TAX SEASON 2024
Can waiting to file tax returns as recommended by the IRS affect your 2024 refund?
There are a few cases where waiting to submit your tax return could have positive effects. A look at those specific cases...
Tax season has officially begun in the United States, with filers having until Monday, 15 April, to submit their return.
Extensions that push that deadline to 15 October are available for free. However, the extension only applies to submitting the return, not to any taxes owed to the IRS by the April deadline. Last year, the IRS argued that some filers should wait to submit their tax return until the federal agency concluded whether or not inflation relief checks issued by various states counted as taxable income.
The benefits of waiting to submit your tax return
There are a couple of reasons why waiting to file your return could be advantageous, according to the IRS.
Taking care to avoid mistakes
The first is not rushing when completing your declaration, as mistakes can lead to severe delays in receiving one’s refund. Taking your time can help you avoid simple mistakes. Getting support to complete your tax return correctly may be available through IRS tax clinics that are staffed by volunteers who have been trained to provide this type of assistance. If you are worried about making mistakes, waiting to submit your return until you can attend a clinic could be a worthwhile reason to delay your submission.
Legal changes that could impact the refund amount
Additionally, there is always a chance that Congress will pass a bill altering the tax code and leading one to receive a more substantive refund. However, in this case, the adjustments are typically made automatically. But, if one waits until after the law is passed, they will receive the correct refund immediately. This year, with Congress divided, a new law that would substantively change one’s refund is unlikely, but it is never out of the question.
Those already offered an extension
If you are living in an area that has been affected by a natural disaster, the Internal Revenue Service (IRS) will provide you with an automatic extension. The IRS has a constantly updated list of all the areas that are eligible for an automatic extension. However, if you reside outside of these areas, you can still get a free extension by using the IRS free file software.