Last minute taxes! Your resources to file before deadline

The filing deadline for tax season 2024 is April 15. At the time of writing this, you only have this weekend to file your taxes before they are considered late. 

If you’re not going to make it before that deadline, though, you still have options. 

How can I file my own taxes?

Maybe you’ve put off filing taxes because you’re panicking over it a little. It’s understandable: maybe you have a more complex situation for the first time this year. Maybe you know you’re going to owe the IRS some money, and you’re just trying to delay the inevitable. 

Filing your own taxes doesn’t have to be scary. 

Pull together documents from all sources of income you had for the year: your job, the weekends you drove for Uber, any investment income you had.

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Gather proof of any deductible expenses: home mortgage interest, out-of-pocket medical expenses, property taxes, or charitable donations. 

If you had health insurance from the Marketplace (Obamacare), you’ll need proof of that, too. 

The various tax forms and instructions are intimidating, but you can use any number of tax preparation softwares – even for free.

I’m afraid I’m going to be late. What are my options?

Speed up calculations

There are all sorts of tax calculators online to determine if you qualify for different tax statuses, or approximate how much you will owe or be refunded. While this can’t serve in place of the official documents, these tools can help you through sticky places in your return. 

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Take legal shortcuts

If you don’t feel like calculating all your deductions, you can claim the standard deduction. This cuts down on the time – and paperwork – needed to file your taxes. 

Most people get the most benefit from the standard deduction anyway, but this relieves you of the need to save receipts and calculate totals.

File an extension

Did you know you can ask for more time to file? If you want to avoid penalties, and truly do not have your documents together, you can file this form. This gives you an extra six months, until October 15th, to file your tax return. 

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Note that this gives you more time to file, not more time to pay.

If you need more time to file and suspect that you owe money, you still have to use a tax estimate calculator to see how much you owe, and mail your payment with your tax extension request. 

I know I’m going to be late. What happens now?

Payment plans

If you owe the IRS money and are not able to pay your amount due by the deadline, the IRS allows you to set up a payment plan. 

You can apply for a short-term (less than 180 days) or long-term (less than 3 years) payment plan, and set up automatic monthly payments online.

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Setting up a payment plan protects you. You will still owe interest on the amount due, but you will not have extra late fees. Having a payment plan in place also means that the IRS cannot place a lien on any of your property for the amount you owe.

Late penalties and fees

If you don’t file your taxes, you will be subject to both a Failure to File and Failure to Pay penalty, plus interest. If you file the return, but don’t pay what you owe, you will only incur the failure to pay penalty and interest. 

• The Failure to File penalty is 5% of your balance due, for up to 5 months late, for a total penalty of up to 25% of your balance. 
• The Failure to Pay penalty is 0.5% of your balance due per month or part of the month that it is late, up to 25% of your total balance. 

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You will also owe interest on your unpaid taxes. This interest rate is variable and is based on the current Federal Reserve interest rate.

The IRS imposes interest on overdue taxes. This interest rate is calculated by adding 3% to the short-term federal interest rate, which presently stands at 7%. The rate is subject to quarterly adjustments, with interest being compounded on a daily basis.

When should I worry about jail time?

Generally, the IRS does not jail citizens for unpaid taxes. Tax fraud? That’s another story – but one outside the scope of this article. 

Now that we’ve taken that weight off your mind, here’s what can happen. 

The IRS can (and will) put a lien on your property, garnish your wages, or seize other assets you have, like retirement accounts, in order to cover your unpaid tax debt. 

You might not be going to jail, but life isn’t going to be very pleasant. 

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And we can’t leave this important topic without putting in a word for those vulnerable to financial abuse. 

Partner complicity?

If your spouse incurred a significant tax debt without your knowledge, you can protect yourself. The IRS allows spouses to file for innocent spouse relief in these cases, which can protect your half of marital assets and future tax refunds from liens and garnishments. 

You’ll be fine (… I suppose)

Taxes are one of the hallmarks of adult life, so if you’re reading this, and care about it,  congratulations – you’re an adult. You will get through tax season this year, and every year. I believe in you. 

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