The tax filing deadline for most Americans is April 15th. Those who haven't filed can still apply for an extension until October 15th, but taxes owed must be paid by April 15th. Many can file taxes for free through IRS Free File or Direct File. If someone owes a balance but doesn't file, they can expect penalties and interest. The IRS also suggests filing electronically for a faster refund.
Most taxpayers have until April 15 to file their federal taxes, but you can file for an extension that pushes the due date to October 15. Filing for an extension is free and can be done online. However, even with an extension you must still pay any estimated tax balance by the original due date to avoid penalties and interest.
If you have more than $250,000 in a bank account, recent changes to FDIC insurance coverage may affect you. Trust account limits have changed, and some investments that were previously covered may no longer be fully insured. To ensure your deposits are fully covered, consider spreading your money across multiple FDIC-insured banks or opening accounts with different ownership categories.
While it's unclear when the Federal Reserve will lower interest rates, cash savings are currently yielding the highest returns in years due to the high inflation rates. Options for savers include CDs, Treasury bills, and I bonds, offering after-inflation returns. Online high-yield savings accounts also offer high rates but may require minimum balances or limited access to funds. Consider your financial goals when choosing between locking in returns with long-term investments or the flexibility of liquid savings accounts.
A major update to the IRS Direct File program can now automatically import return verification information, preventing one of the most common filing errors. Direct File is now available in 12 states and accepts simple tax returns with limited income and deductions. By using Direct File, taxpayers can access their IRS account information to validate their returns before filing, making the process more efficient.
The federal income tax deadline is April 15th, but some taxpayers in disaster-hit areas have until June 17th. Several free tax-filing options are available, including the IRS Direct File and Free File programs. Consider claiming tax credits and deductions to reduce your tax bill. Remember, if you contributed to a retirement account or an HSA in 2023, you can still make contributions until the tax deadline to potentially lower your tax liability.
