April 2024 Individual Due Dates
April 10 - Deadline for Reporting Tips to Employers
Employees earning more than $20 in tips during March must report this income to their employers using IRS Form 4070 by April 10. Employers are then responsible for deducting FICA taxes and income tax withholdings from the employee's regular wages. Should the regular wages be insufficient for the FICA and tax withholdings, employers will note the uncollected amount in box 8 of the employee's W-2 form for the year. The employee must then settle any uncollected withholdings when filing their yearly tax return.
April 15 - Reporting Requirement for Foreign Financial Interests
U.S. citizens, residents, or those conducting business within the U.S., who have financial interests in, or signature authority over, any foreign financial accounts must file Form FinCEN 114 if the total value of these accounts exceeded $10,000 at any point in 2023. This form, which must be filed electronically with the Treasury Department (not the IRS), is due by April 15, 2024, for the 2023 fiscal year. An automatic extension of up to six months is available for this filing. For help or more information on filing this form, please contact our office.
***April 15 - Deadline for Individual Tax Returns***
Individuals must file their 2023 tax return (Form 1040 or 1040-SR) and pay any taxes due by this date. If you require an automatic six-month extension to file your return, please reach out to our office. Note that if you reside in Maine or Massachusetts, the filing deadline is extended to April 17.
Please be aware that although the extension postpones the filing deadline until October 15, 2024, it does not exempt you from late payment penalties. Thus, if taxes are owed, it's crucial to file as soon as possible to minimize penalties and interest, which accrue from the original due date until payment. There are no penalties for refunds; however, delaying filing gives the government an interest-free loan. If you cannot file by April 15, contact our office to discuss your specific situation.
April 15 - Household Employer Filing Obligation
Household employers who paid a household employee $2,600 or more in cash wages in 2023 are required to file Schedule H with their federal income tax return (Form 1040 or 1040-SR) to report household employment taxes. This includes federal unemployment (FUTA) tax for total cash wages of $1,000 or more paid in any quarter of 2022 or 2023 to household employees, as well as any income tax withheld for these employees. For further details, please reach out to our office.
April 15 - Due Date for First Quarter Estimated Tax Payment
This date marks the deadline for the first quarter estimated tax payment for the 2023 tax year. Our tax system operates on a "pay-as-you-earn" basis, supported by:
• Payroll withholding for employed individuals;
• Pension withholding for retirees;
• Estimated tax payments for self-employed individuals and those with income not subject to withholding.
Failure to prepay a minimum "safe harbor" amount may result in an underpayment penalty, calculated as the federal short-term rate plus 3 percentage points, assessed quarterly.
To avoid the underpayment penalty, taxpayers must either owe less than $1,000 after subtracting their withholdings and credits, or they must meet one of the two "safe harbor" prepayment amounts:
Paying at least 90% of the tax owed for the current year;
Paying 100% (or 110% for higher income individuals) of the tax shown on the previous year's tax return.
For instance, if your tax for the year is $10,000 and you've prepaid $5,600, you'd owe an additional $4,400. If your payments fall short of 90% of the current year's tax, you'd not meet the first safe harbor. However, if the previous year's tax was $5,000 and you've prepaid $5,600, exceeding 110% of the previous year's tax, you'd meet the second safe harbor and avoid the penalty.
It's crucial to ensure adequate prepayments, especially with significant income increases. Remember, each estimated tax installment must be paid timely to qualify for safe harbor exemptions. If you have questions about your estimated tax payments, please contact our office promptly.
Note: State-specific rules for de minimis amounts, safe harbor estimates, and payment deadlines may vary from federal guidelines. Contact our office for state-specific safe harbor rules.
April 15 - Final Day for Contributions
This is the last day to contribute to Traditional and Roth IRAs for the 2023 tax year.