pay at least 90% of the estimated tax liability by April 15 to avoid penalties and interest. Failure to do so can result in a late-payment penalty and accrual of interest on the unpaid amount.
State Tax Deadlines and Extensions
States with Unique Tax Deadlines
Most states follow the federal filing deadline, with a few exceptions like Delaware and Virginia. It’s important to check with your state’s Department of Revenue for specific deadlines.
Extension Requests for State Taxes
Like federal taxes, many states allow taxpayers to request filing extensions, but outstanding payments are still due by the original deadline.
Impact of Filing Extensions on Refunds
Delay in Refunds Due to Extensions
Filing an extension will delay your refund, as the IRS issues refunds based on the filing date. The timeline for receiving refunds varies, especially for complicated returns or those needing corrections.
Electronic Filing and Direct Deposit
The IRS encourages taxpayers to file electronically and opt for direct deposit to expedite the refund process.
Additional Tax Considerations for 2023 Returns
Child Tax Credit and Care Expenses
Changes in family circumstances, like a new baby, can affect your tax refund. The child care tax credit remains at its 2019 levels, offering significant refunds for eligible expenses.
Accessing Your IRS Tax Account Online
Reviewing your tax details, including adjusted gross income and previous credits, can be done through your IRS online account. This is particularly useful for resolving tax issues or locating missing payments.
Filing Your Tax Return: Methods and Tools
Available Options for Filing
Taxpayers can use various methods to file their taxes, including IRS-approved free filing services for those earning under $79,000. Electronic payments can be made through IRS Direct Pay or the Electronic Federal Tax Payment System.
Gathering Necessary Documentation
To file accurately, gather all relevant income statements (W2s, 1099s), understand your filing status, and have information about any dependents. Double-check these details to avoid errors that could delay your refund.
