Nearly 40 million people have yet to file taxes this year

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.

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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.

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