Tax Day 2024 news summary | 15 April 2024
2024 Tax Season updates: deadline, extension, tax credits, refund status
- Today is Tax Day and more filers must submit their return by midnight to avoid fees and penalties
- What happens if I have not paid my taxesbefore tax deadline day 2024?
- There is still time to request an extension, but do so ASAP because today is the last day
- Taxpayers in twelve states have the option to pilot the IRS Direct File software
- Average refund size up compared to those sent by the IRS in 2023
Helpful links
- What is the difference between tax return ‘accepted’ and ‘approved’?
- Tax Deadline 2024: when is the last day to submit the documentation?
- Are there any tax benefits to being married over being single?
- Tax Season 2024: Do senior citizens on Social Securityhave to file taxes?
Read more from AS USA:
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There is still time to claim stimulus checks.
The IRS gives taxpayers three years to submit or amend a tax return. That means this is the last year to claim the Economic Impact Payments, more commonly known as stimulus checks sent in March 2020.
The tax credit to claim the checks if they were not sent to you or deposited directly into your bank account was the 2020 Recovery Rebate Credit, and a 2020 return with that credit claimed must be submitted by 17 May 2024.
If you are eligible, $1,200 will be tacked onto your refund for that year and will not impact the refund you receive this year for filing your 2023 tax return. For more information, read on in our full coverage.
Americans across the nation are filling out their tax forms to submit to the IRS if they haven’t already done so for the 2023 fiscal year. One of the major credits that families with children may be able to take advantage of is the Child Tax Credit, which is worth up to $2,000.
This year, the federal benefit is partially refundable, and to start claiming the portion known as “Additional Child Tax Credit” worth up to $1,600, a specific earnings threshold needs to be met.
According to the IRS, a filer cannot have an income greater than $200,000 (or $400,000 for joint filers) to claim the CTC. Read more in our full coverage on the states that have their own CTC.
Receiving a tax refund is important to any taxpayer, so be careful how you file your return as this may affect how you get your money back.
Once you have filed your tax return with the Internal Revenue Service, changing the refund method is not possible. The refund method you choose on your tax return determines how you receive any refund owed to you. More on this in our coverage.
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Both tax deductions and tax credits help reduce the amount of taxes you owe, but they work in different ways.
Find out more about the differences between the twoin our coverage.
Electric Vehicle owners can claim clean vehicle credit
The Inflation Reduction Act (IRA) of 2022 makes several changes to the tax credit provided in the Internal Revenue Code for qualified plug-in electric drive motor vehicles, including adding fuel cell vehicles to the tax credit.
The IRA also added a new credit for previously owned clean vehicles under the Code. Learn more about the new requirements to claim the credit in the link below.
Beware of scams on Tax Day
Now that many people are frazzled trying to beat the April 15 deadline to file their taxes, they may be vulnerable to falling prey to scammers.
The IRS is reminding taxpayers that they don't ask for payments in the form of prepaid debit cards, gift cards or wire transfers. Keep an eye out for other scams, like phishing and the promotion of abusive tax schemes.
Krispy Kreme deals for tax day
Krispy Kreme is sweetening Tax Day by offering a special deal on donuts only for today.
If you buy a dozen original glazed donuts, you can get another dozen for just the price of sales tax in your state.
This is the second consecutive year the chain has offered this tax break to its customers.
Maine and Massachusetts taxpayers have two days left
While most of the U.S. scrambles to file their returns or requests for extensions today, residents of Maine and Massachusetts have two more days to do so.
This extra period is due to the Patriots Day and Emancipation Day holidays.
The IRS reminds taxpayers to request an extension if needed
The Internal Revenue Service is asking all taxpayers who believe they will be unable to file their return on time to request an extension.
You still have time to use Free File to fill in a request and if you do it in time you can receive a six-month leeway to submit your income tax return without being penalized.
Today is Tax Day, and the millions who have yet to submit their 2023 tax returns may wonder how much the IRS will charge them for failing to turn them in on time.
If taxpayers fail to pay their taxes on time, they will be charged a penalty of 0.5 percent of the unpaid taxes each month. This penalty is charged in full even if the taxpayer pays before the end of the month.
You still have a few hours...
The big April 15 tax deadline is here, but do not panic if you haven't finished filing your return. The Taxpayer Advocate Service offers resources that you can use to help you file your taxes... or at the very least you can get information on how to request an extension if you feel there is no hope of submitting your return today.
