The Internal Revenue Service encourages taxpayers who requested an extension to file their returns now rather than wait until the October 15 tax extension deadline. With less than three months remaining until the extension deadline, it's time to start preparing your 2024 tax return.
Why File Early Rather Than Wait for the October 15 Tax Extension Deadline
Many taxpayers who filed extensions assume they should wait until closer to the October 15 tax extension deadline, but there are compelling reasons to file sooner:
Avoid the October rush: Tax professionals typically see a surge in activity as the October 15 tax extension deadline approaches, which can mean longer wait times and higher stress levels.
Catch errors early: Filing earlier gives you more time to address any issues or additional documentation requests that might arise.
Peace of mind: Getting your return filed removes the deadline pressure and lets you focus on other priorities.
Key Documentation to Gather Now
If you haven't started organizing your 2024 tax documents, here's what you should focus on first:
Income documents:
- All W-2s from employers
- 1099 forms for contract work, investments, and other income
- Business income records if you're self-employed
- Unemployment compensation statements
- Social Security benefit statements
Deduction records:
- Charitable contribution receipts
- Medical expense documentation
- Business expense receipts and mileage logs
- Home office expenses if applicable
- State and local tax payment records
Special Considerations for 2024 Returns
Several items require particular attention for 2024 returns:
Form 1099-K changes: Taxpayers who received more than $5,000 in payments for goods and services through an online marketplace or payment app in 2024 should expect to receive a Form 1099-K PDF in January 2025. Even if you received this form, remember that all income, including proceeds from part-time work, side jobs, or the sale of goods and services, is taxable regardless of whether you received a 1099-K.
Digital assets: Taxpayers must report all digital asset-related income when they file their 2024 federal income tax return. A digital asset is property that is stored electronically and can be bought, sold, owned, transferred, or traded. Examples include convertible virtual currencies and cryptocurrencies, stablecoins, and non-fungible tokens (NFTs).
Employee Retention Credit: Generally, businesses can't claim the Employee Retention Credit after April 15, 2025. However, the IRS continues to urge employers to review their ERC claims. If you have concerns about the validity of an ERC claim, there's still time to address it.
State Return Considerations for October 15 Tax Extension Deadline
Don't forget about state tax returns. While many states follow the federal October 15 tax extension deadline, some have different dates. A few key state deadlines to note:
- Delaware: May 1st (if you haven't filed yet, this deadline has passed)
- Iowa: April 30th (deadline has passed)
- Louisiana: May 15th (deadline has passed)
- Virginia: May 1st (deadline has passed)
If you're in one of these states and missed the deadline, contact the state tax agency immediately to understand your options and any penalties that may apply.
Disaster Relief Extensions
Some taxpayers have even longer extensions due to natural disasters. For taxpayers in Los Angeles County in California, the deadline has been extended to Oct. 15, 2025, due to the wildfires in January, while other areas affected by various disasters may have different extension dates.
Payment Requirements Beyond the October 15 Tax Extension Deadline
Remember that the extension is only for filing your return. There are 3 ways to get until the October 15 tax extension deadline to file your tax return, but any taxes owed were still due by the original April 15th deadline. If you haven't made estimated payments and expect to owe taxes, you may face interest and penalties on the unpaid balance.
Professional Help Available
The Internal Revenue Service reminds taxpayers who missed the April deadline that help is still available. Whether you're dealing with complex tax situations, multiple income sources, or simply want to ensure everything is filed correctly, professional assistance can be invaluable.
Don't let the October 15 tax extension deadline create unnecessary stress - start the process now, and you'll have plenty of time to address any complications that arise.
Next Steps
- Gather all tax documents - Don't wait for missing forms
- Schedule your appointment - Tax professionals' calendars fill up as October approaches
- Review potential deductions - Including any new deductions you might qualify for under recent legislation
- Consider estimated payments - If you expect to owe taxes for 2025
Filing your extension return early isn't just about meeting the October 15 tax extension deadline - it's about ensuring accuracy, maximizing deductions, and reducing stress during what should be an enjoyable fall season.
If you find yourself with tax problems of any kind, don't hesitate to contact us for help and guidance. That's what my team and I are here for.
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