Americans Only Have a Few Days Left to File Income Taxes: Here’s What You Need to Know

The top of a form 1040 individual income tax return for 2005 is seen atop a stack on the same at the Des Plaines Public Library in Des Plaines, Ill., on March 23, 2006. Tim Boyle/Getty Images

The clock is ticking: there are about four days to go until tax day, which lies on Tuesday, April 18.

The IRS has said that if one’s tax returns contain no errors or potential red flags, a refund should be delivered within 21 days if the taxpayer files electronically and wants the money directly deposited in their bank account. For those using traditional mail, it could take months.

The IRS says that under federal law, it has to wait to issue refunds to those who claim the  Earned Income Tax Credit or Additional Child Tax Credit.

People who are having a difficult time finishing their return by the April 18 deadline are advised to file an extension. Otherwise, they'll be forced to pay a penalty.

Individual tax filers can use the IRS Free File website to electronically request an extension. They can also use part or all of their estimated income tax that is due and say the payment is for an extension.

Those who don’t file on time will have to pay 5 percent of the unpaid taxes for each month that a return is late, although it will not exceed 25 percent of the unpaid taxes. A minimum penalty will be implemented if the return is more than 60 days late, according to the IRS.

It also says that a separate failure to pay penalty is 0.5 percent “of the unpaid taxes for each month or part of a month the tax remains unpaid. The penalty won’t exceed 25 percent. of your unpaid taxes.” It adds: “If both a Failure to Pay and a Failure to File Penalty are applied in the same month, the Failure to File Penalty will be reduced by the amount of the Failure to Pay Penalty applied in that month. For example, instead of a 5 percent Failure to File Penalty for the month, we would apply a 4.5 percent Failure to File Penalty and a 0.5 percent Failure to Pay Penalty.”

“If you don’t pay your tax in 10 days after getting a notice from us with our intent to levy, the Failure to Pay Penalty is 1 percent per month or partial month,” the IRS also warns. “We apply full monthly charges, even if you pay your tax in full before the month ends.”

Some Americans who were impacted by recent natural disasters get extra time from the IRS. However, that may not apply to state taxes, although most states adhere to the federal government’s schedule.

Some New York residents impacted by the past winter storms and blizzards in December have until May 15, 2023, to file their returns. Mississippi taxpayers impacted by severe weather and tornadoes last month have until July 31, 2023. And those living in Alabama, California, and Georgia get a deadline of Oct. 16, 2023, to file federal returns, according to previous IRS notices.

Meanwhile, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don’t collect income taxes. Several states, including Iowa, Virginia, Delaware, and Louisiana have different deadlines. Iowa’s deadline is May 1, Delaware’s is May 2, Virginia’s is May 1, and Louisiana’s is May 15, while California extended the state tax deadline until May 18 due to the recent storms.

Taxpayers can check with their respective departments of revenue to see the most current information about their state taxes.

As of March 30, the IRS received 90 million returns out of an expected more than 168 million individual tax returns, according to a recent update. The average refund is about $2,910, down a few hundred dollars from last year, data shows.

Ted Rossman, an analyst with Bankrate.com, said those who receive refunds tend to use the money “very practically,” often to pay off debt and boost savings.

“What I do think is definitely significant is the fact that other costs have gone up,” Rossman said. “It’s bad enough that this is taking 10% off your tax refund, but on top of that, your groceries might be up, and rent, and gas prices. This is money that a lot of people really count on every year.”

“Even a difference of $300 on the tax refund, that does pale in comparison to the stimulus people received during the pandemic,” he said. “Psychologically, economically speaking, it probably feels like, ‘Just one more thing.’ So maybe it weighs on confidence more than actual spending.”

Taxes are due on April 18 because April 15 falls on a Saturday and Emancipation Day, a holiday observed in the District of Columbia, is on April 17, says the IRS.

The Associated Press contributed to this report.