Here’s Who Needs To Make A Payment
Taxpayers who earn or receive income that is not subject to tax withholding such as self-employed people or independent contractors should pay their taxes quarterly to the IRS.
In addition, people who owed tax when they filed their current year tax return often find themselves in the same situation again when they file the next year, so they may want to consider making estimated tax payments. Taxpayers in this situation often include:
- Those who itemized in the past but are now taking the standard deduction
- Two wage-earner households
- Employees with non-wage sources of income such as dividends
- Those with complex tax situations
- Those who didn’t increase their tax withholding
Allocate Estimated Tax Payments
A trust or decedents estate may choose to distribute estimated tax payments to beneficiaries.
To distribute the estimated tax payments to beneficiaries, the trust or decedents estate must file Form 541-T by the 65th day after the close of the current taxable year.
If a trust files by calendar year, it must file Form 541-T by .
You Owe Taxes On All Of Your Earned Income Even If The Irs Doesnt Know About It
Generally, youll receive tax forms like W2s and 1099s every year that will show all of your earned income in a given year. However, in some cases your income may go unreported to the IRS.
For example, if you make a living selling things out of your home or rent out a room in your house on a cash basis, its entirely possible that that income will go unreported to the IRS. That doesnt mean it becomes nontaxable, though.
Its your obligation as a taxpayer to report all of your earned income to the IRS and pay taxes on it. Although in some cases the IRS may never find out about your unreported income, if it does, at the very least youll be facing taxes and penalties. At worst, you could face prison time.
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Tax Filing Deadlines In 2022
Deadlines for filing taxes typically fall within the same, general range. When it comes to filing your 2021 tax return, these are the dates you need to know about.
- Receiving your W-2 Form: 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.
- Individual income tax returns: April 15 falls on a weekday in 2022, but it is Emancipation Day which is celebrated in Washington, D.C., causing all businesses and government offices to close. Therefore, the filing deadline for your 2021 personal tax returnForm 1040 or Form 1040-SRis Monday, April 18, 2022 .
- Partnership and S-corporation returns:Returns for partnerships and S-corporations are generally dueMarch 15. If you request an automatic six-month extension, though, this date is Sept. 15.
- Corporation income tax returns: For corporations, the due date is April 18, 2022. The extended deadline is Oct. 17, 2022. The deadline for C-corp returns is typically the 15th day of the fourth month following the end of the corporation’s fiscal year if the corporation operates on a fiscal year, rather than a calendar year.
Reasons Not To Get A Tax Extension
While you dont need one, there are a few reasons you may not want to file a tax extension:
You want more time to pay a tax bill. A tax extension to October 15 only gives you more time to file your tax return. If you owe a tax bill, the payment deadline is still Tax Day, so you need to pay what you believe you owe and you may owe fees and interest if you pay too little. Missing the deadline will also result in a penalty and interest on the amount you owe. If you need help paying, the IRS does offer payment plans.
Youre getting a tax refund. Theres no IRS penalty for filing after Tax Day if the IRS owes you a refund. So if you know that youre getting a tax refund, theres no need to do the work of getting an extension. Just make sure youre positive that youre getting a refund and always file within three years of the filing deadline, or you will lose your refund.
You want more time to contribute to retirement accounts or an HSA. The contribution deadline for most retirement accounts, like a Roth IRA, is Tax Day. A tax extension wont usually give you more time to contribute to aretirement account or a health savings account .
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Tax Year 2021 Filing Season Update Video
View the tax year 2021 Filing Season Update Video to learn about a wide range of topics including:
- Detailed updates related to personal income tax filings
- The expansion of electronic filing and payment requirements for a number of tax types
- A summary of the COVID relief efforts for small businesses
- Trustee tax return changes for 2022
- A review of important webpages and DOR contact information, and
- A brief overview of operations at DOR in response to the current pandemic.
What’s The Deadline If I File For An Extension
Taxpayers requesting an extension will have until Oct. 16, 2023, to file their 2022 tax return.
Fiiling an extension doesn’t push back your payment deadline, though. You still need to submit anything you owe on time to avoid late penalties. An extension just gives you more time to complete your return.
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Automatic Extension If You Work Outside The Country
If you work outside of the U.S. or in Puerto Rico, including people on military or naval duty, you will receive an automatic two-month extension without needing to fill out any forms. The two-month extension means you had until June 15, 2021, to file. If you need more time you can request a tax extension, which will give you four extra months, until October 15. Learn more about the two-month extension in IRS Publication 54.
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Ways To File An Extension Application
The IRS offers several ways to apply for an extension:
- IRS e-file: This is the IRS’s electronic filing program. You can choose either guided tax preparation or Free File fillable forms. Be sure to start the process on the IRS website. If you go directly to a company website, you won’t be participating in the IRS’s Free File option.
- Electronic payment: If you make an electronic payment, the IRS will automatically process a filing extension.
- E-file with tax software or a tax professional: Check your tax preparation software or talk with your tax professional about how to file for an extension.
- Paper filing: You can download and print a paper form from the IRS website. You can also order a paper copy of form 4868 from the Forms and Publications by U.S. Mail page or by calling 800-TAX-FORM . Fill it out and mail it to the IRS according to the mailing instructions included with the form.
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What Happens If You Miss The Oct 15 Tax Deadline
Don’t try to go past the Oct. 17 deadline which is technically Oct. 15 but delayed until Oct. 17 this year because the 15th is a Saturday.
If you filed an extension and you dont file your return, your penalty and interest calculations are grandfathered back to the original April 18 due date,” Steber said.
At this point, documents should be in taxpayers’ hands, including W2, 1099s, K-1s for investments in partnerships. Double-check your numbers and information.
