Possible Refund Delays Because Of New Laws
One primary reason for the expected refund delays is a new law that forces the IRS to withhold refunds when the EITC, Earned Income Tax Credit, and ACTC, Additional Child Tax Credit, have been claimed on a persons taxes.
The 2015 act was passed to allow the IRS to combat fraud and issue correct refunds. Once your refund has been approved and cleared for payment, the funds will be processed.
Avoid The Rush And Protect Your Identity
Even though many taxpayers file their tax returns on or about April 15 each year, there is no need to put it off until the last minute. Filing an early tax return can make sense for various reasons, such as getting your refund sooner or minimizing the risk of identity theft.
Even if you don’t file early, there are good reasons to begin your tax preparation as soon as you can. For starters, it gives you the time you need to collect the documents and information required to claim all of your deductionsso you can avoid the headache of last-minute stress over receipts.
What’s more, if you use a paid preparer, your accountant will have more flexibility and may be able to start working on your accounts sooner. In addition, tax prepares may assess cheaper fees or a lower hourly rate if your tax return is prepared during non-peak periods.
Although the official tax filing deadline for most taxpayers for their 2022 returns is April 18, 2023, the IRS often kicks off the tax season by accepting tax returns as early as mid-January.
Do My Stimulus Checks Count As Taxable Income
The government sent out checks of $1,200 and $600 to millions of Americans in 2020 as the pandemic shut down most of the country. The good news is those IRS payments do not count as taxable income. The bad news? They are being treated like a refundable tax credit, so theyre similar to an advance on money you would have received as part of your refund.
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More Tax Planning Tips
Filing and refund dates aren’t the only deadlines that taxpayers have to concern themselves with. Certain payments and reporting requirements are sprinkled over the calendar year, and missing any of them could cause a headache. Here are a few other deadlines you may want to keep in mind:
- Sole proprietors and independent contractors who aren’t subject to tax withholding by an employer should make quarterly estimated payments on January 15, April 15, June 15, and Sept. 15 of each year. The date in January 2022 is actually Jan. 18, and its payment is especially important because it’s the last payment for the 2021 tax year.
- Employees who earn more than $20 in tips in the month of December 2021 should report them to their employers on Form 4070 by Jan. 10, 2022, and every month going forward.
- You can make 2021 IRA contributions until April 18, 2022.
Other Options To Pay Your Taxes Over Time
The IRS charges set-up fees for those who need to pay their taxes over time. But there might be more affordable options, such as using a 0% APR credit card to pay your tax bill or even taking out a personal loan.
When comparing costs, calculate how much the interest and fees will cost you over time. But if your is good enough to qualify you for either a 0% interest credit card or personal loan, you should do the math to find out which payment option is cheaper. Then choose the one that costs the least over time and has a monthly payment you can afford.
If a 0% interest credit card is a viable option for you, and once youre approved for the card, the next step is to visit this IRS webpage and pick a payment servicer. Pay1040 charges a fee of 1.87% to use a credit card to pay taxes, and the rewards from some credit cards can even negate this fee.
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Collect Your Income Documents
Your employer has until Jan. 31, 2022, to send you your W-2 form reporting your 2021 earnings. Most 1099 forms must be sent to independent contractors by this date as well.
Reach out to your employer and request a copy or a duplicate copy if you havent received your W-2 form. Your W-2 may also have been posted online, if you and your employer agreed to that method. As a last resort, you can call the IRS for assistance at 800-829-1040.
You can file IRS Form 4852, a W-2 substitute, if the tax-filing deadline is looming and you still dont have your W-2, but this can be a bit of a headache. Youll have to accurately calculate your earnings and withholding amount based on your final pay stub for the year, so you might want to reach out to a tax professional if you find yourself in this situation.
Collection And Enforcement Actions
The return we prepare for you will lead to a tax bill, which, if unpaid, will trigger the collection process. This can include such actions as a levy on your wages or bank account or the filing of a notice of federal tax lien.
If you repeatedly do not file, you could be subject to additional enforcement measures, such as additional penalties and/or criminal prosecution.
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The Irs Recommends Filing Your Taxes Early
According to the IRS, you should file your taxes early so you can avoid delays when waiting for your tax refund. This means youll get your tax refund the fastest way possible!
