April 15 is known to most Americans as “Tax Day.”
While the Internal Revenue Service (IRS) has already received a significant number of federal income tax returns ahead of Tax Day, with 101.422 million submissions as of April 4, there are still tens of millions more expected to be filed by US taxpayers before the deadline on Tuesday.
If you are among them, here are some last-minute tips to keep in mind.
Get all your documents in order
For individuals who are just getting started, it is crucial to gather all the necessary documents required to complete their tax return. This includes income reporting forms such as a W-2 from employers for earnings or a 1099-NEC/1099-MISC from clients for those working as freelancers or contractors.
Additionally, individuals using payment platforms like Venmo may receive a 1099-K if they have received payments for goods or services. Those who are receiving income distributions from an Individual Retirement Account (IRA) or pension should ensure they have a 1099-R form as well.
Also look for other 1099 forms from your bank and brokerage for other types of income you received during the year (e.g., interest, dividends and capital gains).
All these forms will have been sent to you by mail, electronically or both.
Consider, too, any major changes that took place in your life in 2024 that could affect your taxes either through new tax breaks or new types of reportable income – for instance, if you got married, had children, received alimony, started a small business on the side, bought or sold a home, inherited an IRA or collected unemployment benefits.
Figure out if you should itemize deductions
Most filers now take the standard deduction – a flat amount you deduct from your income ($14,600 for single filers and those who are married filing separately; $29,200 for married couples filing jointly; and $21,900 for head-of-household filers).
But if the standard deduction amounts to less than the total of the value of itemized deductions you’re eligible to take (e.g., state and local taxes, mortgage interest, charitable contributions, etc.) you might want to itemize.
If you do, gather the documentation you will need to back up those deductions (e.g. a Form 1098 for mortgage interest from your lender, contribution receipts from charities, etc.).
See if this 11th hour tax break is right for you
Speaking of deductions, if you qualify to deduct contributions to a traditional tax-deferred IRA, you can put away up to $7,000 ($8,000 if you’re 50 or older) by April 15 and still have it count as your 2024 contribution.
Since it’s an “above-the-line deduction” you’re allowed to take it even if you claim the standard deduction. Here are the eligibility rules if you have a retirement plan at work and if you don’t.
Consider using the free Direct File program
If you have a fairly straightforward tax situation with a household income below $250,000, and if you take the standard deduction and only a handful of credits pertaining mostly to family, you may be eligible to use the IRS’ free Direct File program. (Here’s how to figure out if it would be right for you.)
The Direct File option is currently available in 25 states: Alaska, Arizona, California, Connecticut, Florida, Idaho, Illinois, Kansas, Maine, Maryland, Massachusetts, Nevada, New Jersey, New Hampshire, New Mexico, New York, North Carolina, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Washington State, Wisconsin and Wyoming.
The program works on mobile phones, laptops, tablets or desktop computers. And it will help guide you to fill out your state tax return, too.
You also can file for free using one of several private-sector tax preparation software programs approved by the IRS. These free filing options, however, are for those with adjusted gross incomes of $84,000 or less. Other eligibility criteria may apply.
No matter how you file, do this
Whether you’re preparing your return on your own, working with a tax preparer or using Direct File, you always want to double check that everything is correct on your return before submitting it. Dopey little mistakes – getting a number wrong, misspelling your name, selecting the wrong filing status, etc. – can hold up the processing of your return. And if you’re due a refund, those errors could delay that money getting to you.
If possible, electronically file your return, which is generally considered to be safer and faster, according to the Taxpayer Advocate Service.
What to do if you can’t file by April 15
While April 15 is the deadline for most US tax filers, there are certain groups of filers whose official due date is later this year, such as people living and working in certain federally declared disaster areas (including everyone in Alabama, Florida, Georgia, North Carolina and South Carolina); some US citizens living abroad; and military members stationed outside the US or in a combat zone.
But if you’re not among any of those groups and you really can’t file your taxes by April 15, do these three things before 11:59 p.m. local time Tuesday:
1. File for an automatic six-month filing extension here.
2. If you think you still owe money to the IRS for tax year 2024, it must be paid by Tuesday, even if you request a filing extension. One way to ballpark whether you still do is to multiply your 2024 income by 20% and make sure that you have already paid that much, according to Tom O’Saben, director of tax content at the National Association of Tax Professionals. If you haven’t, send the IRS the difference.
3. Send that payment no later than Tuesday. If you’re mailing it, do so by certified mail, so you’ll have confirmation that it was sent and received. If you can’t pay all that you owe, pay however much you can by April 15, then explore the various payment agreements you can make with the IRS.
If you don’t file and haven’t requested an extension – or if you don’t pay the rest of what you owe the IRS for 2024 by Tuesday – you may be subject to a failure-to-file penalty equal to 5% of the balance you owe plus interest for every month you don’t file; and/or a failure-to-pay penalty equal to to 0.5% of what you owe plus interest every month until you pay in full.
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