1 week Ago By Josh Cain
TIME is running out for Americans to file their tax returns before the April 15 deadline. The deadline to file tax returns is approaching, and there are a few key points to remember before it arrives. The tax season has been impacted by rising costs and major product shortages.
As a result, many Americans are uncertain about their potential refunds and what details they need to watch for. The IRS offers many lesser-known exceptions and loopholes. One key exception to be aware of when filing taxes is that certain regions follow different guidelines.
READ MORE ON TAXES For example, roughly 10 million Los Angeles residents have been granted an extension until October 15. DISASTER RELIEF The extension is due to the devastating wildfires that hit the city in early 2025. Wildfire damages and recovery may prevent affected residents from filing their taxes, so the extension offers them more time to get their affairs in order.
Those in other designated 2024 disaster zones won’t need to meet the usual requirement of personal casualty losses exceeding 10% of their adjusted gross income. Most read in Money These individuals are also allowed to postpone their quarterly estimated tax payments. Some may qualify for disaster relief by adjusting their 2023 returns or claiming it on their 2024 filings.
The IRS website provides more information on disaster relief for affected residents. ONLINE INCOME Another update impacts individuals who sold goods or services online, as this type of income is generally taxable. Many may receive a 1099-K form , typically sent to those paid directly via credit or bank cards.
Even for those who do not receive this form, business income must still be reported to the IRS. SECURITY CHANGES The IRS is now asking more Americans to protect their tax information with a Personal Identification Number (PIN) due to the growing number of people filing online. This added layer of security helps confirm your identity when submitting a return using your Social Security number.
Taxpayers are encouraged to activate it to better safeguard their IRS accounts. CREDIT FOR EV DRIVERS If you purchased an electric vehicle using the $7,500 tax credit at the dealership, you’ll need to report it on your tax return. This confirms your eligibility for the credit to the IRS.
If your income exceeds the threshold, you’ll forfeit the credit. TAX PENALTIES An increasing number of taxpayers are facing penalties for underpaying taxes on income that is not subject to withholding. Those who fail to make accurate estimated payments may be hit with a penalty of around 7%.
The IRS reported a 15% increase in the number of taxpayers penalized for not paying estimated taxes in the 2023 tax year, reaching 14 million. It's important to note that this penalty figure can change each quarter. FILE FOR FREE The IRS has expanded its Direct File program, a free online service for filing taxes.
Read More on The US Sun The service has been extended to 25 states, up from 12 the previous year. The IRS advises taxpayers who seek help with their returns to rely on trusted tax professionals to avoid scams and fraud..
