It’s Tax Day, and here is what people who still haven’t filed their returns with the IRS should know.
Tax Day falls on April 18 this year. Typically, the tax filing deadline is April 15, but Washington, D.C., observed Emancipation Day on that Friday, so it was pushed to the following Monday. Millions of people are expected to file an extension as the IRS sorts through documents and sends tax bills and refunds.
Taxpayers are encouraged to file their taxes by the Monday deadline. Because of delays associated with the crushing volume of applications and fallout from the pandemic, IRS Commissioner Chuck Rettig has said people should file their returns electronically with direct deposit and avoid paper tax returns.
Rettig encouraged extra attention for those who received COVID-19 stimulus checks or advance child tax credits last year. He said that providing the IRS with the most accurate information will help avoid delays.
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EXTENSION
If you still haven’t filed your taxes by the April 18 deadline, you can request an extension to allow more time to piece together and submit your return. About 15 million people are expected to request an extension this year, according to the IRS.
You can request an extension by submitting a form 4868 either online or in paper. If you are mailing the tax collectors a paper copy, though, it should be postmarked on or before Monday. If you snag an extension, you will have until Oct. 15 to file before you start incurring penalties.
IF YOU MISS THE DEADLINE
Extensions can only be requested up until April 18, but if you miss that deadline, you can still file a return and are encouraged to do so sooner rather than later to avoid fees. There is a chance you might end up with a “Failure to File Penalty” if you skirt the deadline, which is a percentage of the taxes you didn’t pay on time.
How much the fine is, which can include interest, depends on several factors, including the amount of the taxes due on Tax Day and how long you wait to file a return without an extension after Monday’s deadline.
“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,” the IRS says on its website.
FILING FOR FREE
If you are trying to file taxes right up to the deadline or if you miss the Monday deadline, you still might be able to file your tax return for free. The IRS now offers a service called “Free File” that provides free online tax preparation and filing at a partner site of the IRS.
You must earn less than $73,000 per year in order to qualify for the Free File service, which allows you to file online and receive a refund via direct deposit should you qualify for one.
WHEN TO EXPECT A REFUND
The IRS said it has already disbursed more than 63 million refunds worth over $200 billion. The average refund for filers this year has been $3,226. Most people requesting a refund will have to wait less than a month to receive their funds. This year, about 90% of refunds were issued within 21 days of a request.
You have plenty of time to request a refund. In fact, you are allowed to request and receive the full amount of your refund up to three years from the deadline for this year’s tax return, meaning that you can still request a refund in early 2025. After April 18, 2025, though, you will lose your refund.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Late last month, the IRS said about 1.5 million taxpayers have not yet claimed refunds on their 2018 taxes, an amount totaling about $1.5 billion. Those people have until Monday to claim those funds before the IRS takes possession of them.