With an estimated 153 million tax returns expected to be filed, 80% of which will be submitted through online tax software, its always better to start as soon as possible and avoid any system downtime or painful delays.
Turbotax Has You Covered
Dont worry if you missed the deadline, you can still file with TurboTax. TurboTax has you covered and will ask you simple questions about you and give you the deductions and credits youre eligible for based on your answers. You can also fully hand your taxes over to a TurboTax Live tax expert, available year round, in English and Spanish who can prepare your taxes from start to finish.
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Can You File 2021 If You Didnt File 2020
Asked by: Boris Hickle IV
Some had wondered early on if they should wait to file 2021 federal income tax return until the 2020 moved through the IRS pipeline. No, the IRS said, you do not have to wait to have your 2020 return processed before you file the 2021 return. But you must take some extra steps if you want to file electronically.
Check Out More Child Tax Credit Resources
- Free Tax Filing: This webpage lists free in-person and virtual tax filing resources you can use to get half or all of your CTC. These resources include help from IRS-certified volunteers to file your taxes.
- Child Tax Credit Update Portal Guide: Use this guide for step-by-step instructions on how to sign-up for and use CTC UP to make changes to your CTC information or opt-out of CTC advance payments.
- ChildTaxCredit.com: This website features FAQs and a CTC eligibility calculator that can help you understand how much you can get from the credit.
- LetsGetSet.co: This website offers tools and resources to help new parents making less than $40k access and save tax credits. New and expecting parents can sign up for texts by using this link via a web browser on their phone: letsgetset.link/getitback or by texting CTC to 844-921-5747 to stay informed about key updates in the portals , get links to resources, and text-in questions.
- 2021 Child Tax Credit Outreach Resources: Interested in spreading the word about the Child Tax Credit? This outreach hub features a CTC outreach toolkit, navigator training and resources to help people sign-up for advance payments, multilingual CTC outreach resources, research on CTC-eligible households, and more.
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When Can I File My Taxes For 2022
Many people are asking, when can I file my taxes for 2022? The Internal Revenue Service announced that the nations tax season will start on Monday, January 24, 2022, when the tax agency will begin accepting and processing 2021 tax year returns.
If you file your taxes online, you can start now and your tax return will be automatically transmitted to the IRS as soon as they open the new tax season. This is the fastest way to get your refund.
Online tax software offers advanced tools to help you file your taxes and pay the least amount possible. Online software companies, including IRS Free File partners, start accepting tax returns in early December.
Why Do I Owe Taxes This Year 2021
If you were overpaid, the IRS says it’s likely you may owe money back. Payments in 2021 were based on previous years’ returns, so some situations like an increase in income during 2021 or a child aging out of the benefit might lower the amount owed to the taxpayer. Do you share custody of a child or children?
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If I File My Taxes Now Do I Have To Pay Now Or Can I Pay By April 17
Yes, you can file now and pay later .
If you efile and choose direct debit, be certain to select the date you wish the payment to be withdrawn or it will all be withdrawn immediately upon processing.
You can also choose to efile and then mail in your payment whenever you want, or you can pay directly on the IRS website.
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How Do I File For An Income Tax Extension
Its actually not too hard to file for an extension. The easiest way is electronically requesting one via Free File, which will extend your filing date until Oct. 15. There are a couple things to know, though.
First, youll need to estimate your tax liability, even if you havent calculated it precisely. And youll have to pay any owed taxes by the regular deadline.
If that doesnt work, you can get an automatic six-month extension by using IRS Form 4868, which will also require you to estimate your tax liability based on the data available to you. The difference is, you wont have to make a payment immediately. You will, however, owe interest on your tax bill if you end up owing money.
If youre planning to file for an extension, dont drag your feet. In 2018, the online service went offline owing, in part, to a flood of people who had waited until the last moment.
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State Tax Return Deadlines
Don’t forget about your state tax return The due date for most state tax returns was April 18. However, eight states âDelaware , Hawaii , Iowa , Louisiana , Maine , , Massachusetts , and Virginia â give you more time to file. Check with the state tax agency where you live to learn more about state tax deadlinesâ¦and about penalties for missing them.
