RALEIGH, N.C. (WNCN) — It is now less than 24 hours until tax day. The deadline is usually April 15 but since it fell on a weekend, taxpayers this year got three more days to file.
The Internal Revenue Service says it has already processed over 100 million individual returns and issued $229 billion in tax refunds, but the agency says nearly 40 million people have yet to file.
Every year, about a quarter of Americans wait until the very end to do their taxes. If you’re getting a late start then you might want to clear your schedule. The IRS estimates that it takes 16 hours to complete your taxes.
Taxpayers who make $64,000 or less can use the IRS free file software to prepare and file their federal taxes.
Families who are paying for their child’s college education may be able to take advantage of the American Opportunity tax credit. It provides $2,500 per student for people who earn $80,000 or less.
During tax season, there is a lot of talk about deductions, but tax credits are where the big savings occur. Credits provide a dollar-for-dollar reduction of your income tax bill.
One of the most popular is the Earned Income tax credit, which is available for married couples with earned income under $54,000 and $48,000 for those who are single.
If you don’t have the money on hand to pay the taxes you owe, you can apply for a free 120-day extension to pay the bill. Taxpayers can either use an IRS installment plan or use a credit card. Credit cards can be an expensive alternative because you will have to pay fees.