According to the Internal Revenue Service, 20-25% of all Americans wait until the last two weeks before the deadline to prepare their returns. At that late date, there are only two things you can do: File your taxes pronto, or request an extension.
Not that there’s anything inherently wrong with waiting.
Whatever the reason, to avoid scrambling at the last minute, experts recommend preparing in advance by keeping yourself organized year-round with all-important documents—including receipts—maintained in one place.
Organization is key
Having everything in one place—even if it’s just a shoebox—will help make preparation of your income tax return easier. Some of the documents that might be required to complete the process include:
- Form W-2 (your employer is required to mail the form, which shows your earnings and taxes withheld, by Jan. 31)
- Form 1099-INT, for interest earned, such as from a savings account
- Form 1098, Mortgage Interest Statement, which shows mortgage interest paid on a loan for your own home
- Receipts for all purchases and payments, including those for business, healthcare and education
You will also need your Social Security number and, if you are filing jointly, you will need the Social Security number of your co-filer. Social Security numbers are also required for all listed dependents for whom you are claiming on your return.
It also helps to have a checklist of deductions that you might forget in your rush to file your return.Check out our Tax Preparation Checklist for an easily-printable list of documents to collect before preparing your taxes.
File faster online
Once you're ready, experts recommend filing your taxes electronically. Doing so can mean a more accurate tax return, a faster refund and—if every minute counts—the luxury of last-minute filing. Since 1990, nearly 1 billion tax returns have been filed, according to the IRS. The majority of individual taxpayers—70%—file electronically, either on their own or using a tax preparer.
TurboTax makes it easy to prepare and file your taxes online, which is the fastest way to get your money if you’re expecting a tax refund.
TurboTax Tip: To request an extension for filing your return, file IRS Form 4868 by the tax deadline. The form is available at IRS.gov. The IRS typically grants extensions automatically.
Avoid last-minute mistakes
The biggest problems with tax returns are often the easiest to prevent because they usually occur through carelessness. Even the simplest mistakes, however, can delay a refund.
The three most common mistakes made by flustered filers are:
- Math errors (easily prevented with a calculator or tax software)
- Incorrectly written Social Security numbers (be sure to proofread)
- Failure to sign or date the tax return
Extending the inevitable
To request an extension for filing your return, use Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return, which is available for download at IRS.gov. Extensions are generally granted automatically and you don't have to explain in your initial request why you are seeking one. The only requirement is that the extension request has to be filed no later than midnight on April 15, 2024 for 2023 taxes.
Again, TurboTax can help here. You can file a tax extension for free using TurboTax Easy Extension. It only takes a few minutes to get a few months of extra peace-of-mind.
Each year, approximately 7% of U.S. taxpayers—around 8 million people—request an extension. There is one caveat:
- An extension of time to file is not an extension of time to pay taxes owed, so be sure to pay your estimated balance—or as much of it as possible—even if you request an extension.
- Form 4868 offers a variety of payment options.You can use a calculator like TaxCaster to estimate the taxes you may owe.
If you’re worried that you can’t pay what you owe, the IRS recommends filing your taxes or extension request and then calling to discuss setting up a payment plan. The IRS also offers a payment agreement application on its website.
No matter what the reason for the wait, taxes don’t have to bring hesitation. Stay prepared year-round, consider filing online, and get familiar with the automatic extension form to avoid seasonal panic. Then sit back and welcome spring.
Last-Minute Tax Fun Facts
Question: Does your filing date determine whether you receive a refund?
Answer: Your filing date does not affect whether you are entitled to a refund.According to the IRS, however, over 70% of tax returns filed before April 1 receive refunds, while 61% of late filers end up owing money.
Want to know when your refund's coming?
Find out atIRS.govor check youre-file status herewith TurboTax.
With TurboTax Live Full Service, a local expert matched to your unique situation will do your taxes for you start to finish. Or, get unlimited help and advice from tax experts while you do your taxes with TurboTax Live Assisted.
And if you want to file your own taxes, you can still feel confident you'll do them right with TurboTax as we guide you step by step. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
FAQs
File by the deadline to avoid penalties, interest
But if you skip the tax filing deadline and owe a balance, you can expect IRS penalties and interest. For failure to file, the IRS charges 5% of your unpaid taxes per month or partial month, capped at 25% of your balance due.