Need help from the IRS? There is still time
For those rushing to fill out and submit their tax returns today, the IRS is available by phone to answer any last minute questions. Additionally, those that earn less than $64,000 a year, are over 60, have a disability, or requires language support, can receive free tax filing support for the tax authority. However, since the deadline for most filers is today, it would be best to submit a request for an extension and then identify if you qualify for additional support while filing.
Taxpayers can claim various tax benefits and credits, including the Earned Income Tax Credit (EITC) of up to $7,430. This benefit aims to help low-to-moderate-income workers. If a taxpayer qualifies, they can use the credit to reduce the taxes they owe or increase their refund. Approximately 23 million workers and families received about $57 billion in EITC last year.
Thanks to the EITC, low- or moderate-income workers can claim between $600 and $7,430 on their tax return, depending on eligibility criteria. The amounts of tax support depend on the number of children the taxpayer has, as well as their annual income.
Today is Tax Day, and the millions who have yet to submit their 2023 tax returns may wonder how much the IRS will charge them for failing to turn them in on time.
If taxpayers fail to pay their taxes on time, they will be charged a penalty of 0.5 percent of the unpaid taxes each month. This penalty is charged in full even if the taxpayer pays before the end of the month.
Read our full coverage for more details on the penalties, as well as information on how to avoid these late fees by setting up a payment plan with the IRS.
The Taxpayer Advocate Service has guidance for those hurrying to submit their returns
Have questions while filing your return? The US Taxpayer Advocate Service, a federal agency tasked with supporting filers, has plenty of resources that may be of use. As the clock runs out, these resources may be helpful, and if you still are left with questions, make sure to file a request for a free extension by midnight, and the deadline will be pushed back to 15 October. Please be aware that the extension does not relate to any taxes owed to the IRS only the submission of the return.
The deadline is here
The IRS is providing taxpayers with additional information as the 2024 tax season comes to a close. Today is the deadline for the vast majority of filers, and there are plenty of free electronic options available that the IRS is urging people to take advantage of. For those who do not think they will be able to finish up their return today, a free extension can be requested. Today is the last day to request the extension, so make sure to act quickly if you need one.
How to report gig work to the IRS
This year, the IRS is taking additional steps to ensure that income generated through gig work, particularly on apps like Uber, Lyft, or Etsy, are reported on a person's tax return. All of these platforms will be required to send users a 1099-K, which will include the income generated through the platform and that information can be reported on one's tax return.
Those with an income from gig work that is less than $600 will not be required to pay tax on those funds. The webpage, set up by the IRS, offers gig workers tips to ensure that they are not missing payments to the IRS, which can lead to penalties and interest being accused on funds that are not paid on time.
Gig workers, like the self-employed, are required to pay taxes and report their income to the IRS on a quarterly basis:
- April 15 for payment period January 1–March 31
- June 15 for payment period April 1–May 31
- September 15 for payment period June 1–August 31
- January 15 for payment period September 1–December 31.
Sticking to this calendar will be the most effective way to ensure that you are not incurring penalties.
There is still time to take advantage of the Direct File pilot
The IRS is reminding tax payers that in twelve states, they have the option to use the IRS' pilot filing software Direct File that will be rolled out nationally next year.
The software is available in the states where no state taxes are levied on income: Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. If you lived in one of these states for all of 2023, you can use the software.
Additionally, residents of Arizona, California, Massachusetts, New York, and Washington can also take advantage of the pilot program this year.
The 2024 tax season is coming to an end. For most filers, Monday, 15 April 2024, is the last day to turn in their 2023 tax returns on time. Due to the Patriot Day and Emancipation Day holidays, Maine and Massachusetts residents have until April 17 to do so.
Taxpayers who require more time to file their taxes can request a six-month extension until October 15, thus avoiding fines for late filing. This extension must be requested through the IRS Free File tool or by submitting Form 4868 before April 15. Again, this means no extension can be requested after today unless you are granted one automatically. Read more about the penalties that can be incurred if your taxes are not paid on time.
Those living outside the US have a bit more time to file their 2023 tax return
Today is Tax Day in the United States, but citizens living abroad have a couple more months to file the necessary paperwork with the IRS.
