The 2024 tax season, covering the 2023 tax year brings its own set of deadlines and requirements for taxpayers. This detailed guide will explore key dates for tax returns, extensions, and IRS interactions, providing valuable insights for both individual and business tax filers.
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π Important Tax Deadlines for the 2023 Tax Year
For the 2023 tax year, the primary deadline for filing federal income tax returns is April 15, 2024. This crucial date applies to most taxpayers, including those with tax liabilities for 2023. However, if April 15 falls on a weekend or holiday, the deadline may be extended to the following business day.
Taxpayers can also request an extension to file their returns, which can give them an additional six months to submit their tax forms. It’s important to note that while an extension to file may be granted, any taxes owed must still be paid by the original deadline of April 15 to avoid penalties and interest.
Additionally, the deadline to make any contributions to individual retirement accounts (IRAs) for the 2023 tax year is also April 15, 2024.
Taxpayers should be aware of these key dates and plan accordingly to ensure they meet their filing obligations and avoid any potential penalties or interest charges. It’s also advisable to start gathering necessary tax documents and information well in advance of the deadline to avoid any last-minute stress or complications.
If an extension was requested, October 15th, 2024 is the deadline for the extended individual tax returns. By October 15, 2024, extended individual tax returns must be filed if an extension was requested.
π Tax Returns Due Date: What Does It Mean for You?
April 15, 2024, is the due date for filing individual income tax returns and making tax payments for the 2023 tax year. If you require more time to file, you can request an extension, but remember that this does not extend the time to pay any tax due. The deadline for submitting personal income tax returns and paying taxes for the 2023 tax year is April 15, 2024.
If you need extra time to file, you can ask for an extension, but keep in mind that it does not extend the deadline for paying any taxes owed. Please remember that failing to file and pay your taxes on time can result in penalties and interest, so it’s important to plan ahead and ensure you meet the April 15 deadline.
If you anticipate that you will owe taxes but are unable to pay the full amount by the deadline, you should still file your return and pay as much as you can to minimize any penalties and interest.
π Key Due Dates for Filing 1099 IRS Forms in the 2024 Tax Season
For the 2024 tax year, which pertains to the 2023 financial year, there are specific deadlines for filing 1099 forms. The 1099 forms are used to report various types of income other than wages, salaries, and tips. Here are the key deadlines:
- January 31, 2024: This is the deadline for filing most 1099 forms, including 1099-NEC (Nonemployee Compensation). This form is used to report payments to independent contractors and must be filed with the IRS and sent to the payee by this date. It’s important to note that the 1099-NEC replaced the 1099-MISC for reporting nonemployee compensation starting with the 2020 tax year.
- February 28, 2024: If you are filing 1099 forms on paper (other than 1099-NEC), this is the deadline for filing them with the IRS.
- March 31, 2024: For those who choose to file 1099 forms electronically (other than 1099-NEC), this is the deadline for filing them with the IRS.
Remember, the deadlines for sending copies of the 1099 forms to the recipients are typically earlier than the deadlines for filing them with the IRS. For most types of 1099s, including 1099-MISC for rents, royalties, and other types of income, and 1099-DIV for dividends and distributions, the recipient copy must usually be sent by January 31 as well.
Always verify these dates as they can change due to weekends or holidays, and the IRS may update filing requirements or deadlines. It’s also a good practice to consult with a tax professional or refer to the IRS’s official website for the most current information.
β Consequences of Missing the Tax Deadline
As April 15th, 2024 approaches, taxpayers must understand the consequences of not meeting this key deadline for filing their 2023 tax returns. Missing the April 15th deadline can lead to various penalties and additional charges, depending on individual circumstances.
π« Penalties for Late Filing and Payment
If you miss the deadline without filing for an extension, the IRS imposes a failure-to-file penalty. This penalty is usually 5% of the unpaid taxes for each month or part of a month that a tax return is late. However, this penalty will not exceed 25% of your unpaid taxes. If you file more than 60 days after the due date, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less.
There’s also a failure-to-pay penalty if you donβt pay the taxes you owe by April 15th. This penalty is generally 0.5% of your unpaid taxes for each month or part of a month after the due date. Like the failure-to-file penalty, this can accrue up to a maximum of 25% of your unpaid taxes.
π« Interest on Unpaid Taxes
In addition to penalties, interest accrues on any unpaid tax from the due date of the return until the date of payment. The interest rate is determined quarterly and is typically around 3% to 5%.
