Tax Day is here. Today is the last day for most taxpayers to file a 2023 return.
Don’t think you can file? Today is also the last day to request an extension, an action that buys you six extra months to file and greatly reduces any potential penalties or interest charges you might face for filing late.
The IRS had received 101.8 million returns by April 5 and processed just over 100 million. The average refund to date is $3,011, compared with $2,878 last year at the same time.
You’ll get an answer faster if you call the IRS
The IRS answered 1 million additional calls, up roughly 17% from 2023, through April 6. And in what could be a surprising development to many, the IRS has reduced wait times on its phone lines to 3 minutes, according to the U.S. Department of Treasury’s release Monday. Just two years ago, taxpayers were stuck waiting on hold an average of 28 minutes, according to Treasury.
Phone service improved as call volume rose roughly 13%. What’s helped pare the wait time? The IRS has a call back option now that’s available to 97% of eligible taxpayers at the start of the call, according to Treasury, if the expected wait time is longer than 15 minutes.
The IRS phone number is 800-829-1040.
Susan Tompor
H&R Block reportedly has issues with electronic filing on tax deadline day
Tax software giant H&R Block is having issues with its electronic filing on Monday, with many users reporting errors and bad gateways.
According to Downdetector.com, H&R Block began experiencing issues on Sunday evening.
As of this writing, H&R Block hadn’t responded to a request for comment. If you need to find another filing option, the IRS has a list of free options here.
Medora Lee
What is net pay? How is it different from gross pay?
Here’s what you should know about net pay: what it is, how to calculate it, and the difference between gross pay vs. net pay.
In simple terms, gross pay is an employee’s total earned wages before payroll deductions. Net pay is the money you take home from your paycheck after the deductions. The deductions include taxes and benefits.
For example, if someone gets paid $1,200 per week but $160 is taken away in deductions, the person’s net pay will be $1,040 per week.
Olivia Munson
Are IRS tax refunds bigger or smaller in 2024?
As of April 5, the average refund this year totals $3,011. That’s up 4.6% compared to the same time last year, when refunds averaged $2,878, the IRS reports.
A few more statistics of note:
- The average amount refunded by direct deposit is $3,088 through April 5, compared to $2,942 last year, a 4.9% increase.
- The total number of returns received by IRS so far is 101.8 million, up from 101.3 million at this time in 2023.
- The IRS has processed 100.1 million returns as of April 5, compared to 100.4 million at this time last year.
- Visits to the IRS website are up a whopping 18.2%, from about 421 million last year to 497 million this year. The agency has been working to improve customer service.
Daniel de Visé
What triggers an IRS audit?
When you’re audited, it means your return was singled out for closer inspection. This happens because your tax filing was among those that showed the “highest potential noncompliance,” the IRS says. The agency uses data-driven algorithms, third-party information, whistleblowers and information on the forms you submit to determine if income, expenses and credits are reported accurately.
What triggers an audit? Mismatches. Make sure you enter your information from official tax forms correctly, so the numbers are consistent, said Erin Collins, National Taxpayer Advocate at the Taxpayer Advocate Service division of the IRS. The agency also looks for outliers, like a filer who writes off travel costs way above what the typical taxpayer would deduct.
The easiest way to avoid an audit is to be “accurate, honest, and modest,” said Eric Scaringe, principal at certified public accounting firm UHY.
Medora Lee
Filing an extension on Tax Day? You may need form 4868
Tax filers who aren’t prepared to submit their returns on Tax Day can use IRS Free File to request an extension electronically. But if you prefer to mail a paper version of the extension, you’ll need form 4868.
If you send the form by mail, make sure it’s postmarked no later than April 15: today is the deadline for filing an extension. If you get an extension, you’ll have until Tuesday, Oct. 15, 2024, to file your return.
Where to send the form depends on where you live. Here is a list of addresses.
Gabe Hauari
What is net pay?How it works, how to calculate it and its difference from gross pay
More:You may need Form 4868 to file a tax extension. Here’s what to know as deadline looms.
What other tax deadlines fall on April 15?
Tax Day is not just the deadline to file your federal taxes for the prior year.
If you earn income that isn’t subject to withholding taxes, you’re typically required to make estimated tax payments to the IRS. The agency divides the year into four quarterly payment periods, and the first quarterly payment for 2024 is due today.
Most state taxes are also due on April 15. Residents of Massachusetts and Maine have until April 17 to file federal taxes because of state holidays. There are other exceptions.
Daniel de Visé
Where’s my refund?
You’ve already filed your tax return for 2023. You have a refund coming. You want to know where it is.
