Can I File My Taxes Today? Steps to Get Started

Filing taxes is a responsibility for individuals and businesses, ensuring compliance with government regulations while potentially securing refunds or minimizing liabilities. The process can feel overwhelming, but understanding the steps simplifies it significantly.

Determining Filing Period

Understanding the filing period is crucial for timely tax preparation. For most individual taxpayers, the filing period for the 2024 tax year begins on January 22, 2025, and ends on April 15, 2025. If April 15 falls on a weekend or holiday, the deadline shifts to the next business day. Taxpayers can request an extension to file until October 15, 2025, but this does not extend the deadline to pay any taxes owed. Taxes must be estimated and paid by the original April deadline to avoid interest and penalties.

Business entities have different deadlines. C corporations generally file by April 15, while S corporations and partnerships must file by March 15. Knowing these dates is essential for compliance and avoiding late penalties.

Required Documents

Gathering the necessary documents is a vital step in tax filing, ensuring accuracy and supporting any claims for deductions or credits. Proper documentation simplifies the process and minimizes errors.

Income Records

Income records provide the foundation for calculating taxable income. For individuals, this typically includes W-2 forms from employers. Independent contractors and freelancers should collect 1099 forms, such as the 1099-NEC for non-employee compensation. Additional income sources, like interest and dividends, are reported on forms like the 1099-INT and 1099-DIV. Rental income requires records of rent received and related expenses. Underreporting income can result in penalties, including a 20% fine for negligence under the Internal Revenue Code Section 6662.

Deductions

Deductions reduce taxable income, and proper documentation substantiates these claims. Common deductions include mortgage interest, reported on Form 1098, and charitable contributions, which require receipts or acknowledgment letters. Medical expenses exceeding 7.5% of adjusted gross income, as outlined in Internal Revenue Code Section 213, may also be deductible. For business expenses, detailed records of travel, meals, and office supplies are necessary. Taxpayers should determine whether itemizing deductions or taking the standard deduction is more advantageous, especially with changes introduced by the Tax Cuts and Jobs Act of 2017.

Identification

Providing accurate identification ensures the tax return is properly attributed to the taxpayer. This includes a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Dependents’ SSNs or ITINs are also required for claiming exemptions or credits, such as the Child Tax Credit, which can provide up to $2,000 per qualifying child under Internal Revenue Code Section 24. A copy of the previous year’s tax return is helpful for reference, and electronic submissions often require a Personal Identification Number (PIN) or last year’s Adjusted Gross Income (AGI) for identity verification.

Approaches for Electronic Submission

Electronic submission offers convenience, efficiency, and faster processing. The IRS’s e-file system allows individuals and businesses to submit returns securely, with built-in checks to minimize errors. E-filing supports forms like the 1040 series for individuals and the 1120 series for corporations. Taxpayers who e-file often receive refunds within three weeks and can opt for direct deposit to expedite the process and reduce the risk of lost checks.

Tax software and authorized e-file providers further streamline the process with user-friendly interfaces and integration with accounting platforms like QuickBooks or Xero. Selecting a provider that complies with IRS security standards, as detailed in Publication 4557, ensures the confidentiality of tax information.

Guidelines for Paper Returns

Filing a paper tax return remains an option for those who prefer it or lack access to electronic filing resources. Accuracy is critical, as paper submissions are more prone to errors, which can delay processing or prompt IRS inquiries.

When completing a paper return, use black ink and ensure handwriting is legible, or print forms for clarity. Double-check calculations and verify that figures align with supporting documents such as W-2s or 1099s. Attach all required documentation, including statements or explanations, to avoid follow-up requests from the IRS. Remember to sign and date the return, as unsigned submissions are invalid and will be returned.

Missed Deadline Implications

Failing to file a tax return by the deadline can result in financial penalties. The IRS typically imposes a 5% penalty of unpaid taxes for each month or part of a month the return is late, up to a maximum of 25%. If the return is over 60 days late, the minimum penalty is either $435 or 100% of the unpaid tax, whichever is less, as stated in Internal Revenue Code Section 6651(a)(1).

Late payment penalties accrue at 0.5% of unpaid taxes per month, also capped at 25%. Interest on unpaid taxes compounds daily, based on the federal short-term rate plus 3%, as outlined in Internal Revenue Code Section 6621. These penalties and interest can significantly increase tax liability. For example, a taxpayer owing $10,000 who delays filing for six months could face penalties exceeding $1,500, excluding interest. Filing as soon as possible, even if unable to pay in full, can mitigate these costs. The IRS often offers payment plans under Internal Revenue Code Section 6159.

Beyond financial consequences, missing the filing deadline has broader implications. Taxpayers owed a refund may forfeit their claim if they fail to file within three years of the original deadline, under Internal Revenue Code Section 6511. Noncompliance may trigger audits or enforcement actions, such as tax liens or levies. Late filings for self-employed individuals can also affect Social Security and Medicare credit calculations, potentially impacting future benefits. To avoid these outcomes, taxpayers should communicate with the IRS proactively, explore penalty abatement options if eligible, and prioritize timely compliance in subsequent years.