Tax season 2024: Key dates, filing tips, and refunds explained

The 2024 Tax Season: What You Need to Know

The⁣ 2024 tax season is officially ​underway! The IRS began accepting tax returns on Monday, Jan. 29, and will continue to do so until ⁢April 15. Here’s everything you need to know before Tax⁢ Day.

Online or Paper Filing?

While ⁤you can still fill ‌out a tax form by hand and mail it in, we highly recommend ⁢filing your taxes electronically. It’s not​ only faster ⁢but also safer. If you choose to⁣ file a⁢ paper tax return, it can take up to eight weeks to receive your refund. However, if ‌you file⁣ online, ​the IRS can process your forms in as little as three weeks, and even faster if ⁤you⁤ opt for direct ‍deposit.

According to the IRS, refunds are typically issued within ⁣21 days. So, if you file your taxes electronically on Jan. 29, ‌the earliest you can expect to receive your refund is Feb.‍ 19.

What Documents Do I ⁢Need?

Whether ​you’re filing ⁣your taxes ⁢yourself or‌ seeking help from a tax preparer, you’ll need certain documents depending on your ⁣employment status. Everyone must ⁤have their Social Security number, as well as their spouse’s and dependents’ if applicable. Additionally, you’ll need your⁢ federal and state income tax information from the previous year.

If you’re employed, you’ll need a W-2 form. Unemployed individuals will require a 1099-G, while self-employed individuals will need a ⁤1099 form.

For a comprehensive list of all ‍necessary tax ⁣documents,‌ visit the IRS website.

Consequences of Missing the Deadline

If you fail to⁤ file⁢ your taxes‌ or miss the deadline without requesting ⁤an extension, you’ll ⁢be subject⁢ to a failure to ‌file penalty. This penalty amounts to 5% ⁤of your unpaid taxes for each ‍month ⁤your return is late. Additionally, if you miss the deadline ‍to pay, a failure to pay penalty applies, which is 0.5% of the unpaid taxes for each month your payment ⁣is late. The combined penalty won’t exceed 25% of your taxes, but both penalties incurred simultaneously will result in a different percentage penalty.

You can⁣ file for a tax extension⁢ by Tax Day, which grants you an ⁢additional six months to file.⁢ However, keep in mind that you’ll still need to pay your taxes on the original due ‌date.

Child Tax Credit and Its⁢ Impact

If the child tax credit expansion is enacted, families could potentially receive a tax cut of $680 for 2023, according to the Urban-Brookings Tax Policy Center.

Will Your Tax Refund Be ‌Bigger in 2024?

This year, taxpayers may ⁢see larger refunds, especially if their⁤ income didn’t keep‍ up with inflation and pushed them into a higher tax bracket. Mark Steber, the chief tax information officer at Jackson Hewitt, stated that ⁤some individuals could experience a 10% increase​ in tax refunds this year. This is a welcome change for taxpayers who⁤ saw a 2.6% decrease in tax refunds last year. In 2023, the average tax refund was $3,167, as reported by CBS News.

For more information, click here ‌to read the full article from The Washington Examiner.

What forms or documentation do employees need to gather in order ​to report their ‍earnings and taxes withheld for the year?

If you are an employee, you will need your W-2 ‌form, which shows your earnings and taxes withheld ⁢for the year. Additionally, if you have any⁤ other sources of income, such as freelance work or rental properties, you will‍ need⁣ any relevant forms⁤ or documentation to report that income.

If you are self-employed, you will need to gather your business records, including receipts, invoices, and records of ⁢any expenses related to your business. You may also need to provide⁢ a schedule of your income and expenses.

For those who have investments, you will need any forms related to those investments, such as 1099 forms for dividends or capital gains.

It’s essential to keep all these documents organized ⁣and ‍readily accessible when it’s time to file your taxes. Having everything prepared in⁤ advance⁤ will make the filing process ‍smoother and​ more efficient.

Changes to Tax Laws

It’s⁣ crucial to stay informed about any changes to tax laws that may affect your tax ⁣return for the 2024 tax year. The ⁤tax code ‍is subject to revisions and updates, and being aware of any changes can help you maximize your deductions and ⁢credits.

For the 2024 tax season, there are a few notable changes to be aware of:

1.⁤ Standard Deduction: The standard deduction has increased slightly, so if you do not ⁣itemize your deductions, you may be able to reduce your taxable income by a higher amount.

2. Tax Brackets: The income ranges‌ for each tax bracket have been ​adjusted ‍for inflation. Make sure‍ to check the updated tax brackets to ensure you are aware of your marginal tax rate.

3. Retirement Contributions: The annual contribution limits for retirement accounts, such as 401(k)s and IRAs, have increased. Take advantage of these increased limits to save more for your future retirement.

It is always advisable to consult with a tax professional ‍or utilize available resources to keep up⁣ with any changes to the tax laws that may impact ⁢your specific situation.

Important Deadlines

The deadline to file your federal tax return⁤ for the 2024 tax ‌season is April 15, 2024. However, if you need more time, you can file for an ​extension. Keep in mind that an extension only⁢ applies to the⁣ filing deadline, not the payment ‌deadline. If you ⁢owe taxes, you are still required to pay by the original ‍deadline⁤ to avoid penalties and interest.

If you choose to file an extension, ‌the new deadline to submit your tax return will be October 15, 2024. However,⁢ it is recommended to file your taxes as early as possible to avoid any last-minute stress and to ensure a timely refund if applicable.

Conclusion

As the⁤ 2024 tax season begins, it’s important ⁤to be well-prepared and informed. Filing your‍ taxes ‌electronically,‌ gathering all necessary documents, staying updated on tax ‍law changes, and meeting important deadlines are key to a smooth tax season.

Remember to consult with a tax ⁤professional for personalized⁤ guidance‍ and to ensure you are taking full advantage of any deductions and credits available to you.⁢ By taking the time to ‍properly prepare and file your taxes, you can have peace of mind and potentially receive a timely tax refund.

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