It's Tax Day 2023, meaning there literally are just hours left to finish your Form 1040 and get it to, or at least on its way, to the Internal Revenue Service.
If you're still working on your tax return, here are five final tips for all y'all ultimate tax procrastinators.
1. File something. You need to send the IRS either your 2022 Form 1040 or Form 4868. You can submit either electronically, which the IRS recommends and is the option most taxpayers choose. That gives you until midnight in your time zone to punch send on your computer keyboard. But it's better not to wait that long. You are not alone in waiting until the 11th hour to file, and a 11:59 p.m. filing crunch could pose bandwidth problems. The last thing you want is a computer crash to make your filing late.
Folks whose adjusted gross income is $73,000 or less, regardless of filing status, should check out Free File. This year, seven participating tax software companies offer online tax return preparation and e-filing at, as the name says, no cost.
If you're an old-school tax holdout still filling out your 1040 by hand, you need to get your tax material to your local Post Office so that it gets today's postmark. The IRS accepts a Tax Day postmark as proof of timely tax filing, meaning you won't get his with late-filing charges.
2. Get more time to file. Rather than rush to file and mess up your return, you probably should, as noted in tip #1, file for an extension. Filing Form 4868 for an extension will give you until Oct. 16 to finish up your return.
During those six added months, you can make sure you file a thorough and correct return. Yesterday’s post 10 last-minute tips to help you file your tax return has ways to do just that.
3. Pay any tax you owe. If you file for an extension, note that this form is just what the title says it is: an Application for Automatic Extension of Time To File U.S. Individual Income Tax. The IRS' receipt of it will stop any non- or late-filing penalties that will kick when you don’t file a return or automatic extension request by Tax Day.
But note that it’s not an extension to pay any tax you owe. You must include any tax due, or as much of it as you can, with your Form 4868. Starting at 12:01 a.m. tomorrow, late payment charges and interest start accruing. The IRS offers a variety of ways to pay, from electronic methods to old-school paper checks. If your tax bill is surprisingly large, explore the variety of alternative tax payment methods, including an IRS-provided installment plan.
4. File and pay state taxes, too. Most Americans live in one of the 42 states or District of Columbia that collect some type of individual income tax. And most of jurisdictions’ tax departments follow the IRS' filing schedule. That means you must file and pay your state (and in some cases, local) taxes by today, too. Check with your state's tax office about possible extensions. Or if you're ready to file state returns, check into free e-filing options offered by most states.
5. Make your first 2023 estimated tax payment. Millions of filers get income that isn’t subject to payroll tax withholding. This includes investment income and, in a growing number of cases, money earned from freelance or gig work. To avoid facing a big tax bill, not to mention potential penalties and interest, when you file your annual return, you need to pay tax on that money throughout the year by making estimated tax payments, either electronically or by sending in a Form 1040-ES voucher. These are due four times a year, with the first one for each new tax year also due on Tax Day.
I know, this is a lot to deal with today. So here are the two key things to do this Tax Day 2023.
First, file an extension and pay any, even if it's just part of, tax you owe. Most states offer extensions in line with the IRS timetable, too.
Second, make your first quarter 2023 estimated tax payment. There is no extension for these payments. If you don't pay enough or on time, you could face penalties even if you true up your tax bill next filing season or even next quarter.
Here's hoping you can make it through these final hours of Tax Day 2023 in good, and tax compliant, shape.
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