Tax Tips for Procrastinators

Are you sort of person who thinks planning is just something nerds do? Do you only consider buying gas after that little orange gas pump on your dashboard starts blinking? Do you wait to tackle that mountain of laundry until it’s a borderline health hazard?

Procrastination: We’ve all been there (and the struggle is real). If you usually wait until the very last minute to file your taxes, you’re not alone. In 2024, 18.7 million Americans waited until the last week before Tax Day to file their taxes (while over 100 million Americans beat them to the punch).^{1, 2}

It’s true that procrastinating with some things only leads to minor inconvenience (like heading to the store in your slippers at midnight for toilet paper). But procrastinating with your taxes? That’s like playing chicken with the IRS. Not a great idea.

Some, who learned a few lessons about tax procrastination the hard way, shared what they learned with us. To help you avoid those same mistakes—and to help make tax season less stressful—we’re sharing their stories, along with some helpful procrastination-fighting tips.

You’re going to ace tax season this year!

1. Filing Your Taxes Is Not Optional

Ignoring your tax obligation won’t make it go away. It’ll only make things worse.

Tax Day is usually April 15 (it can’t fall on a weekend or holiday). So you know it’s going to happen every year—ready or not.

If you’re panicking because you know you owe a lot this year but don’t know how you’re going to pay, it’s easy to justify kicking the tax can down the road. But that won’t fix it. The worst thing you can do is put off filing your return day after day, week after week.

Olga M. made that mistake. Twice. And she vows never to let it happen again: “For the past two years we have filed on October 15, late. Why? Because I’ve been unorganized and haven’t prioritized. The results? I’ve wasted $150–$200 in interest.”

If you think that’s unfortunate, it could have been a lot worse. If you don’t file by Tax Day, here’s what happens:

• If you’re getting a refund: It’s simple. You can’t get a refund unless you file your taxes. If the IRS owes you a refund, you won’t be penalized for failing to file—but Uncle Sam won’t give you back your money until you do. You have three years from the original deadline to file and still receive your refund. If you don’t file by then, you can kiss it goodbye.³
• If you owe taxes: You’ll be charged a failure-to-file penalty, which is 5% of the taxes you owe for every month your return is late (even if it’s just a partial month), up to a maximum of 25% of your total tax bill. You’ll also be charged at least 3% interest, and unlike most other debts, this interest compounds daily. You could file an extension (more on that later), but that only gives you more time to file, not to pay. If you don’t pay what you owe in full by Tax Day, the IRS will add penalties and interest to your tax bill.⁴

But what if you can’t pay your tax bill and didn’t file an extension? If that’s you, you’ll want to work with a tax pro to file your taxes as soon as possible. Bottom line: The sooner you file, the less you’ll have to pay.

2. Get Organized

Picture yourself digging through piles of clutter to find paperwork and trying to remember long-forgotten passwords to access online records . . . None of that sounds like fun. In fact, it’s the complete opposite of fun. We’re pretty sure you’d rather “relax” in a dentist’s chair or “enjoy” scrubbing the toilet.

Don’t settle for tax software with hidden fees or agendas. Use one that’s on your side—Ramsey SmartTax.

But organizing your tax documents is a necessary step in getting your taxes done—so why not go ahead and just get it out of the way? Like any other chore, filing your personal taxes probably won’t take as long (or be as bad) as you think. So do it. Gather everything you need, and know that you’ll feel better when it’s done.

Here’s a handy checklist of tax documents you may need to gather:

• W-2 forms
• 1099 forms
• Unemployment compensation statements
• Mortgage interest statements
• Receipts for tax credits or deductions (like charitable giving, childcare and education costs, and medical bills)
• Interest statements or Health Savings Account (HSA) statements
• Your PIN (if you e-filed last year)

While you’re at it, why not start a folder for next year’s taxes too? You could file documents as you receive them throughout the year and get a head start. This tip helped Rachel H. “We’ve procrastinated year after year,” she said. “The biggest lesson learned? I need to set up a filing system to keep the receipts I want to find for tax purposes.” Bingo!

