Collect Those Coins! Everything You Need To Know About Tax Refunds In 2024
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It’s THAT time of year again! Folks all over the United States are preparing to file income tax returns as W-2 forms land in their inboxes and mailboxes. Not sure where to start with tax refunds this season? Let The Shade Room do all the work for you for the freeski!
From the schedule to what the child tax credit is hitting for, keep scrolling to get all your refund questions answered and explained.
When Will The IRS Start Accepting Income Tax Returns?
The simple answer? They’ve already started. According to the Internal Revenue Service’s (IRS) website, the agency began accepting and processing 2023 tax refunds on Jan. 29.
However, for future context, the IRS says you don’t need to wait until the opening date to begin working with your tax professional or relevant software companies. Additionally, for folks who do their own taxes, the IRS Free File became available at IRS.gov on Jan. 12. It’s a program that allows taxpayers with an Adjusted Gross Income of $79,000 or less to prepare and e-file their federal tax refund for free.
Remember, most of the money you make is taxable. That includes, but isn’t limited to, unemployment income, interest received, and payments from gigs and digital assets.
According to Nerd Wallet, parents or caretakers with kids under 17 might be eligible for the child tax credit of up to $2,000, of which $1,600 is potentially refundable. However, to be eligible the adjusted gross income for 2023 must be $400,000 or below for married folks filing jointly or $200,000 and under for all other filers.
The House of Representatives approved a bill to potentially increase the child tax credit on Jan. 31. Now, the Tax Relief for American Families and Workers Act of 2024 is under consideration by the Senate, per Forbes.
What Documents Are Needed To File For Tax Refund?
The IRS suggests taxpayers wait to file until they can access the relevant documents below. Changed your address last year? Notify the agency. Changed your legal name? Notify the Social Security Administration.
- Forms W-2 from your employer(s)
- Forms 1099 from banks, issuing agencies, and other payers including unemployment compensation, dividends, pension, annuity, or retirement plan distributions
- Form 1099-K, 1099-MISC, W-2, or other income statement if you worked in the gig economy
- Form 1099-INT if you were paid interest
- Other income documents and records of digital asset transactions
- Form 1095-A, Health Insurance Marketplace Statement, to reconcile advance payments or claims Premium Tax Credits for 2022 Marketplace coverage
- IRS or other agency letters
- CP01A Notice with your new Identity Protection PIN
What’s The Time Period To File Taxes And What Happens If I Miss It?
As mentioned, the acceptance period opened on Jan. 29. Meanwhile, Apr. 15, also known as Tax Day, marks the last day to file on time, request an extension, and make 401k contributions.
Taxpayers who might miss the deadline can request that extension with a Form 4868, found here. The extension will end on Oct. 15, 2024. However, this date may vary from state to state. The good news is you don’t need a reason or excuse to be granted an extension, as it’s an automatic acceptance process.
However, even if taxpayers request an extension, they’ll still have to pay any owed taxes by the Apr. 15 deadline.
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