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.
The IRS has already issued over 43 million tax refunds totaling $135.3 billion, with an average refund of $3,145. However, this average could change as more returns are filed. The IRS encourages taxpayers to check their refund status using the "Where's My Refund?" tool online. Despite the early refunds, only about half of the expected returns have been received, and filing for an extension can push the deadline to October 15th.
The IRS is stepping up its scrutiny of cryptocurrency. If you've traded or sold crypto, answer "yes" to the "digital assets" question on your tax return. Holding crypto for over a year can qualify you for lower capital gains tax rates. However, reporting crypto taxes can be tricky due to inconsistent or missing forms. Use personal records and seek professional help if needed. The IRS plans to introduce a standardized reporting form for digital assets in 2025.
To ensure prompt tax refunds, file a complete and correct tax return with information matching IRS records. Gather all necessary tax forms, including W-2s and 1099s. Verify your income and claim eligible deductions and credits, such as mortgage interest and tuition expenses. Review previous tax returns and consider life changes that may impact your return. Filing an accurate return initially is crucial to avoid delays from amended returns.
The IRS has launched a free tax filing program called Direct File that covers about one-third of federal tax returns. The program is currently open in 12 pilot states and supports simple tax situations. The Treasury Department estimates that 100,000 filers will participate this year. Within five years, the program could save the average filer $160 per year.
