Article | 2:18 min read

Tax Season 2024 Q&A

Budget and Save

Tax season is a time of year that many people dread. With the right knowledge, it doesn’t have to be a stressful experience.

Question and answer icons

As tax season approaches, many individuals and businesses have questions about their tax situation. While every tax situation is different, there are some common questions that arise year after year. Here are answers to some of the most frequently asked tax questions.

What is the deadline to file my income tax return?

  • Filing deadline: Monday, April 15, 2024
  • 6-month extension: October 15, 2024

Filing your tax return and paying the balance due on time is very important to avoid late filing and late payment penalties (and a pile of tax notices). If you cannot file on time, you may request a 6-month extension of time to file, which extends the filing due date for Form 1040 until October 15, 2024.

It is also very important to pay the balance due on time. If you are requesting an extension for your tax return, please note that an extension of time to file is not an extension of time to pay. Make your best estimate of the tax due and remit payment with your extension request.

When will I receive my tax forms?

Tax forms are documents used by individuals and businesses to report income, calculate taxes owed, and provide other information related to their tax situation. It’s important to note that if you have a Central Trust Company account that is custodied on the Fidelity platform, you will most likely receive documents from Fidelity under the name “National Financial Services”.

  • Form 1099-R is required to be issued by January 31st, 2024 to report distributions from IRA and retirement accounts.
  • Form 1099, which provides the details for interest, dividends, and capital gains, is required to be issued by the extended deadline of March 15, 2024.

When must I begin taking Required Minimum Distributions?

You cannot keep your retirement funds in your account forever. Required Minimum Distributions (RMDs) refer to the minimum amount that must be withdrawn annually from certain types of retirement accounts by individuals who have reached a certain age.
The beginning age for taking required minimum distributions (RMDs) has been changed several times over the past few years. Upon reaching the required beginning age, owners of IRA accounts and retirement plans are generally required to take a required minimum distribution each year, as calculated using an IRS-prescribed method and life expectancy tables based on your age.

  • SECURE Act passed in late 2019: the required beginning age changed from age 70½ to age 72, for those who had not reached the required beginning age before January 1, 2020.
  • SECURE 2.0: the beginning age has again changed to age 73, for anyone who reaches age 73 on or after January 1, 2023.
  • Eventually, in 2033, the beginning age changes to age 75.

Be sure to consult your tax advisor for information about your specific situation.

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its subsidiaries and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.