US Tax Deadline 2024

United States Department of the Treasury: Internal Revenue Service 2024-04 News Release

Start of the 2024 Tax Season Announced

The Internal Revenue Service (IRS) has officially set January 29, 2024, as the commencement of the 2024 tax season, marking the period when the IRS will begin accepting and processing individual tax returns for the year 2023. This announcement comes after the agency’s significant overhaul, aimed at enhancing its technological capabilities and customer service, with substantial funding from the Inflation Reduction Act.

IRS Expectations and Deadline for Tax Season

The IRS anticipates a robust tax season, with projections indicating the receipt of over 128.7 million individual tax returns by the April 15, 2024, deadline. This expectation is a testament to the agency’s ongoing efforts to streamline processes and provide better services to taxpayers following the improvements seen in the previous year.

Electronic Direct File Pilot Program

A notable development for the 2024 tax season is the introduction of a new electronic direct file pilot program. This initiative will allow eligible taxpayers to file their 2023 tax returns directly with the IRS online, with the service expected to be widely available by mid-March. This move is part of the IRS’s digital transformation and aims to provide a more efficient filing experience.

Taxpayer Services and Deadlines

The IRS has also announced that most refunds are expected to be processed within 21 days, and taxpayers will continue to see improvements in services following the successful transformation efforts of the previous year. The deadline for most taxpayers to file their personal federal tax returns and pay any owed taxes is April 15, 2024, with certain states and individuals having specific deadlines due to local observances.

Income Tax Collections

Income tax collections have shown a mixed picture, with individual income tax collections exceeding expectations in January, but corporate income tax collections falling short. These figures reflect the broader economic landscape and the varying challenges faced by individuals and corporations.

Federal Income Tax Brackets and Standard Deductions

The IRS has also updated the federal income tax brackets and standard deductions for 2024, with the top tax rate applying to individuals with taxable income above $609,350 and married couples filing jointly earning $731,200. These changes are part of the agency’s efforts to keep the tax system fair and progressive.

IRS Free File Program

The IRS Free File program will be available from January 12, 2024, with participating software companies accepting completed tax returns to be filed electronically with the IRS. This initiative provides a free filing option for taxpayers with an adjusted gross income of $79,000 or less in 2023, and also offers free fillable forms for all income levels.

Value-Added Tax Gap Estimate in the UK

In international tax news, the U.K.’s HM Revenue & Customs has estimated that the gap between expected VAT collections and actual collections for the 2022-23 tax year was £8.6 billion. This figure underscores the challenges in collecting value-added taxes and the importance of robust tax administration systems.

State Tax Changes

Thirty-four states will see notable tax changes in 2024, with 17 of these states reducing individual or corporate income taxes. These changes reflect the complex and varied tax landscapes across the United States, where state-level tax policies can have significant impacts on taxpayers.

Deadlines and Extensions

For those requiring additional time, the deadline to file personal federal tax returns and pay any taxes owed is April 15, 2024. However, certain taxpayers in states like Maine and Massachusetts, and in Washington, D.C., may have until April 17 due to local holidays. These extensions are designed to accommodate taxpayers and ensure compliance with local observances. – USNEWSNBUZZ

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US Tax deadline 2024 – USNEWSNBUZZ