Here's What Happens if You File Your Tax Return One Week Late

Because tax returns are typically due on April 15, it shouldn't really come as a surprise that this year, the same holds true. But what if you're up against the filing deadline and you just need a bit more time?

You might think it's no big deal to file your tax return a week late. But depending on your situation, that's a move you might sorely regret.

You could end up with a sizable penalty

The consequences you face for being late with a tax return depend on whether you owe the IRS money or are owed a refund. If you're eligible for a refund, being a week late means your return and refund will be processed one week late. So if you're not bothered by the idea of seeing that money hit your bank account seven days later, then you can make your peace with the situation.

On the other hand, if you owe the IRS money from 2023 and are a week late filing your tax return, you'll be hit with a failure-to-file penalty. And that penalty is pretty harsh. It equals 5% of your unpaid tax bill per month or partial month your return is late, up to 25%. Filing a week late therefore subjects you to a 5% hit.

Now if you only owe the IRS $500, filing your taxes a week late will mean losing $25. That's not a fun thing, since it's money that might pay for a streaming service for a month or a nice takeout meal. But it's not an enormous amount of money, either, so you may not exactly be in tears over losing it.

However, if you owe the IRS $5,000 and file your tax return a week late, you're looking at a penalty of $250. That's a much bigger deal.

Also keep in mind that if you don't pay your tax bill on time, you're penalized separately for being late. There, the penalty is 0.5% per month or partial month your bill is late, up to 25%.

So let's say you're a week late filing a tax return where you owe the IRS $2,000, and you're also a week late paying. The first offense will cost you $100. The second will only cost you $10.

Ask for an extension if you need more time

If you don't think you'll get your taxes done by April 15 this year, request an extension by that deadline. In the above example of being a week late and owing $2,000, with an extension, you'll get out of the $100 penalty and will only be looking at the $10 penalty.

Now you should know that a tax extension will give you six extra months to file your return. But it's best to file it as soon as possible after April 15, because you may not know how much tax you owe until you run those numbers through tax software. And the longer you wait to pay the IRS when you owe money, the higher the late payment penalty you might incur.