April 15 has arrived, marking the important occasion of Tax Day. The Internal Revenue Service (IRS) is reminding taxpayers to file their 2024 federal returns promptly to avoid incurring penalties and to ensure they receive timely refunds. Here’s an all-encompassing guide on how to file, claim any outstanding stimulus money, and steps to take if you cannot pay your tax bill in full.
Still Time to File Electronically and Get Your Refund Fast
Taxpayers have until midnight to submit their federal tax return. The IRS recommends e-filing with direct deposit to expedite refund processing, which usually takes 21 days or less.
Key Benefits of Electronic Filing:
- Fewer errors: Tax software helps catch common errors.
- Free options available: Most taxpayers qualify for free federal e-filing.
- Direct deposit refunds: Quickest method to receive your money.
IRS Free Filing Tools:
- IRS Free File: Available for those with an AGI of $84,000 or less.
- Free Fillable Forms: Accessible for any income level; do-it-yourself electronic filing.
- IRS Direct File: Available in 25 states, allowing direct filing with the IRS.
- VITA & TCE Programs: Free assistance from IRS-certified volunteers.
- MilTax: Available for military members and some veterans, with no income limit.
Deadline to Claim the $1,400 Stimulus Check Is Also Today
Today is also the last day to claim the 2021 Recovery Rebate Credit, which encompasses the $1,400 third-round stimulus check.
If you did not file taxes for 2021 but were eligible, you must file today to claim it. Otherwise, the money will revert to the U.S. Treasury.
Who Qualifies:
- Individuals with an AGI under $75,000 in 2021.
- Married couples with an AGI under $150,000.
- Those who did not file in 2021 or did not claim the credit.
You will need your W-2 or income statements from 2021 to complete the return.
How to Check Your Refund Status
The Where’s My Refund? tool found on IRS.gov allows filers to track the status of their return within 24 hours of e-filing. This tool is also accessible via the IRS2Go mobile app.
Required Info:
- Social Security Number
- Filing status
- Exact refund amount
Note: Updates for paper return statuses may take up to four weeks.
Owe Taxes? Here’s How to Pay Today
To prevent penalties and interest, the IRS suggests that taxpayers settle any owed balance by April 15—even if they cannot pay in full.
Payment Options:
- IRS Direct Pay: Direct from your bank account at no extra cost.
- IRS Online Account: Manage balances, view history, and make payments.
- Credit/Debit Cards: Through IRS-authorized processors.
- Electronic Federal Tax Payment System (EFTPS): Accessible online or by phone.
- Electronic Funds Withdrawal: When e-filing with tax software.
- Check or Money Order: Made payable to “United States Treasury.”
- Cash via Retail Partners: Requires additional steps—initiate early.
Can’t Pay in Full? Payment Plans Are Available
If full payment is not feasible today, the IRS recommends setting up a payment plan online:
Options Include:
- Short-term plan: For balances under $100,000, pay within 180 days.
- Long-term plan: Monthly payments for balances under $50,000.
While interest will continue to accumulate, penalties may be mitigated if a payment plan is established.
Missed the Deadline? File for an Extension Today
Need more time to file? You must request an extension by tonight:
Ways to Get a Filing Extension:
- File Form 4868 through IRS Free File.
- Make an electronic payment designated for extension.
- Mail Form 4868, postmarked by April 15.
⚠️ Note: An extension provides more time to file, not to pay. You still need to estimate and pay the taxes owed today to prevent penalties.
Penalties for Late Filing or Payment
Missing today’s deadline without an extension may result in:
- Failure-to-file penalty: 5% of unpaid taxes per month, up to a total of 25%.
- Failure-to-pay penalty: 0.5% per month, with a maximum of 25%.
- Daily interest: Currently at 7%, compounded daily.
If you are due a refund, there is no penalty for late filing—but you will lose it forever if it is not claimed within three years.
Final Reminder: File Something, Pay Something
As finance expert Kevin Thompson stated:
“The only break? If you file on time and establish a payment plan, the failure-to-pay penalty reduces to 0.25% per month.”
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