If you want to avoid the stress of the looming tax deadline, start getting organized as soon as possible.
More Tax News:
— April 15 is the last day to submit tax returns for 2023. If you left your tax filing to the last minute, you’re not alone. The IRS says it has received more than 100 million tax returns, with tens of millions more expected.
If you need more time, today is also the deadline to file an extension, which will give you until Oct. 15 to file your taxes.
Whether it’s your first time filing or you’ve been doing it for years, here are some key things to know about tax season:
WHEN IS THE DEADLINE TO FILE TAXES?
Taxpayers have until April 15 to submit their returns from 2023.
HOW DO I FILE FOR AN EXTENSION?
If you run out of time to file your tax return, you can file for an extension. However, it is important to remember that the extension is only to file your taxes, not to pay them. If you owe taxes, you should pay an estimated amount before the deadline so you avoid paying penalties and interest. If you expect to receive a refund, you will still receive your money when you file your taxes.
You can file for an extension to Oct. 15 through your tax software or preparer of preference, the IRS Free File tool or via mail.
WHAT DO I NEED TO FILE MY TAX RETURN?
While the required documents might depend on your individual case, here is a general list of what everyone needs:
Social Security number
—W-2 forms, if you are employed
—1099-G, if you are unemployed
—1099 forms, if you are self-employed
—Savings and investment records
—Any eligible deduction, such as educational expenses, medical bills, charitable donations, etc.
—Tax credits, such as child tax credit, retirement savings contributions credit, etc.
To find a more detailed document list, visit the IRS website.
Tom O’Saben, director of tax content and government relations at the National Association of Tax Professionals, recommends gathering all of your documents in one place before you start your tax return and also having your documents from last year if your financial situation has drastically changed.
O’Saben also recommends taxpayers create an identity protection PIN number with the IRS to guard against identity theft. Once you create a number, the IRS will require it to file your tax return.
HOW DO I FILE MY TAXES?
You can either file your taxes online or on paper. However, there is a big time difference between the two options. Paper filing can take up to six months for the IRS to process, while electronic filing cuts it down to three weeks.
WHAT IS DIRECT FILE?
The IRS is piloting a program where you can file your federal taxes online for free called Direct File.
