The April 15th tax deadline is a critical date for many taxpayers, but if it slipped by you, there’s no need to panic. You can still file your taxes and potentially secure your refund. Here are three practical steps you can take today to get back on track and manage any potential tax liabilities effectively.
1. File Your Taxes Now
Don’t Delay Any Further
If you haven’t filed your taxes yet, the best course of action is to file as soon as possible. For those expecting a tax refund—which accounts for nearly 80% of filers—there’s good news: there are no penalties for filing late if you’re due a refund. The quickest way to file and receive your refund is to e-file with direct deposit. This method is not only fast but also secure, ensuring you receive your tax refund within 21 days in most cases, according to the IRS.
Action Step: Access an online tax filing service to e-file your taxes. This service can expedite the processing of your return and help ensure you receive any refunds promptly.
2. Consider Filing Even If You Think You Don’t Need To
Claim Your Unclaimed Refunds
Many people overlook filing their tax returns because they fall below the income threshold ($13,850 for singles and $27,700 for married filing jointly in 2023). However, it’s often beneficial to file a tax return to reclaim any federal taxes withheld from your paycheck or to take advantage of tax credits like the Earned Income Tax Credit (EITC). The IRS reports that over $1 billion in unclaimed tax refunds are left on the table each year.
Action Step: Review your earnings and withholding for the past year. If taxes were withheld or you qualify for credits, filing a return could result in a refund.
3. Address Any Taxes Owed
Manage Your Tax Liabilities
If you owe taxes, it’s crucial to file your return immediately to minimize both failure-to-file and failure-to-pay penalties. The sooner you file, the less you’ll accrue in interest and additional penalties. For those concerned about how to pay, the IRS offers multiple payment options to accommodate different financial situations:
- Short-Term Payment Plan: This is ideal if you can pay the full amount within 180 days.
- Long-Term Installment Agreement: Suitable for those needing up to six years to pay off their tax debt.
- Offer in Compromise: An Offer in Compromise (OIC) may allow you to settle your tax debt for less than the full amount owed if you meet certain conditions.
- Temporary Delay of Collections: If you’re unable to pay, the IRS may temporarily suspend collection until your financial situation improves.
Action Step: File your tax return and then visit the IRS payment plan page to set up the payment arrangement that best suits your financial capabilities. This proactive approach can significantly reduce the stress and financial burden of tax liabilities.
Conclusion
Missing the tax deadline doesn’t have to be disastrous. By taking action promptly, you can file your taxes, claim any refunds or credits owed to you, and arrange a manageable payment plan for any taxes due. Remember, tools are designed to simplify this process, whether you choose to handle it yourself or prefer the guidance of a tax professional. For those affected by recent federally declared disasters, be sure to check for any deadline extensions that could apply to your situation, providing additional time to manage your tax responsibilities.
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