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With Tax Day looming on April 15, millions of Americans who haven’t yet filed their 2024 tax returns still have time. Despite recent upheavals at the Internal Revenue Service (IRS), tax professionals report that returns are processed smoothly, and refunds are issued without major delays.
Key Deadlines and Exceptions
The federal tax filing deadline remains April 15, with exceptions for those affected by natural disasters such as recent wildfires in California or storms in Kentucky and West Virginia. Taxpayers in these situations may qualify for automatic extensions. State deadlines may also vary, so checking local tax agency websites is advisable.
Missing a W-2? Here’s What to Do
If you haven’t received your W-2, contact your employer immediately. Many companies now provide digital copies via online portals. If that doesn’t work, the IRS can request the form on your behalf. Taxpayers can estimate their wages using their final 2024 pay stub and submit Form 4852 with their return if all else fails.
Last-Minute Strategies to Reduce Your Tax Bill
Even at this late stage, there are ways to lower your taxable income for 2024:
- Contribute to an IRA: Contributions to a traditional IRA made before April 15 can still be deducted from 2024 taxable income, with limits of $7,000 ($8,000 for those 50 and older).
- Fund a Health Savings Account (HSA): Those with high-deductible health plans can contribute up to $4,150 for individual coverage ($1,000 extra for those 55 and older), reducing taxable income.
- 529 College Savings Plans: While no federal deductions apply, eight states allow contributions up to the tax deadline to qualify for a state tax break.
Need More Time? File for an Extension
Taxpayers who aren’t ready to file can request an extension using Form 4868, which grants until October 15 to submit a return. However, this does not extend the deadline for paying any taxes owed. The IRS recommends estimating and paying what you can by April 15 to avoid penalties, which accrue at 0.5% per month on unpaid balances.
Haven’t Filed for 2021? Time is Running Out
For those owed refunds for the 2021 tax year, the three-year window to claim them closes on April 15, 2025. The IRS estimates that over one million people still have unclaimed refunds from 2021, with an average of $781 per person. Pandemic-related tax credits could mean even larger refunds for eligible filers.
Free Filing Options Available
The IRS offers several free filing options:
- Direct File: Available in 25 states for qualifying taxpayers.
- Free File Program: Open to individuals earning $84,000 or less, providing access to partner tax software.
- Free Fillable Forms: Available to all taxpayers regardless of income.
With the deadline fast approaching, now is the time to gather your documents, review deductions, and ensure your tax return is filed correctly and on time.
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