PHOENIX – As Tax Day looms closer, IRS officials offer crucial advice for Americans rushing to file their taxes before the April 15 deadline.

Filing Extensions and Special Cases

Americans Living Abroad

U.S. citizens and resident aliens abroad, including military personnel, have extensions to file until June 15.

Disaster Areas and Combat Zones

IRS extends deadlines for taxpayers affected by disasters or serving in combat zones.

Filing for Extensions

Taxpayers not covered under special extensions can file for an extension using IRS Free File.

Ways to File Taxes

IRS Direct File

Residents in 12 states can file for free using IRS Direct File, meeting specified criteria.

IRS Free File

Taxpayers with varying Adjusted Gross Incomes (AGIs) can use free tax preparation software, with AGI limits up to $79,000.

Tax Assistance Programs

Programs like Volunteer Income Tax Assistance (VITA) offer free basic tax return preparation for eligible individuals.

E-Filing Dominance

90% of taxpayers choose e-filing due to its speed and security measures against identity theft and refund fraud.

Audit Precautions

IRS conducts audits primarily through mail notifications, not telephone calls. Common triggers for audits include incorrect income reporting, substantial donations with low income, and improper deductions.

Audit Rates

Audit rates vary by income, with higher rates for Earned Income Tax Credit (EITC) claimants and discrepancies in reported income.

Retirement Contributions Limits

401(k) Contributions

The 2024 limit for 401(k) contributions is $23,000.

IRA and Roth IRA Contributions

For IRAs, the limit is $7,000 (under 50) and $8,000 (50 and over), while Roth IRA contributions have income-based eligibility criteria.

Understanding Retirement Contributions

As Tax Day approaches, understanding tax implications and contribution limits is vital. Consult financial professionals for personalized advice.

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