There are plenty of understandable reasons why you might not have filed your income tax return in 2024. Perhaps you’re new to the job market, and the requirement to file just slipped under your radar. Maybe life got overwhelming, and taxes took a backseat. Whatever your reason—whether you’ve missed just one year or several—there comes a point when either you remember on your own, or you receive a little nudge in the form of a request for a copy.
So, what now? How much trouble are you really in?
✅ The Good News
First, if you realized you haven’t filed before receiving a notice from the IRS or your state tax authority, you’re likely not in too much hot water. Even if you’ve received a notice, there’s a clear legal process that the IRS follows when a taxpayer hasn’t filed a return. It’s a manageable procedure—nothing to lose sleep over. Nobody’s breaking down your door. Filing taxes is about paperwork and payments. If you’ve fallen behind, it’s just a matter of amending the situation, paying any penalties, and possibly some interest.
💡A Matter of Fact…
You might not have needed to file a return at all.
Certain taxpayers aren’t required to file a tax return. When that’s the case, your state often follows the IRS’ lead, which can be a good thing because state penalties for failing to file can sometimes be higher than federal penalties.
To find out if you needed to file, visit the IRS website and use their “DO I NEED TO FILE A TAX RETURN?” tool. Plug in details about the tax year in question, your income, household composition, and filing status, and you’ll get a quick answer.
Tax Filing Categories
You might be pleasantly surprised unless you fall into one (or more) of the following categories:
- 📌 You earned at least $400 in profit from self-employment, including freelance work or gig jobs like driving for Lyft or Uber.
- 📌 You sold your home, even if it was a break-even or a loss, and had no other income that year.
- 📌 You received unemployment benefits.
- 📌 You’re a tipped worker who didn’t report all tips to your employer, or your employer didn’t submit payroll taxes for those tips.
In any of these cases, you are required to file a tax return, regardless of how much you earned or whether you paid taxes on those earnings.
Fortunately, filing a tax return is always an option, even if you’re late. On the bright side, you might be due a refund.
❓ Did the Government Do It for You?
The IRS doesn’t always catch it when someone fails to file a tax return. But when they do, they’ll send you a notice. If your Social Security Number was linked to any document they received—whether it’s a W-2, 1099, or another form—they might have filed a substitute tax return for you. These substitute returns are bare-bones, using only the standard deduction and personal exemption, and they don’t account for any information you could provide to reduce your tax liability. They also use this data to calculate any penalties, interest, or fines owed.
One of the best reasons to file your own tax return instead of relying on the government’s substitute is that if you need a previous year’s return for something like a loan application, the substitute likely won’t cut it.
Better Late Than Never, But It Has to Be Right
When filing a past-due tax return, precision is key. This is not the time for mistakes or omissions. Even if your return is typically straightforward, it’s wise to work with an experienced tax professional. They can ensure that your paperwork is filed correctly, help you avoid potential pitfalls, and act on your behalf if any complex questions arise. In some cases, they may even be able to reduce or eliminate your penalties.
If you’ve missed a tax filing deadline, don’t wait for things to snowball. Contact us today to help you navigate the process and potentially save you from unnecessary penalties. Filing late doesn’t have to be a stressful experience—we’re here to make it as smooth as possible, with a side of wit and wisdom. Let’s get your 2024 tax return filed the right way!