When is Tax Day in 2024?
From completing the right IRS forms to ensuring you don’t make common tax filing errors, there’s a lot that goes into ensuring you don’t miss Tax Day - the tax deadline in the US.
Tax Day is the tax deadline for filing taxes in the USA. in 2024, and it falls on April 15th.
There are other tax deadlines applicable to individuals and businesses.
Effective tax planning can ensure you don’t miss deadlines and incur penalties.
It’s important to avoid common mistakes when filing taxes, as this can delay refunds or lead to penalties.
What is Tax Day?
Tax Day is the official US deadline for tax filings and payments that comes around once a year, typically on April 15th. If April 15th falls on a weekend or public holiday, the IRS will announce an extension.
April 15th, 2024, falls on a Monday, so there will be no need for a tax day 2024 extension to file 2023 submissions. Tax Day needs to fall on a regular date so that people can prepare for it accordingly and ensure that no tax payments are missed.
When are taxes due in 2024?
In 2024, taxes are due on April 15th. But Tax Day is just one of several tax-related deadlines in the US. In addition to this important day, there are multiple other due dates for filing taxes that relate to different industries and positions from a legal and professional standpoint.
Below are listed all of the important tax deadlines for 2024:
January 16th: Fourth-quarter estimated payments due
January 23rd: IRS begins accepting tax returns
January 31st: Filing of most 1099 forms (including Nonemployee Compensation)
February 28th: Filing of paper-based 1099 forms
March 31st: Filing of electronic 1099 forms
April 15th: Tax Day
June 17th: Filing of tax returns
October 15th: Late filing deadline
Why is effective tax planning so important?
Effective tax planning is extremely important for several reasons. Not only does it mean your financial affairs remain up-to-date and organized, but it also prevents you from incurring various fees and penalties for missed payments.
Reduced tax bills: There are financial repercussions for those who do not pay their tax bills on time. By developing and sticking to an effective tax plan, you can avoid being liable for these additional costs.
Less taxation for your heirs: Unpaid taxes become more expensive over time. If you die without a stable tax history, your descendants will likely need to cover outstanding costs.
Peace of mind: It’s no secret that taxes can be stressful, but they can become much easier and less intimidating once you have a plan in place. By tackling taxes on time, you can rest assured that you’ve done your part as a tax-paying individual.
Estate planning flexibility: If you have heirs, you can lessen the amount of paperwork they have to get through after your death by ensuring all tax-related affairs are in order.
Maximizes returns: Effective tax planning plays a crucial role in helping you manage the general cost of living. Whether you manage investments, estates, corporations, or just your own life, paying taxes properly and on time will always be conducive to optimized financial returns.
What are some common mistakes when filing taxes?
If you’ve ever felt confused or overwhelmed when dealing with taxes, you’re not alone.
With the right planning and assistance, they can be easier to navigate. Here are five common mistakes people make when filing their taxes:
Filing too early or too late: Not having a clear understanding of tax deadlines can have serious consequences, and it’s a problem that many people face annually.
Filling in the wrong forms: The IRS has dozens of different tax-related forms, and almost none are interchangeable. It is crucial to always ensure the form you are filling in is the right one for your position and needs.
Incorrectly filled-in forms: Incorrect bank account numbers, misspellings, or simply inserting the wrong date are common errors during tax season.
Not paying taxes: Virtually no adult earner is exempt from paying taxes. Never assume that you are the exception rather than the rule.
Not hiring a professional: If you lack experience dealing with taxes or are too busy to handle them alone, hiring a financial advisor can make a tremendous difference.
What is the IRS?
The Internal Revenue Service (IRS) is the United States federal government revenue service. It is responsible for helping American citizens understand, manage, and meet their tax-related responsibilities throughout the year.
The IRS collects tax money on behalf of the government and allocates it accordingly for various government-funded projects such as improving and maintaining public infrastructure, funding public services, and financing welfare programs.
What IRS forms are required in 2024?
The IRS forms required for each person will depend on personal circumstances and income and what kind of taxes they are paying. However, the most common types of IRS tax forms include the following:
Form 1040: For basic employee tax returns
Form W-2: For informing about employee salary changes
Form 1099 NEC: For freelancers who have done contract-based work in 2022
Form 1099 K: For freelancers who work for an agency such as Lyft or Uber
Other 1099 forms: For investors – used to report on dividends from investments
Form 1098: For those who pay a mortgage on a home they own
Knowing which forms to fill in and when is crucial for everyone as tax season approaches. As your professional and financial positions change, you may need to fill in different forms applicable to your new circumstances.
A tax outlook for 2024 and beyond
Taxes can change year-on-year depending on inflation and other economic patterns.
In November 2023, the IRS announced new tax brackets for the 2024-2025 season based on annual inflation. The new tax brackets will include a 5.4% bump in income thresholds to reach each new bracket while avoiding bracket creep. This bump is lower than last year's 7% increase, but it is still higher than the previous years when inflation was lower than the current rate of 3.7%.
The amount of money a person is required to pay in taxes is also circumstantially dependent, taking into account salary, asset ownership, and other legal details.
While Tax Day 2024 is April 15th, there are many other tax-related dates to remain aware of, and every wage-earner in the US benefits from ensuring they are well-informed at all times.
Need help filing your taxes?
Filing your taxes is a fundamental part of life. With the US Tax Day for 2024 fast approaching, having an effective tax planning strategy is vitally important. With the right strategy and know-how, you can ensure you file your taxes correctly and avoid missing deadlines and incurring penalties.
If you want a financial advisor to help manage your finances, let Unbiased match you with a professional who can offer guidance and support.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.