The Taxation And Revenue Department Encourages You To File Electronically Whenever You Can
Electronic filing is safe and secure, and it offers the fastest service for a refund. Access online filing to file over the internet at no charge . You may choose to file electronically through your tax preparer or by using approved software on a personal computer. Individuals who both file and pay their income tax electronically using our website, a personal computer or a tax professional have an extended filing deadline of April 30. If April 30th is on a Saturday, Sunday or legal state or national holiday, the due date is the next business day.
The Department offers two ways to file a return electronically, both allowing you to file either a refund return or a tax-due return. File electronic returns through the Departments internet website or the Federal/State Filing Program. Certain restrictions on who may file and the types of returns eligible for electronic filing depend upon the electronic filing program used by the Taxation and Revenue Department and Internal Revenue Service websites contain information about the electronic filing options.
You may pay taxes over the internet with Visa, MasterCard, Discover or American Express cards. A convenience fee covers the costs that the companies bill the state when a credit card is used. There is no charge if you pay by electronic check. An electronic check authorizes the Department to debit a checking account in the amount and on the date specified.
For additional information refer to our forms and publications.
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Can I File An Extension Past The Tax Deadline
Unfortunately, no. Tax extensions provide taxpayers six additional months to complete their tax returns, but they must be filed by the tax deadline. Taxpayers filing extensions must also include the estimated amount of money that they owe using IRS Form 1040-ES. Online tax software can also quickly calculate your estimated taxes.
If your deadline has passed, it’s too late to file an extension.
If You Owe More Than $50000 There Are Other Options
For people who owe more than $50,000, the options get more complicated. In the past, if you owed between $50,000 and $100,000, and could pay off your debt in 84 months or within the collection statute , you wouldnt get many questions from the IRS.
Taxpayers who owed more than $100,000 faced financial disclosure of their assets, income, and expenses to the IRS. The IRS would use the financial information to figure out their ability to pay by selling off or borrowing against assets and/or making monthly payments. These ability-to-pay agreements often took months to complete, and the financial disclosure and analysis were extensive for taxpayers and the IRS.
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What If I’m Late And I Am Expecting A Tax Refund For 2021
If you’re expecting money back from the IRS from your 2021 tax return, there are no penalties for filing late. In fact, you have three years to file your 2021 tax return before the IRS turns your tax refund over to the Treasury and your money is gone forever.
Your tax refund might be slightly delayed by filing late, but you should still expect to receive your money in four to six weeks.
You could be making good use of the money the IRS owes you, and the longer you wait to file your taxes, the more you lose out. Whether you use your tax refund to pay down a , start an emergency fund, make investments or even just treat yourself to a nice dinner or vacation , you want your money as soon as possible. Letting the IRS keep your tax refund longer only deprives you of possible interest and spending power.
Why File For An Extension
Filing an extension automatically pushes back the tax filing deadline and protects you from possible failure-to-file and penalties. Penalties for filing late can mount up at a rate of 5% of the amount of tax due for each month that you’re late.
- For example, if you owe $2,500 and are three months late, the late-filing penalty would be $375. x 3 = $375
- If you’re more than 60 days late, the minimum penalty is $100 or 100% of the tax due with the return, whichever is less.
- Filing for the extension wipes out the penalty file by the extension deadline.
TurboTax Easy Extension is a fast and easy way to file your extension, right from your computer.
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What If I Can’t Pay My Tax Bill
If you can’t afford to pay your tax bill in full on the deadline, don’t pull out your credit card or ignore the situation.
The IRS offers reasonable payment plans at much lower interest rates than most banks. You may even be able to settle the bill for less than you owe, called an offer in compromise, or request a deferment until you can make a payment. Offers in compromise and requests for deferment require additional paperwork and must be approved by the IRS.
The IRS is predicting significant delays in this year’s tax season, both because of unfinished past paperwork that has rolled into this year and because of the complexity of tax filing around last year’s child tax credits and economic impact payments. Taxpayers can expect longer wait times than usual for paper returns and to reach the IRS on the phone.
However, online filing remains the most efficient process, and is recommended by the IRS, which says 90% of people who e-file their tax return should get their federal refund within 21 days. In general, the IRS assures filers that the quickest and safest method for getting a federal refund is filing electronically and opting for direct deposit.
If your tax return was flagged by the IRS for errors, manual processing, or fraud detection, your refund could take longer.
Never return a phone call from someone claiming to be with the IRS. Instead, individuals should call the IRS directly at 1-800-829-1040, and businesses should call 1-800-829-4933.