Taxes – a seemingly innocuous word, yet capable of producing a myriad of reactions. Whether you’ve been filing taxes for ages now, or it’s your first or second rodeo, you should know that it pays to stay ahead of deadlines and due dates where taxes are concerned. Keeping ahead of those deadlines can feel like a game where the rules are always in flux.

But fear not – we’re here to shine a light on the 2024 tax deadlines so you can easily find the information you need and get back to focusing on other things that matter to you.

Go ahead and grab your pen. Shall we begin?

Where to Start

Put a reminder for late January on your calendars. This is the earliest you’re able to submit your federal tax return for the 2023 tax year.

The Deadline

Lock in April 15th as the final deadline to not only submit your tax return, but also to pay any taxes due.

Room to Breathe

Feeling boxed in? You can buy some time with an extension, pushing your filing deadline to October 15th, 2024. Just keep in mind, if you owe taxes, you still need to pay them by April 15^th. You also need to file for the extension by the April 15^th deadline.

Estimated Tax Deadlines

Freelancers and filers with a side hustle, mark these 2024 estimated tax deadlines: April 15, 2024; June 17, 2024; September 16, 2024; and January 15, 2025. Making estimated payments throughout the year prevents unhappy surprises at tax time.

State Tax Deadlines

When it comes to state taxes, not all states operate on the same schedule. While some states choose to align their deadline for state taxes with the federal deadline, others may do their own thing altogether. So, it’s key to know your state’s specific dates to avoid any surprise penalties. Go ahead and take a moment to find your specific state tax deadline and pin it on the calendar:

Consequences of Missing Deadlines

Alright, now let’s talk about something none of us want to face but should be aware of: the consequences of missing tax deadlines. It’s like that feeling when you realize you forgot to study for a major test – except this involves the IRS, and trust me, they’re not as forgiving as your high school algebra teacher.

Late Filing Implications

First up, late filing. The IRS accepts late homework, but if you miss the April 15^th deadline without filing an extension, you’re looking at a failure-to-file penalty. This isn’t just a slap on the wrist; it’s usually 5% of the unpaid taxes for each month or part of a month that your return is late. And here’s the kicker: this penalty can go up to a maximum of 25% of your unpaid taxes. Yep, that’s a quarter of what you owe, just tacked on for being late!

But wait, there’s more. If you file more than 60 days after the due date, the minimum penalty is either $485 (as of 2024) or 100% of the unpaid tax, whichever is less.

Sound complicated? Let’s break it down a bit more:

Scenario: Imagine you owe $1,000 in taxes but didn’t file an extension and missed the April 15th deadline.

Penalty: The IRS charges 5% per month on the unpaid tax. So, for the first month, you’d owe an additional $50 (5% of $1,000).

Over 60 Days Late: If you file over 60 days late, the minimum penalty would be the lesser of $485 or your unpaid tax (100% of $1,000 in this case, so $1,000). So that’s $485 in penalties, minimum.

Late Payment Implications

Now, let’s say you filed your taxes but didn’t pay up. That’s a failure-to-pay penalty. It’s generally 0.5% of your unpaid taxes per month, starting after the due date of your return, until the tax is paid in full. The maximum penalty is, again, 25%. But here’s a bit of good news: if you have both penalties applied in the same month, the IRS reduces the failure-to-file penalty by the failure-to-pay penalty. So, instead of 5% per month, it drops to 4.5% (with an additional .5% failure-to-pay penalty). Small mercies, right?

And remember, interest accrues on your unpaid taxes from the due date of the return until you pay the balance in full. The interest rate is determined quarterly and is the federal short-term rate plus 3%. Oh, and it compounds daily.

Again, let’s break it down:

Scenario: You filed on time (or didn’t) but didn’t pay the $1,000 you owe.

Penalty: The IRS charges 0.5% per month on the unpaid tax. So, for each month, you’d owe an additional $5 (0.5% of $1,000).

Combined Penalty: If you also filed late, the total penalty starts at 5% but reduces to 4.5% when combined with the late payment penalty.

Interest: Plus, interest accrues on your unpaid tax. If the rate is, say, 4% annually, this would add about $3.33 per month to your bill (compounded daily).

Yeah, yikes.

Special Considerations

In exceptional cases, like for those affected by major events or disasters, the IRS may offer relief. For instance, taxpayers impacted by the terrorist attacks in Israel have been granted an extension to October 7th, 2024, for filing and other tax-related deadlines.

Options for Those Who Can’t Pay

Life happens. We get it, and believe it or not, the IRS gets it, too – which is why the IRS offers payment plans and options for those experiencing financial hardship. Remember, it’s way better to file on time and negotiate than to not file at all.

Help from FileSmart

Now, dealing with the IRS is never fun, and less so when the topic is penalties, but you don’t have to go it alone. Missed a deadline? Facing a penalty? Deep breath – FileSmart is here you sort it out. We’re like your tax guardian angel, offering advice and solutions tailored just for your situation. Think of us when you need to figure out the best move, like setting up a payment plan or finding a way to lessen penalties.

Tax Prep Made Easy

Alright, now you know your dates, so only one thing can follow. Forget the long lists and complicated steps; here’s the lowdown on getting ready to file:

Grab the Essentials: Think of this as grabbing your keys and wallet before you head out. Snag those key documents – your W-2s, 1099s, and anything else that screams “income.” Self-employed? Make sure you’ve got your income statements handy.

Remember the Deductions: Keep an eye out for anything that might save you some bucks – like those donation receipts or business expenses.

Keep It Organized: Whether you’re a folder person or a computer wizard, just keep things where you can find them. Trust me, ‘future you’ will thank you.

Filing: Choose Your Adventure

E-filing: Fast, easy, and the IRS loves it. Perfect if you like to get things done as quickly as possible.

Paper Filing: Old school but reliable. Just be ready for a bit more waiting.

Conclusion

That’s everything you need to know about 2024 tax deadlines. But remember, deadlines may be subject to change under special circumstances, so keep an eye out for any potential updates. We’ll keep you posted here with all the latest, so you won’t miss a beat.

That’s it! Keep it simple, start early if you can, and hey, if you get stuck, FileSmart is just a click away to help you out. Remember, it’s just taxes – you’ve totally got this!