When a significant natural disaster hits – such as a hurricane, earthquake, tornado, flood, wildfire, blizzard, or the like – the IRS will extend upcoming federal tax deadlines for affected taxpayers if a federal disaster is declared. The extended due dates apply to most federal tax returns and payments, including those for income taxes (including estimated tax payments), payroll taxes, and excise taxes. If you’re impacted by a natural disaster, check our IRS Disaster Relief page to see if you qualify for an automatic tax filing or payment extension.
Video transcript:
Is the April tax deadline approaching, or has it passed? Don’t worry—we can help! This edition of Tax Tips by TurboTax will explain your options.
If the deadline hasn’t passed, TurboTax can help you file on time via e-filing. This is the best way to avoid penalties and delays in getting your refund.
But, if you can’t complete your return on time, you can apply for an automatic extension before the deadline. File an extension for free through TurboTax Easy Extension. This gives you an additional six months to file your tax return.
Remember, an extension gives you more time to file, but not to pay. If you owe taxes, you must pay by the original tax deadline. Otherwise, you’ll face failure-to-pay penalties.
But how can you avoid penalties?
Estimate what you owe and pay it by the deadline at the time you file an extension. Follow the link in the description to TurboTax’s Taxcaster to easily get this estimate for free.
If the difference between what you owe and what you paid is within 10% of your total tax bill, the IRS may waive failure-to-pay penalties.
If you don’t owe taxes and file late, there is no penalty. However, if you’re due a refund, it might be delayed. File as soon as possible, as you usually can’t collect a refund if you file more than three years late.
If you owe tax by the April deadline, you’ll face consequences if you file your taxes late, even with an extension. The IRS will add interest to what you owe from the day your return is late until you pay in full.
In addition to interest, there's a monthly failure-to-file penalty of 5 percent of what you owe, for up to five months or until you file, with a maximum of 25 percent of unpaid taxes.
If your return is over 60 days late, the minimum penalty for 2024 returns is the lesser of $485 or 100 percent of the underpayment.
There’s also a failure-to-pay penalty, which increases your tax bill by 0.5 percent per month. This rises to 1 percent per month if you don’t pay within 10 days of an IRS levy notice. The penalty won’t be more than 25 percent of your unpaid taxes.
If you’re subject to both the failure-to-file and failure-to-pay penalties at the same time, the maximum penalty that you’ll pay for both is 5 percent a month.
Ready to file your return or an extension? TurboTax will help you e-file and get the tax benefits you deserve.
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, TurboTax will guide you step by step so you can feel confident they'll be done right. No matter which way you file, we guarantee 100% accuracy and your maximum refund.
Get started now by logging into TurboTax and file with confidence.
