Tuesday is Tax Day, the day federal and most state taxes are due. Here is what you need to know about filing your income tax return.
When is the deadline?
Tuesday is the federal tax filing deadline for most people. The deadline is usually on April 15, but the 15th fell on a Saturday this year, and Monday is a holiday in Washington, D.C. It’s Emancipation Day, the day that commemorates the official end of slavery in Washington, D.C.
Most states use the federal Tax Day deadline as the deadline to file state taxes, but not every state does. Click here to make sure of the deadline for your state.
What happens if I don’t file on Tuesday?
If you don’t file your income tax return on Tuesday, and you owe the government money, you will face fines and penalties in addition to the taxes you owe.
Can I get an extension on filing my return?
You can file for an extension but filing for an extension does not mean you do not have to pay any taxes you owe. It simply means you have more time to file the return.
If you owe taxes, you are required to pay the bill by April 18.
Some taxpayers offered extended deadlines
For taxpayers who live in areas that had severe storms or disaster declarations, the IRS is offering tax relief with extended deadlines that apply to various individuals and businesses.
Extended deadlines include:
- May 15 for New York winter storm and snowstorm victims from late December 2022.
- July 31 is the deadline for storm victims in Tennessee, Arkansas and Mississippi.
- Oct. 16 for disaster-area taxpayers in most of California and parts of Alabama and Georgia.
What kind of penalties do I face if I don’t file my return by Tuesday?
If you owe taxes and do not pay by Tuesday, penalties immediately take effect. The two penalties you will face are penalties for failure to file a return and failure to pay your tax bill. The penalties can be hefty.
· The Failure to File Penalty is 5% of the unpaid taxes for each month or part of a month that a tax return is late. The penalty won’t exceed 25% of your unpaid taxes.
· If you still haven’t paid after five months, the Failure to File Penalty will max out, but the Failure to Pay Penalty continues until the tax is paid, up to its maximum of 25% of the unpaid tax as of the due date.
· If your return was over 60 days late, the minimum Failure to File Penalty is $435 (for tax returns required to be filed in 2020, 2021 and 2022) or 100% of the tax required to be shown on the return, whichever is less.
How do I file my taxes?
Electronic filing is the way most people file their taxes. It is easier for the IRS to process the return and issue a refund or collect taxes owed.
If you file electronically and include direct deposit information, you should get your refund within 21 days.
If you file a paper return, it will take longer since the returns will have to be processed by hand.
Will I have to pay to file a return?
The IRS uses a service known as Free File if your adjusted gross income is $73,000 or lower.
If your income is above $73,000, then you will have to pay a tax preparation company to file electronically.
What if you can’t pay the amount of tax owed?
There are payment plans available to people who do not have the money to pay their tax bills by Tuesday.
However, under those plans, penalties will still be charged.
Should you skip filing if you cannot pay the tax you owe?
No, you should not skip filing. If you skip filing, you will have to pay a penalty for failing to file in addition to failing to pay the tax owed.