How many people file taxes at the last minute? ›
Up to one in three Americans waits until the last minute to file their taxes, according to a 2021 survey by IPX 1031. That amounts to tens of millions of people. A portion of them will realize that they do not have enough time to submit their taxes by the end of Tax Day.
How do I get over tax anxiety? ›
Break down the task into manageable portions. This means spreading out the preparation of your taxes over days to ensure that you do not overlook any details. By making daily progress over a few days instead of trying to do your taxes at once, you can cut down on the tax anxiety.
How many years can you go without filing taxes? ›
Additionally, you have to consider the state you live in. For example, if you live in California, they have a legal right to collect state taxes up to 20 years after the date of the assessment!
Is it OK to pay taxes a day late? ›
Missing the tax deadline: Penalties and interest
In addition to interest charged on any tax due, you could face separate penalties for both filing and paying late. The late filing penalty is 5% of the tax due for each month (or part of a month) your return is late (tax filing extensions are factored in).
How bad is it to file taxes a day late? ›
If you owe taxes, you'll pay a penalty and interest
Filing your return even one day late means you'll still be hit with the full 5 percent penalty.
How many Americans forget to file taxes? ›
About 7 million U. S. Taxpayers fail to file required income tax returns each year, while 146 million Americans dutifully file their returns each year. That means that about 5% of the populace fail to meet their obligations to Uncle Sam.
What month do most people do their taxes? ›
Therefore, tax season is usually considered to be between Jan. 1 and April 15. During this time, taxpayers gather together their paperwork and complete their tax forms, with the use of tax preparation software or directly through IRS.gov.
What day do most people file their taxes? ›
Today may not be your actual filing deadline: Yes, April 15 is the big kahuna of tax-filing deadlines for most people.
What is the fear of taxes called? ›
“Forosophobia” is the fear of taxes and the IRS. Responses to phobias of all kinds generally involve sweating, trembling, shortness of breath, severe anxiety, etc. Along with similar physical signs, if you were looking for specific symptoms of someone experiencing forosophobia, you might notice.
For many, anxiety over filing taxes comes from fear, Farber said. Whether it's fear of making a mistake in your return or unexpectedly owing thousands of dollars, these fears can overwhelm you to the point of avoiding even looking at your taxes.
What if I am scared I did my taxes wrong? ›
If you discover a “taxable” mistake or omission on a tax return you already filed, you should amend as soon as possible. Depending on the size of the tax bill, you could reduce or avoid penalties. If you wait for the IRS or state to find the error or omission, the interest and penalties will continue to grow.
Is it better to owe taxes or get a refund? ›
“The best strategy is breaking even, owing the IRS an amount you can easily pay, or getting a small refund,” Clare J. Fazackerley, CPA, CFP, told Finance Buzz. “You don't want to owe more than $1,000 because you'll have an underpayment penalty of 5% interest, which is more than you can make investing the money.
What happens if you never file a tax return? ›
If penalties and interest aren't motivating enough and you outright refuse to file taxes, the IRS can enforce tax liens against your property or even pursue civil or criminal litigation against you until you pay.
Does IRS know if you don't file taxes? ›
The IRS continues to identify people who have a filing requirement but have failed to file a return. By law the IRS may file a substitute return for you if you do not voluntarily file. A series of letters is first sent explaining the possible action IRS may take as part of the Substitute for Return Program.
Is it better to file taxes early or late? ›
The sooner you file your tax return, the faster your data is locked down and protected against someone else trying to use it. Reason 2: Filing earlier can lead to the IRS processing your return sooner. And because most people get a tax refund, it also means you'll get your refund sooner!
What is the best time to file taxes? ›
If you expect a refund, filing well before the tax deadline will get your refund cash into your pocket faster. For best results, you can e-file and have the refund directly deposited in your bank account. If you owe money to the IRS, you might prefer to prepare your return early and wait until mid-April to file it.
When's the last time you could do your taxes? ›
The tax deadline typically falls on April 15 each year, but can be delayed if it falls on a weekend or holiday. Missing the tax deadline can have consequences like penalties and interest.
Is it better to do your taxes right away? ›
BEST TIME TO FILE: AS SOON AS YOU HAVE ALL YOUR PAPERWORK
Keep criminals' hands off your refund check by filing your tax return as soon as you have your W-2 form and other paperwork. That could mean doing your taxes in February or even earlier.
