Tax Day 2024 - Here's What To Know.
Tax Day in the United States refers to the deadline for individual federal tax returns and tax payments for most of the U.S. Around one-third (32%) of Americans wait until the last moment, right before the midnight deadline on April 15th, to file their taxes.
Here is what you need to know.
History of Tax Day
In 1913, the 16th Amendment to the Constitution was ratified, granting Congress the jurisdiction to tax all incomes. Initially, the deadline to file was March 1. In 1918, this deadline was moved to March 15th and was changed one last time in 1955 to April 15th, allowing more time for people to prepare their returns.
The April 15th deadline is upheld today in all states except Maine and Massachusetts, which have until April 17th because of state holidays. In addition, April 15 is the last day to file a six-month extension until October 15th, 2024, to mitigate additional fees, penalties, and interest rates. For more information about tax extensions, click here to watch a short YouTube video guide by Tax Consultant Noel B. Lorenzana.
IRS Direct File tool
According to a 2022 Annual Report to Congress by the Taxpayer Advocate Service, U.S. taxpayers average 13 hours and $240 out-of-pocket costs to file their tax returns annually.
To tackle these costs, on March 12th, 2024, the Internal Revenue Service (IRS) announced the launch of the innovative Direct File pilot. Thousands of taxpayers have already used the IRS Direct File tool, available in 12 specific states: Arizona, California, Florida, Massachusetts, Nevada, New Hampshire, New York, South Dakota, Tennessee, Texas, Washington, and Wyoming. Individuals with an adjusted gross income of less than $79,000 in 2023 qualify for free tax filing using this tool. To access it, search for the “IRS Free File” online and find your way to https://directfile.irs.gov/ under www.irs.gov. To determine your eligibility for the Direct File tool, take a brief survey by clicking here.
A short guide to preparing to file your taxes
The IRS provides a comprehensive step-by-step list to prepare to file your taxes here.
Create or access your account information at IRS.gov/account
Gather and organize your tax records
Check your Individual Tax Identification Number (ITIN)
Make sure you've withheld enough tax
Get banked to speed tax refunds with direct deposit This list is taken directly from the Internal Revenue Service (IRS) website and is not the work of SnapCivics. For more information, go to www.irs.gov.
Before filing your taxes, ensure you have the following:
Forms W-2 from your employer(s)
Forms 1099 from banks, issuing agencies, and other payers, including unemployment compensation, dividends, pension, annuity, or retirement plan distributions
Form 1099-K, 1099-MISC, W-2, or other income statement if you worked in the gig economy
Form 1099-INT if you were paid interest
Other income documents and records of digital asset transactions
Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
IRS or other agency letters
CP01A Notice with your new Identity Protection PIN This list is taken directly from the Internal Revenue Service (IRS) website and is not the work of SnapCivics. For more information, go to www.irs.gov.
What to avoid when filing taxes?
Choosing an incorrect filing status.
Not having all the necessary documents.
Incorrect or inaccurate personal information such as bank account numbers, Social Security numbers
Math mistakes.
Not filing – This can be considered tax evasion and lead to penalty charges!
Expert recommendation
If you are confused about whether to file tax returns online or through in-person mail: Eric Bronnenkant, the Head of Tax at financial advisory company Betterment, recommends the following: “Filing tax returns electronically is typically the preferred option, even at the last minute, it is likely better than using mail.” Generally, filing online is recommended to be a faster and more efficient choice because your return will reach the IRS and be processed much faster, which means a quicker refund.