There are multiple ways to receive a tax refund, but the fastest by far is electronically, the IRS says. If you filed electronically and chose to receive your refund by direct deposit, your refund will probably be issued within 21 days. If you mailed a paper return and expect a refund, it could take four weeks or more to process your return.
Through the IRS “Where’s My Refund” tool, you can track when the IRS received your tax return, when it approved a refund, and when it issued the refund. If you chose direct deposit, the money should land in your account within five days from the date the IRS approves your refund. You can also call 800-829-1954.
Medora Lee
Should I file my taxes online or at the post office?
You’ve waited till the last day to file your 2023 tax return. The minutes are ticking by. Now, you face a choice: Should you file online, and try your luck with an overtaxed IRS website? Or should you print it out and head to the post office, risking long lines?
Neither choice is entirely safe. The IRS website famously crashed on Tax Day in 2018, prompting the agency to give frustrated taxpayers a rare one-day extension.
Long lines used to be the norm at post offices on tax day. You may still face a wait if you mail your form today. The Postal Service says some locations will offer extended hours, and suggests you call your local post office to check.
The IRS recommends electronic filing. Many tax experts agree.
“Filing tax returns electronically is typically the preferred option,” said Eric Bronnenkant, director of tax at Betterment, a financial advisory company. “Even at the last minute, it is likely better than using mail.”
Daniel de Visé
Can I file my taxes for free on Tax Day?
Yes! More people are filing their taxes using Free File this year, the IRS says.
Free File allows any taxpayer with an adjusted gross income of $79,000 or less in 2023 to file taxes for free through one of eight IRS partners. To access the service, go online at IRS Free File and use the guided software.
If you’re eligible, a free filing can save you a pretty penny. An individual taxpayer is estimated to spend 13 hours and $240 in out-of-pocket costs to prepare and file an annual tax return, according to the Taxpayer Advocate.
Medora Lee
Why is April 15 Tax Day?
April 15 might seem an arbitrary date for the entire nation to file taxes. Here’s some background:
Historical sources tell us President Lincoln first levied internal taxes in 1862, during the Civil War. The federal government adopted the modern income tax system in 1913, with the 16th Amendment. The original Tax Day fell on March 1. Congress moved the date to March 15 a few years later. In the 1950s, Tax Day was moved to April 15. The date shifts gave Americans more time to prepare their returns.
Some years, Tax Day falls later than April 15, typically because the date falls on a weekend.
Daniel de Visé
Tax Day freebies and food deals
Tax Day has its perks. Fast food and sit-down restaurants across the U.S. are offering customers freebies and discounts to celebrate the occasion.
Whether you’ve already filed your taxes and are waiting on your tax refund, or you need to file a tax extension, you can take a break and seek out free or discounted treats. A few examples:
- Krispy Kreme customers can purchase an Original Glazed or assorted dozen in shop and receive a second Original Glazed dozen for the price of sales tax in their state.
- GrubHub is offering a $15 discount on delivery orders worth $25 or more.
- Potbelly shops nationwide are offering customers a free Original sandwich with the purchase of any Original or Big sized sandwich.
Gabe Hauari
What happens if you file taxes late?
Not filing a tax return can trigger two potential penalties: one for failure to file, the other for failure to pay. Together, they can max out at 50% of the tax you owe.
Failure to file: If you miss the April 15 deadline, the standard penalty is 5% of any tax due for every month your return is late, up to 25% of the unpaid balance.
Failure to pay: If you file a return by the deadline but fail to pay taxes you owe, or if you get an extension and leave a balance unpaid, you typically face a much smaller monthly penalty of 0.5% of any unpaid amount, up to 25% of the unpaid tax.
James Powel and Emily DeLetter
How to get an extension on filing taxes
Sometimes, you just need more time.
If you can’t make the April 15 deadline, experts say, the next best thing is to seek an extension. If approved, it provides filers a six-month grace period to file, though it does not provide an extension to pay.
The deadline for filing an extension is today, April 15. If you get one, you’ll have until Tuesday, Oct. 15, 2024 to file your return.
Tax Day deals 2024:Score discounts, freebies at Krispy Kreme, Hooters, Potbelly, more
You can request a free extension through the IRS. You’ll need basic information, like your name, address, Social Security number, and estimated tax liability. Be prepared to make a payment, if you owe anything and have the funds.
Tax filers can use IRS Free File to request an extension electronically. If you prefer to mail a paper version of the extension, called form 4868, make sure it’s postmarked no later than April 15.
James Powel and Emily DeLetter
