Tax Day: What It Is, How It Works, and Special Considerations

What Is Tax Day?

Tax Day refers to the final date when individual federal tax returns and tax payments are due. Tax Day usually falls on April 15 each year in the United States. If the 15th falls on a weekend or holiday, the day is observed on the following business day. In 2024, Tax Day is April 15. Most states that levy income taxes set the same deadline for their residents to file their state income taxes. The U.S. tax season generally runs between January 1 and April 15 each year for filing and paying taxes for the previous year.

Understanding Tax Day

Tax Day is the due date for federal individual income tax returns and tax payments. For most taxpayers—in most years—federal income tax returns must be submitted to the Internal Revenue Service (IRS) by April 15. This date applies to individuals who file taxes based on a calendar year. If you use a fiscal year, then you must file your taxes by the 15th day of the fourth month after the last day of your fiscal year. For example, if your fiscal tax year ends on June 30, your federal tax return is due by Oct. 15.

Most people who earn income must file a return by Tax Day, including everyone who has an employer who deducts taxes from their paychecks. This also includes self-employed people and small business owners who must file quarterly to pay estimated taxes and then file annual returns to square up their accounts.

Retired adults file income taxes by Tax Day to account for their income from Social Security and any pensions, investment income, and retirement account withdrawals. Taxpayers who are under the age of 65 and file as married filing jointly must submit a return if their earned income in 2023 was equal to or greater than $27,700. This threshold changes to $29,200 if only one spouse is over 65, and $30,700 if both spouses are over 65.

If you need more time to prepare your tax return, you may ask for an extension. This can give you an extra six months to file your taxes, but your tax payment is still due on tax day. To request an extension:

• File an extension form with the IRS Free File tool and include your estimated payment
• Pay all or a portion of your estimated tax bill and indicate that your payment is for an extension

Your extension request must be filed on or before your original tax payment due date.

Special Considerations

When a tax filing due date falls on a weekend or a legal holiday, the deadline is moved to the next business day. The only national holiday that would affect Tax Day is Emancipation Day in Washington, D.C. It recognizes the abolition of slavery in the U.S. and is celebrated on April 16.

Your tax filing deadline may also be changed if Tax Day falls on a legal holiday in your state or in the state where you are required to file. For instance, Tax Day may be delayed in Maine and Massachusetts because of Patriots' Day (Patriot's Day in Maine), a statewide legal holiday that falls on the third Monday in April.

The IRS may also extend tax filing deadlines as part of a relief effort for rough economic times or a natural disaster. In 2021, for example, the Federal Emergency Management Agency (FEMA) declared a severe winter storm in Texas a major disaster. The IRS responded by giving residents of Texas until June 15, 2021, to file their federal individual income taxes.

In 2020, the IRS postponed the deadline for tax filings and tax payments to July 15, 2020, due to the COVID-19 pandemic. Economic hardships due to the pandemic continued into 2021, and the IRS once again extended the filing and payment deadline. Taxpayers had until May 17, 2021, to file and pay federal individual income taxes. However, the IRS did not extend the deadline for quarterly estimated payments, which were still due on April 15, 2021.

How to File Your Federal Income Taxes

Many individuals work with a tax professional or use tax preparation software to file their income taxes. Another option is the Free File Program offered by the IRS. If your adjusted gross income (AGI) is $79,000 or less, Free File offers tax preparation services through a partner site at no cost. If your AGI is above $79,000, you can use IRS Free File to prepare your taxes online for free.

File electronically if you expect a return. Individuals who do so typically receive their refund within three weeks of when the IRS receives your return. You can also choose to mail a paper return to the IRS, but it may take six to eight weeks to process.

The IRS also has a variety of services to assist taxpayers, including the Volunteer Income Tax Assistance and Tax Counseling for the Elderly, which offers free basic tax return prep help to those who qualify.

What Happens If You Miss the Deadline?

If you miss the tax filing deadline, the IRS recommends filing your late return as soon as possible to avoid a failure-to-file penalty. The IRS won’t charge a failure-to-file penalty when a refund is due. However, there is a three-year statute of limitations on refunds. If you file more than three years after your deadline, then you won’t get your money.

Individuals who miss the payment deadline may be subject to a failure-to-pay penalty along with interest charges on the amount due. An exception might be allowed if you’re experiencing hardship and file a special extension.

Try to file your taxes as early as possible to avoid missing the deadline. Start gathering your documents as soon as you receive them, and be sure to make an appointment if you’re working with a tax professional. Even if the IRS extends the due date, it might be in your best interest to file early, especially if you’re expecting a refund.

The Bottom Line

Tax Day in 2024, the date taxpayers are required to file returns based on 2023 income, is April 15, 2024. But there are several reasons why that may or may not be the tax day that everyone must follow. Check with your state to see if you are eligible for an extension for a disaster or holiday. Be sure to file an extension request if you do not intend to file your taxes on time.