“When are taxes due this year?”
This is the question I get asked the most every new year, and sometimes even before we say happy new year. It’s a question that can evoke a mix of anticipation (hello, refunds!) and, let’s be honest, a bit of dread. But fear not! I’m here to arm you with the essential dates, insider tips, and a sprinkle of wisdom to navigate the 2024 tax season like a pro. Let’s break it down.
Important Tax Dates for 2024
Tax Day: This year’s Tax Day falls on April 15, 2024, which is the official deadline for filing a federal income tax return for 2023, except for people who live in Maine and Massachusetts who have until April 17 due to Patriots’ Day, a regional holiday.
Special Situations: Extensions are granted to taxpayers affected by disasters or other extenuating circumstances, such as severe weather events or other calamities. if you experienced any disaster or calamities do keep an eye out for specific extensions that might apply to you.
S-corporation and partnership tax returns: If you’re running a business as an S corporation or a partnership, remember that March 15 is your deadline to file taxes. Use Form 1120-S for S corporations and Form 1065 for partnerships. If you need more time, March 15 is also when you must apply for an extension.
Keep in mind, that S corporations and partnerships don’t pay taxes directly on their earnings. Instead, taxes are paid by the owners on their personal income from the business.
C-corporations: Your estimated payment for C-Corp taxes is due by April 15, 2024. If you need more time, you can extend your filing deadline to October 15, 2024, but remember to file the extension by April 15. Also, make sure to pay an estimated amount of your 2023 taxes by April 15 to avoid penalties and interest.
If for any reason you can’t make the Tax Day deadline (April 15, 2024), you have the option to ask for a six-month breather, pushing your deadline to October 15, 2024. Just remember, this extension is for filing, not paying. The IRS would still like their payments on time.
Penalties and Fees
Missed Deadlines: If you do not file your report by April 15, 2024, expect a 5% monthly penalty on what you owe, which is capped at 25%. Ouch.
Late Payment: If you make your payments to the IRS after Tax Day, it’s a gentler hit at 0.5% per month, but why give away your money unnecessarily?
You should try as much as possible to get your taxes sorted on time as it has other benefits apart from saving you money, like getting your refunds early or security benefits against identity theft.
Things to Consider
Document Deadlines: By January 31, employers should issue W-2 forms, and businesses must send out 1099 forms to freelancers and independent contractors by February 15. Ensure you have all necessary documents before filing.
Quarterly Tax Payments: For those with income not subject to withholding, remember to make your estimated tax payments quarterly. The deadlines for 2024 are April 15, June 17, September 16, and January 15, 2025.
Why Wait? Early filing means no penalties and an early refund. Plus, you beat the identity thieves to the punch and give yourself a cushion to sort out any hiccups.
To Do It Yourself or Not To? Assess your situation— as a safe rule, complex finances require the experience and magic touch of a savvy tax professional, here while straightforward cases can be handled by yourself using the free electronic filing options provided by the IRS.
New Tax Brackets and Deductions: Stay informed about the latest tax brackets and standard deductions adjustments for 2024. These changes could impact your filing strategy and potential refund.
1099-K Adjustments: Note the updated rules and thresholds for reporting payments, especially relevant for freelancers and those with diverse income sources.
With the right dates, a solid plan, and a dash of timely action, you can sail through with ease—and maybe even a bit of joy. And, if you need any help with your taxes this year, you can contact us or set up a free 15-minute call with me. Tax season doesn’t have to be a storm you weather alone. Here’s to making tax season 2024 your smoothest yet!