Photo by Vitalii Abakumov on Unsplash
It’s crunch day for millions of taxpayers. In addition to finishing their current tax return, many have other April 15 tax tasks to complete. It all adds up in dollars and time spent.
Hello Tax Day!
If you’re finishing up your 2025 tax year return, I don’t want to slow you down.
You need every minute to meet today’s April 15 tax filing (and paying) deadline since you’ve probably discovered the same thing as did researchers at Yale University’s The Budget Lab. Some of the ostensibly taxpayer-friendly changes in the One Big Beautiful Bill Act (OBBBA) law meant you’ve spent more time than ever working on your taxes.
The Budget Lab says the increased tax preparation time affects every taxpayer to some degree.
The “No Tax On” provisions — that’s the OBBBA’s no tax on some tips, overtime and auto loan interest, as well as the Senior Bonus — require extra filing that adds to the burden of filing taxes. Taxpayers in the lowest quintile, i.e., taxpayers making the least income, see an almost two-hour increase in time burden, while the second lowest quintile sees roughly a 36-minute increase.
These provisions that were designed to help lower income groups save some tax dollars, and are doing that for some. But they also are putting a greater time burden on those taxpayers.
More tax time required from all: Higher earning filers also are paying a relative time cost to get OBBBA tax dollar savings.
The third through fifth income quintiles face an increase in time burden as compared to what their filing responsibilities would have been if Congress had simply extended the expiring individual Tax Cuts and Jobs Act of 2027 provisions.
This difference, notes The Budget Lab, is because of OBBBA’s higher state and local taxes, or SALT, cap. Under the prior law, a maximum of $10,000 of these itemized expenses could be claimed. OBBBA raised that to $40,000. A higher SALT cap increases the number of itemizers and therefore, the time burden.
Dollars usually trump time: I know, even in our time-crunched lives, most of us are willing to spend a few more minutes (or hours) working on our tax returns if that means a smaller tax bill or a bigger refund.
But it is always good to know as much as possible about our tax situations, including the price we pay to fulfill our filing obligations.
So, I’ll let you get back to work on your return.
And if you’ve already filed, good for you! Enjoy today while millions of your fellow U.S. taxpayers are still double-checking tax statements, reviewing form entries, and making sure they don’t overlook any tax breaks.
These last-minute filing tips might help.
Your best move today might be to follow tip #1 and instead of a Form 1040, file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return. Just remember to pay what you owe (or as much as you can) when you submit Form 4868 to get six more months to complete your tax return paperwork.
Today’s other tax tasks: Regardless of whether you’ve filed your current taxes or are enjoying a 1040-free day, you also should make sure you’ve met these other April 15 deadlines.
Here are three.
Make your first quarter 2026 estimated tax payment. Tax Day is always double Tax Day for those who get money not subject to withholding. These taxpayers must pay the tax on those amounts, which include self-employment earnings, prize and gambling winnings, and investment income, via estimated taxes. The first of these four extra tax filings/payments for the 2026 tax year is due today.
Contribute to your IRA for the 2025 tax year. Tax Day is the last day to maximize prior year IRA contributions, whether you’re putting money in a traditional IRA or a Roth version. For the 2025 tax year, you can add up to $7,000 to your traditional or Roth IRA. Taxpayers age 50 and older can contribute up to $8,000.
Not only will the prior-year contributions help bulk up your retirement account, they could mean additional tax breaks. A traditional IRA contribution could mean an immediate above-the-line tax deduction. Putting money in either type of IRA also could make you eligible to claim the Saver’s Credit, a potential $1,000 (or $2,000 if married filing jointly taxpayers both contribute and qualify) dollar-for-dollar reduction of any tax you owe.
File your 2022 tax year return to get your unclaimed refund. If you didn’t file a 2022 return in 2023 and were due a federal tax refund back then, you must do so today. April 15, 2026, is the end of the three-year filing window to get that prior year’s refund money, which the IRS says comes to a cumulative total of nearly $1.2 billion in unclaimed refunds. If you miss this chance to get your old refund, the U.S. Treasury gets to keep your money.
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