π« Options If You Can’t Pay in Full
If you can’t pay the full amount owed by April 15th, it’s still important to file your return or an extension to avoid the failure-to-file penalty. The IRS offers payment plans and installment agreements that can help manage your tax liability. These plans allow you to pay over time, although penalties and interest will still accrue on the unpaid balance.
π« Importance of Filing for an Extension
To avoid penalties, if you know you can’t meet the April 15th deadline, itβs advisable to file for an extension using Form 4868. This will give you until October 15, 2024, to file your tax return. However, it’s important to note that an extension to file is not an extension to pay. You should estimate and pay any owed taxes by the April 15th deadline to minimize interest and penalties.
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π Tax Due for Independent Contractors and Businesses Ready to File Taxes
For those who are self-employed or own a business, estimated tax payments may be required throughout the year. These payments help cover your tax liability and avoid underpayment penalties.
To determine if you need to make estimated tax payments, you should consider if you expect to owe at least $1,000 in taxes after subtracting your withholding and refundable credits, and if your withholding and refundable credits are expected to be less than 90% of your current year’s tax liability or 100% of the prior year’s tax liability (110% if your adjusted gross income is over $150,000).
If you need to make estimated tax payments, you can use Form 1040-ES to calculate and pay them. The deadlines for estimated tax payments are typically:
- April 15,
- June 15,
- September 15,
- January 15 of the following year.
π Business Tax Deadlines 2024
πΉ Sole Proprietorships and Single-Member LLCs
- Tax Form: Schedule C (Form 1040)
- Original Deadline: April 15, 2024
- Extension Deadline: October 15, 2024
These entities can file for an extension using Form 4868, which extends the time to file their personal tax return, including the Schedule C.
πΉ Partnerships and Multi-Member LLCs
- Tax Form: Form 1065
- Original Deadline: March 15, 2024
- Extension Deadline: September 16, 2024
Partnerships and multi-member LLCs can request an extension using Form 7004, which gives an additional six months to file their returns.
πΉ S Corporations, S Corp
- Tax Form: Form 1120S
- Original Deadline: March 15, 2024
- Extension Deadline: September 16, 2024
S Corporations can also use Form 7004 to request a six-month extension for filing their tax returns.
πΉ C Corporations, C Corp
- Tax Form: Form 1120
- Original Deadline: April 15, 2024 (for calendar year corporations)
- Extension Deadline: October 15, 2024 (for calendar year corporations)
For fiscal year corporations, the extension deadline is the 15th day of the tenth month following the end of their fiscal year. C Corporations use Form 7004 to request a six-month extension for filing their corporate tax returns.
πΉ Tax-Exempt Organizations
- Tax Form: Form 990
- Original Deadline: May 15, 2024 (for calendar year organizations)
- Extension Deadline: November 15, 2024 (for calendar year organizations)
For organizations with a fiscal year, the extension deadline is the 15th day of the eleventh month after the end of their fiscal year. Tax-exempt organizations request an extension using Form 8868, providing an additional six months to file.
Remember, while these extensions grant additional time to file the tax returns, they do not extend the time to pay any taxes due. Taxes owed are still due by the original deadline to avoid interest and penalties. For specific situations, or if the business has a unique fiscal year, it’s always advisable to consult with a tax professional or accountant. Additionally, staying updated with the IRS or relevant state tax authorities is crucial for the most current information on filing dates and requirements.
π Key Takeaways
- April 15, 2024: Main deadline for filing federal taxes for the 2023 tax year.
- Extension Option: October 15, 2024, is the extended deadline for those filing late.
- Follow IRS Rules: Adherence to IRS guidelines is crucial for accurate filing.
- State Tax Awareness: Be mindful of your state’s tax deadlines and regulations.
This comprehensive guide aims to demystify the 2024 tax season, helping taxpayers navigate important deadlines, adhere to IRS regulations, and prepare effectively for their 2023 tax obligations.
β Conclusion
Tax season is an important time for individuals and businesses to review their finances and ensure compliance with the law. To avoid penalties and interest charges, it is crucial to stay informed about important tax deadlines, such as tax day and estimated tax payment due dates.
Understanding one’s tax situation is essential for financial planning, whether it is getting a tax refund or making a federal tax return. Proper tax preparation, including accurate tax withholding and timely filing, can help individuals and businesses avoid potential issues with the IRS.
π Need help getting your taxes ready?
π At Wave Tax we can give you advice on everything related to you and your companyβs taxes. Contact us at info@wavetax.us