When is Tax Day?
· Tax Day for the 2023 tax year is April 15, 2024.
· With an extension, the deadline to file your tax return for the 2023 tax year is Oct. 15, 2023.
· Filing after the deadline can cost you. The IRS can assess a failure-to-pay penalty worth up to 25% of your unpaid tax. And if your return is more than 60 days late, the IRS assesses a minimum tax penalty of $210 or 100% of the tax you owe, whichever is less.
Tax deadlines for making quarterly estimated payments in 2024
The IRS requires quarterly estimated tax payments from many people whose income isn’t subject to payroll withholding taxes (usually the self-employed, independent contractors or people with investment earnings). For estimated taxes, the year is divided into four payment periods. Each period has its own payment due date.
Payment period Tax deadline
Jan. 1 – Mar. 31 April 15
April 1 – May 31 June 15
June 1 – Aug. 31 Sept. 15
Sept. 1 – Dec. 31 Jan. 15
Six tax moves to consider before the tax deadline
1. File your 2021 tax return (yes, 2021)
If you were due a refund for the 2021 tax year but didn’t file a tax return, you have until the April tax deadline to submit that old Form 1040 and claim your money. So if you haven’t filed, get to work! Miss the 2023 tax deadline, and the U.S. Treasury gets to keep your money. In 2018, the IRS had more than $1 billion in unclaimed refunds waiting for hundreds of thousands of taxpayers who hadn’t filed their 2014 federal returns.
2. Maximize Your 401(k) ContributionUpping your 401(k) contribution might be a challenge in a year of soaring inflation, but it’s still one of the best moves you can make at the end of the year. Doing so bolsters your tax-deferred retirement savings and gives you a chance at more free money through employer matches. TurboTax recommends putting the maximum amount of money into your 401(k) before the end of the year. The contribution limit for 2023 is $20,500 for those under 50 and $27,000 for those 50 and over who are allowed catch-up contributions.
3. Contribute to or open an IRA by Tax Day
· Contributions to a traditional IRA can be tax-deductible. See all the rules here.
· You have until the April 15, 2020, tax deadline to contribute to an IRA, either Roth or traditional, for the 2021 tax year.
· The 2021 maximum contribution amount for either type of IRA is $6,000 — or $7,000 if you’re age 50 or older.
4. Contribute to your Health Savings Account by April 15
· April 15, 2024 is the deadline to put money into an HSA for the 2023 tax year.
· This medical account, available to individuals who have a high-deductible health plan, provides a tax-saving way to pay for out-of-pocket costs.
· The 2023 limits are $3,500 for an individual HSA owner and $7,000 for a family.
5. Cash In Investment Losses If your stocks have taken a beating this year, one way to recapture some of those losses is through “tax-loss harvesting.” This basically means selling investments at a loss and then subtracting that loss from any capital gains you had from selling other investments, CNBC reported. When your losses exceed your gains, you can deduct up to $3,000 a year from your regular income and carry forward any extra losses indefinitely.
6. When are taxes due in your state?
Be sure to find out. Most taxpayers face state income taxes, and most of the states that have an income tax follow the federal tax deadline. Ask your state’s tax department for its due dates and how to get an extension, if necessary. And if you live in Alaska, Florida, Nevada, South Dakota, Texas, Washington or Wyoming, enjoy your totally state-income-tax-free status and focus on your federal filing.