Tax Day 2023: Everything you need to know if you haven’t filed yet
Brady Knox
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The deadline for taxpayers to file their taxes is quickly approaching, with only one day remaining for people to do so.
Here is everything you need to know before tax day on April 18.
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What do I need to file my taxes?
Everyone needs their Social Security number, savings and investment records, tax credits, and eligible deductions. Some document requirements vary depending on one’s employment status: unemployed people will need a 1099-G, employed people will need a W-2, and self-employed people will need a 1099 form.
A detailed list of required documentation can be found on the Internal Revenue Service’s website.
Should I file my taxes online or on paper?
Filing your taxes online or on paper significantly differs in processing time and refunds. Those who file their taxes online can expect the IRS to process their form in roughly three weeks, and those who opt to have their refund deposited directly into their checking or savings account can expect it even sooner. Meanwhile, taxes filed on paper can take the IRS up to six months to process.
Are there any services that can help me file my taxes?
TurboTax and H&R Block are two popular services that do most of the filing for taxpayers for a fee. Others hire certified public accountants to do their taxes for them.
For those unwilling to pay a fee for tax help, the IRS also offers some free assistance. For those making $73,000 or less per year, the IRS provides guided tax preparation forms. The agency’s Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs provide free tax help to people who make $60,000 or less, persons with disabilities, and limited English-speaking taxpayers.
What happens if I make a mistake on my tax forms?
Generally, people who make mistakes will be audited, which means the IRS will ask for additional documentation. The agency takes it on a case-by-case basis, largely depending on the severity of the mistake.
To avoid making mistakes, filers should double-check everything, search out and collect all tax statements, and make sure they report all their income, KTVU reported.
What if I miss the deadline?
Taxpayers who are unable to meet the deadline to file may file an extension, which would push the deadline to file to Oct. 16. However, the extension only applies to filing taxes, not paying them. Taxpayers should pay their taxes by April 18 to avoid penalties.
If the deadline is missed without filing for an extension, taxpayers will have to pay a failure to file penalty, which is 5% of unpaid taxes for each month the return is late. If the deadline to pay is missed, a failure to pay penalty applies, which is 0.5% of the unpaid taxes for each month the payment is late. The penalty won’t exceed 25% of one’s taxes. However, being hit with both penalties at the same time will incur a different percentage penalty.
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How long should I keep my tax returns?
Tax experts speaking with KTVU recommended keeping returns for up to seven years, just in case of a future audit.