Tax season 2024 is here, and the IRS is expecting more than 146 million individual tax returns this year. Yahoo Finance’s Seana Smith breaks down everything you need to know like when to file, how to file for an extension, and what happens if you miss the April 15th deadline. Segment is from February 2, 2024.

Video Transcript

SEANA SMITH: Tax season is upon us. The IRS is already accepting returns. And it's never a bad idea to file early. The earlier you do it, the earlier you might get your tax refund. So when should you file? Well, the deadline to file is Monday, April 15. And for most Americans, April 15 is also the absolute last day to request an extension.

Remember, an extension buys you additional time to file, but not more time to pay, but it could help you avoid a potentially hefty penalty. You can get an automatic extension if you are hit by a natural disaster, or a member of the military that qualifies, or if you worked or lived outside of the US on tax filing deadline.

So what happens if you just miss the tax deadline? Well, you will pay for it a couple of different ways. First, there's failure to file, if you don't file your tax returns by the due date. Then there's also failure to pay, and this applies when you don't pay the tax that you owe by that due date.