Tax Day in the United States has arrived, with many Americans scrambling to file their 2023 income tax returns before the midnight deadline. According to IRS Commissioner Danny Werfel, more than 100 million returns have already been received, with millions more expected in the final days. It has been reported that over $200 billion in refunds has been paid out by the IRS through early April, with two in three filers expecting money back.
For those filing at the last minute, here are some tips to help with filing your federal return or obtaining an extension to file without facing financial penalties. While April 15 is typically considered the deadline for most taxpayers, certain exceptions exist, such as living in a disaster area or observing state holidays. Americans living abroad automatically receive an extension until June 15 but must pay any owed taxes by April 15.
If you are unable to file your form 1040 by the deadline, you can request an automatic six-month extension by filling out a form, pushing your filing deadline to October 15, 2024. Without an extension, late filers owing money to the IRS will face penalties and interest on their outstanding balance. It is essential to estimate what you owe and make a payment by the deadline to avoid additional penalties and interest charges.
In addition, double-check your return to ensure all information is correct, such as your name, address, filing status, Social Security number, and bank account details for direct deposit. It is also advised to answer questions about digital assets and taxable cryptocurrency transactions accurately to prevent further issues with the IRS. Various tips and resources from the IRS can be utilized to help with last-minute filing and address any questions or concerns.
If you are expecting a refund and have not received it yet, you can track its status using the IRS Where’s My Refund? tool online. The average refund as of early April was $3,011, with quick turnaround times reported for refund processing. Werfel praised the IRS for their efficient refund distribution this year, emphasizing the importance of these refunds for many taxpayers. Suggestions for allocating your refund wisely are also provided for consideration.
Overall, Tax Day serves as a reminder for individuals to finalize their returns or seek extensions in order to fulfill their tax obligations and avoid penalties. By following these last-minute tips and guidelines, taxpayers can navigate the filing process and ensure a smooth experience with the IRS. Tracking the status of any refunds owed can provide peace of mind and help plan for any potential financial situations that may arise.
