BALTIMORE — It’s Tax Day and millions of Americans are racing against the clock to file their 2023 income tax returns before the 11:59pm deadline.
Financial experts say don't panic but do something. If you owe and don't file today, you'll be faced with a 5% penalty for each month you're late.
You can put in for an extension which gives you until October 15th to file. However, requesting for an extension doesn't give you more time to pay. Taxpayers who owe, should pay the entire amount or as much as you can to avoid penalties and interest.
Before you reach for your wallet, experts say if possible, try to avoid using a credit card so you won't be hit with high interest rates. Instead, you can setup a payment plan with the IRS. Experts say the interest rates will be lower than the average interest rate on a credit card.
Explore all your options because there is a way to file your taxes for free.
"If you are like 70% of most Americans and make less than $79,000 a year, you qualify for free file. And free file is a partnership between the IRS and several different software tax software companies. They provide their software for free,” said Luis Garcia, a spokesperson with the IRS.
You can find those services on the IRS website.
If you're mailing your returns, the IRS will only accept it if its addressed correctly, has enough postage and is postmarked by the due date.
People that live in Maine or Massachusetts have some breathing room. They have until April 17th due to holidays there.