By Cris Alarcon, InEDC Writer. (April 12, 2025) — With the April 15 tax filing deadline imminent, Californians are urged to take immediate steps to ensure compliance and potentially optimize their tax outcomes. Here are essential considerations for last-minute filers:
1. File Electronically and Opt for Direct Deposit
E-filing combined with direct deposit is the fastest and most secure method to submit your tax return and receive any refunds. The IRS reports that most refunds are issued within 21 days when using this method.
2. Contribute to an IRA by April 15
Contributions to a traditional Individual Retirement Account (IRA) made by April 15 can be applied to the 2024 tax year, potentially lowering your taxable income. For instance, a $7,000 contribution could reduce your tax bill by approximately $1,540 if you’re in the 22% tax bracket.
3. Claim the Earned Income Tax Credit (EITC)
Eligible taxpayers have until April 15 to claim the EITC for the 2021 tax year, which could provide up to $7,830 for qualifying individuals and families. Even if you aren’t required to file a return, submitting one to claim the EITC could result in a significant refund.
4. Understand Penalties for Late Filing and Payment
Failing to file by April 15 can result in a failure-to-file penalty of 5% of unpaid taxes per month, up to 25%. Late payments incur a 0.5% monthly fee, with interest accruing on unpaid amounts. If unable to pay in full, it’s advisable to file on time and arrange a payment plan with the IRS to minimize penalties.
5. Utilize IRS Free File and Direct File Services
The IRS offers Free File for taxpayers with an adjusted gross income of $73,000 or less, providing free tax preparation software. Additionally, the Direct File system allows eligible taxpayers to file directly with the IRS through October 15, 2025.
6. Consider Filing for an Extension if Necessary
If more time is needed to prepare your return, file Form 4868 by April 15 to request an extension until October 15. However, any taxes owed are still due by April 15 to avoid penalties and interest.
7. Be Aware of California-Specific Deadlines and Relief
While the federal deadline is April 15, California taxpayers affected by recent wildfires may have extended deadlines. It’s essential to verify if you qualify for state-specific extensions or relief.
As the deadline nears, taking these steps can help ensure compliance and potentially enhance your financial position. For personalized advice, consider consulting a tax professional.
