As the tax deadline approaches, those still working on their filings are urged to remember that even if they file for an extension, taxes owed must still be paid by the original deadline. Additionally, making last-minute contributions to retirement accounts can still reduce taxable income for the current tax year. The IRS offers free resources for filers, including a search page with FAQs and options for submitting extensions, helping to ease the process for last-minute filers.
If you are filing an extension, be aware that taxes are due on the original tax deadline although you are filing an extension. Although the penalty for 'Failure-to-Pay' is less than the 'Failure-to-File' penalty, the penalty and interest can add up if you wait until later to pay your taxes you owe.
Making a last-minute contribution to these accounts still can count for the 2024 tax year until April 15th. Just be sure you note it as a 2024 contribution when you make it.
Additionally, anyone can use IRS Free File to submit an extension of time to file regardless of their income.
The IRS has a searchable FAQ page with links to almost 60 questions and answers, including 'Should I file an amended return?' and 'How do I correct an excess salary deferral to my 401(k)?'
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