Important Tax Deadlines

Tax Day 2024: Key Dates and Deadlines

Like most people, you'll file taxes in 2024 for your 2023 income. While filing early can help you receive your refund sooner, the final deadline is set.

Tax Day 2024 is Monday, April 15, 2024. The IRS typically begins accepting returns in mid- to late-January each year. The sooner you start gathering documents, the better prepared you'll be.

Advantages of Filing Your Taxes Early

You have until April 15, 2024, to meet the federal tax filing deadline, but there are many benefits to filing sooner:

• ✓Faster Refund with Direct Deposit: Filing early and choosing direct deposit can speed up the process, getting your refund to you faster than waiting for a check.
• ✓Secure Your Preferred Appointment Time: If you work with a Tax Professional, filing early increases the likelihood of getting the appointment time that works best for you before spots fill up.
• ✓Protect Against Identity Theft: Filing early reduces the risk of identity thieves using your information to file a fake tax return and steal your refund.
• ✓Ensure You Claim Your Dependents: For divorced or separated taxpayers, filing early ensures you can claim your children and avoid potential disputes or delays.

Documents You Need to File Your 2023 Tax Return

Before you start filing your taxes, make sure you have all the necessary documents. Many forms, like the W-2, will be sent to you automatically by January 31 of the tax filing season.

• ✓W-2: For annual wages
• ✓1099 Forms:
  • ✓1099-INT (Interest Income)
  • ✓1099-NEC/1099-K (Self-employment/Gig Income)
  • ✓1099-G (Unemployment/Government Payments)
  • ✓1099-DIV (Dividends/Capital Gains)
  • ✓1099-R (Retirement Distributions)
• ✓Form 1095-A: For prepaid health insurance purchased through a marketplace.
• ✓Social Security benefits and unemployment compensation statements.
• ✓Income and expense records for rental property, small business, or farm (if applicable).

Understanding Deductions and Tax Brackets

Tax Deductions for 2023

Tax deductions reduce your taxable income, which can lead to a lower tax bill or a larger refund. Key standard deduction amounts for the 2023 tax year (filed in 2024) are:

• ✓Married Filing Jointly: $27,700 (up $1,800)
• ✓Single Taxpayers: $13,850 (up $900)
• ✓Heads of Household: $20,800 (up $1,400)

2023 Tax Brackets

The 2023 tax year uses seven federal income tax brackets: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your filing status and taxable income determine which bracket you fall into under this progressive tax system.

How to File a Tax Extension and Avoid Penalties

If you cannot file by April 15, 2024, you can request an extension to avoid the late-filing penalty.

• ✓Extension Form: File IRS Form 4868 to request an extension.
• ✓New Deadline: This grants you an extension until October 15, 2024, to submit your tax return.
• ✓IMPORTANT: Any taxes owed for 2023 are still due by April 15, 2024. You must pay or arrange a payment plan by this date to avoid penalties and interest, even with an extension.

Penalty for Missing the Tax Filing Deadline

For federal taxes, the late-filing penalty is 5% of the unpaid taxes per month, up to a maximum of 25% of the unpaid taxes. This penalty is typically higher than the late-payment penalty.