This past year, Rachel finally did it. When she handed over all her tax documents to her CPA, it was months before the deadline.

Once you set up a system to keep all your paperwork and receipts in one place, it’s a lot easier to file your taxes early—plus, your stress could be much lower.

3. Give Yourself a Fake Deadline

Any time you’ve got a big, ugly task staring you in the face, it’s best to get it out of the way as soon as possible. Constantly dreading something is worse than actually planting your feet and getting it done.

Income taxes are no different. If it’s not optional, why not just get it over with?

Give yourself a fake deadline (well before Tax Day) and get your taxes done early. Once you file that return, you can give yourself a little in-budget reward for being so awesome. Catch a movie. Go out for steak and ice cream. Or why not try steak-flavored ice cream? Okay, scratch that. The best part of the fake deadline strategy is, you’re able to relax while everyone else is freaking out and stressing out about getting their taxes done on time.

Speaking of things responsible adults do and don’t do: If you’re expecting a refund, you know it’s a super bad idea to go on a shopping spree before you even get the money, right?

And don’t fall for one of those predatory refund advance loans some tax software companies are pushing. Those loans come with hidden fee land mines scattered all over their fine print. No, thanks!

4. Make Time to Itemize

There are two kinds of people: those who say they don’t have time, and those who make time. Guess which one is the procrastinator?

The clock is ticking. And one way you can save (or make) a lot of time is by using the standard deduction. The Tax Cuts and Jobs Act pretty much doubled the standard deduction starting in 2018. Since then, itemized deductions just don’t make sense for most taxpayers.

But if your deductible expenses add up to more than the standard deduction, itemizing is your best bet. Why? Because every deduction you claim reduces the amount of income you’re taxed on, lowering your tax bill. And get this: While it might not make sense to itemize for your federal taxes, itemizing for your state taxes could save you a decent chunk of change—so it helps to check.

Want help with it? Ask an experienced tax pro. But keep in mind that the longer you wait, the harder it may be to find someone to help. All the good ones are usually booked through the end of tax season. And that’s another reason procrastination is not your friend—especially when you need to get your taxes done.

5. Avoid Processing Delays

At the end of May 2024, the IRS still had 2.7 million unprocessed tax returns on its hands. That was about 400,000 more than the same period in 2023.⁴ Because so many taxpayers procrastinate, the same pileup happens like clockwork every tax season—which means it takes longer to get your return processed so you can be done with the IRS for another year.

Here’s the good news: The frustration is avoidable.

You could avoid the annual tax refund pileup if you file early, file electronically and choose to receive your refund via direct deposit.

The sooner you file, the more likely your return will be processed quickly, so don’t let your tax return get stuck in that bottleneck. Plus, if Uncle Sam owes you this year, filing early means you’ll receive your refund faster.

6. If You Can’t File Your Taxes, File an Extension

If you start early in the year, you should have plenty of time to file your taxes by Tax Day (or even earlier). But let’s say you’re missing documentation and have no choice but to file late. What you can do then is request a six-month extension: Simply fill out IRS Form 4868 and submit it to the IRS by Tax Day (usually April 15).⁵

But fair warning: An extension doesn’t buy you more time to pay your tax bill. It simply gives you more time to file. When you request an extension, you must estimate your tax liability (if any) and send payment with your request. If you don’t, you’ll be charged penalties and interest on whatever you still owe after Tax Day.

Can’t cover it all by the deadline? Pay as much as you can when you file your extension and try to knock out the balance before the IRS contacts you (it usually takes 30–60 days). If you can’t pay your taxes in full by then, you can apply for a payment plan. And good news—you can set up your plan on the IRS website without having to call and wait on hold for hours!⁶

File Your Taxes With Confidence

If you need budget-friendly tax software to file your taxes on your own, Ramsey SmartTax is a simple software with no hidden fees.

But if your taxes are a little more complicated and you feel like you need a tax expert, a RamseyTrusted^® tax pro can help you file with confidence. They know the tax code, so you don’t have to worry about knowing it yourself.