The Child Tax Credit (CTC) is a financial benefit offered by the US government to help families with the cost of raising children. During the COVID-19 pandemic, as part of the American Rescue Plan, the credit was made refundable, and the value was increased from $2,000 per child to $3,600 for children under 6 years old and $3,000 for those between 6 and 17.
This expanded credit can still be claimed if you have not done so already. That is because the IRS allows filers to do their old taxes up to three years after the end of the filing season. Filers will have until next year to file their old Child Tax Credit information.
Avoiding mistakes on your return is critical to getting your refund in a timely manner
The best way to ensure that you receive your refund as soon as possible is by submitting a return free from errors. By using electronic filing software to generate your return, you may be able to avoid making small mistakes that could delay the distribution of your refund.
For those who need help figuring out which filing status to choose, the IRS' Interactive Tax Assistant can help you out.
Congress could make filing taxes much easier
The tax filing process in the US is much more complicated than it needs to be. The IRS has all of the information it needs to file a return on your behalf, but it makes filers jump through hoops and pay for expensive software or professional help.
The outlet, More Perfect Union, called attention to this issue on X, writing that millions of filers were able to use the Direct File program, noting that the IRS will "pre-populate the returns of people who use the free, direct file pilot with info the agency has on your income and employment."
Another great reason for those in the twelve states where Direct File is being piloted to test it out. For more information on Direct File, check out our full coverage.
Looking to establish a payment plan with the IRS?
“If you are a qualified taxpayer or authorized representative (Power of Attorney) you can apply for a payment plan (including installment agreement) online to pay off your balance over time,” reports the US tax authority.
To do so, you can visit this webpage, which takes you to the payment portal, and will prompt those using to establish a payment plan with the tools necessary to do so.
There are two types of plans: short-term and long-term payment plans. The short-term plans can be paid off in 180 days or less and are eligible to those that "owe less than $100,000 in combined tax, penalties and interest," while those established for the long-term determine a monthly payment that will be paid in installments until the debt is paid off completely.
In order to set up a long-term payment plan, one must owe the IRS "$50,000 or less in combined tax, penalties and interest." Read more on payment plans on the IRS website.
With less than a day to file your taxes on time in California, many may hope to extend the deadline by a few months. The process could not be easier because, in reality, there is no process.
The California Franchise Tax Board (CFTB) does not require a petition for an extension to be filed; instead, it offers an automatic six-month extension to all those who do not meet the deadline. However, like extensions offered for federal returns by the IRS, it only applies to submitting one’s return and not any taxes owed by the 15 April deadline. Payments can be made online through the CFTB’s website.
Do you know about the Taxpayer Bill of Rights?
As tax season comes to an end, the Taxpayer Advocate Service, a government agency that supports the public as they engage with the IRS, wants people to know their rights.
The goal of the Taxpayer Bill of Rights, adopted in 2014, is to "group the existing rights in the tax code into ten fundamental rights, and makes them clear, understandable, and accessible."
The advantages of filing your return electronically
The IRS encourages all taxpayers to submit an electronic return to avoid simple mistakes and receive their refund faster. On average, those who submit an electronic return and provide the IRS with direct deposit information receive their refund after twenty-one days.
Check out the link below for the advantages of filing electronically.
Attention first-time filers!
If it’s your first-time ever to file a tax return, you may be overwhelmed and have put off going through the process.
There is only one day left before the big deadline, but the IRS has a step-by-step guide for filing that can help you avoid fines.
The information on the website can help you gather the documents you need, determine whatever credits or exemptions you might be entitled to, and learn how to file your return.
While 15 April is synonymous with “Tax Day,” not every state has the same deadline.
The federal deadline for filing your 2023 tax return falls on that date in 2024, but some states have different deadlines, and there are even situations where extensions can be granted. Here’s a breakdown of the states with different deadlines.
Today is Tax Day in the United States, and those who have yet to submit their returns should do so as soon as possible to avoid incurring fees or peanlities. There are options for those who don't think it is feasible to meet the deadline. The extensions are free to request, but they do not alter the deadline for any owed taxes, and missing payments can incur penalties and fees.
For those looking for free filing options, some filers have various options this year. Residents of twelve states can use the Direct File program, which is a free filing software that the federal government is piloting this year.
Outside of those states, filers with an annual income under $79,000 can use the IRS Free File programs that partners of the IRS have developed to meet different filing needs.