Any missing information or mismatched information on IRS systems can be expected to trigger trouble, including the delay of any refund.
Some tax filers figure they can come close to a number, say what they think they received in stimulus cash, and imagine that the IRS will fix it if necessary. But that’s not a good bet, given all the problems the IRS has been facing.
Steber calls some tax troubles “self-inflicted delay” when tax filers don’t provide exact numbers or information.
The IRS noted that taxpayers who are filing now want to avoid mistakes when claiming the earned income tax credit, the child and dependent care credit, the child tax credit and the recovery rebate credit.
“In 2022, the message is clear: You need to be accurate,” Steber said. “There are no simple tax returns in the pandemic.”
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Deadlines To Claim A Refund Or Credit
To qualify for a refund or credit, you must file a return within:
- three years from the original return due date , or
- two years from the payment date.
For amended returns, you must file a claim for refund or credit within:
- two years after you had to file an amended Utah return based on changes to your federal return made by the IRS, or
- three years from the original due date of the return of a loss year to report a net operating loss carryback.
This website is provided for general guidance only. It does not contain all tax laws or rules.
For security reasons, TAP and other e-services are not available in most countries outside the United States.Please contact us at 801-297-2200 or for more information.
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Taxes 202: Here’s How To Get A Filing Extension From The Irs
Plenty of Americans leave their taxes until the last possible week. In a typical year, between 15 and 20 million people file their tax returns the last week before Tax Day, while another 20 million file after the due date.
The good news? For those who need more time, filing for an extension is quick and straightforward. And it will give you until October 17, 2022, to send your tax return to the IRS.
“People do have a tendency to wait until the last minute,” noted Eric Bronnenkant, head of tax at Betterment. “You can get an extension for six months or so, but one of the most important things to know about filing for an extension is that it’s not an extension to pay.”
In other words, if you owe the IRS this year, you still have to pay Uncle Sam by April 18 even if you get an extension until October. Here’s what to know about how to get an extension from the IRS.
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What Are The Penalties For Failing To File
If you aren’t going to get your tax return finished by April 18, it’s best to file for an extension because the failure-to-file penalty is stiff. It is based on the lateness of a tax return as well as the size of unpaid taxes from the due date.
The penalty rate is 5% of unpaid taxes for each month that a filing is late, capped at 25%. Take a taxpayer who owes $10,000 but doesn’t file for an extension if they file two months late, they would $500 each month for a total of $1,000 in penalties.
The 5% penalty is the most stringent fee the IRS levies against late filers, Rebecca Walser of Walser Wealth Management told CBS News.
Contribute To A Sep Ira
Self-employed individuals and small business owners who wish to save money with an easy and affordable retirement plan frequently use a Simplified Employee Pension IRA, or SEP IRA. A SEP IRA actually allows you to save more for retirement than a 401 plan offered by your employer. You may deduct up to 25% of your salary for 2022, or $61,000, whichever is less.
As a result, you may save more for retirement using a SEP IRA than you could with a regular or Roth IRA. Keep in mind that the contribution maximum for both regular and Roth IRAs in 2022 is $6,000 .
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Why Might A Tax Extension Request Be Rejected
Nine times out of 10, if you file on time and fill out the form correctly, you should have no issue getting an extension.
In most cases, applications are rejected for minor problems that can easily be fixed. If it comes down to a misspelling or providing information that doesn’t align with IRS records, the tax authority will usually give you a few days to sort out those errors and file the form againthis time accurately.
The IRS tends to take less kindly to unrealistic tax liability estimates. If it disagrees with your figures, your application for an extension may be denied and you could even be hit with a penalty.
S Corporation And Partnership Tax Returns Due
Business owners filing taxes for an S corporation or partnership have less time to do their taxes. March 15 is the deadline to file your S corporation tax return or Partnership return . If youâre an S corporation, see our full guide on S corp taxes and deadlines.
Note that S corporations and Partnerships do not pay taxes on their income. That tax is paid on the individual incomes of the shareholders or partners, respectively.
March 15 is also the deadline to file for an extension for S corp and partnership tax returns.
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Taxes 202: What’s The Deadline To File Taxes When Can You File
Learn the important dates for filing returns.
2023 is well underway, which means tax season is starting up. The IRS is not officially accepting 2022 returns yet, but it’s not too early to start getting your paperwork together.
This filing season is the first to benefit from the Inflation Reduction Act, which was passed in August and provided the IRS with additional staffing and resource.
“We’ve trained thousands of new employees to answer phones and help people,” Acting IRS Commissioner Doug O’Donnell said in a Jan. 12 statement. “While much work remains after several difficult years, we expect people to experience improvements this tax season.”
Here are important dates for the 2022 tax season, including when federal and state taxes are due, the earliest you can file your income taxes, and when you can expect a refund. For more on tax returns, learn how to set up an account on the IRS website, and how to file on your phone.
When Is Irs Free File Available
IRS Free File, a partnership between the IRS and leading tax-software companies, traditionally becomes available in January. The program allows taxpayers under a certain income threshold to file electronically for free, using software provided by participating providers.
Free File typically begins before tax season officially starts, so the partner companies hold the completed returns until they can be filed electronically with the IRS.
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How To File Your Tax Return Electronically
You might want to e-file your late return if you haven’t missed that deadline as well. Many taxpayers can e-file at IRS Free File if their AGIs were under $73,000 in 2021. Some other rules can apply as well, imposed by the individual software providers that participate in the Free File Alliance.
The IRS will accept e-filed returns until November. It will announce the exact November cutoff date sometime in October 2022.
Delay In Requirement For Forms 1099
On December 23, 2022, the IRS announced that calendar year 2022 will be treated as a transition year for the reduced reporting threshold of $600. For calendar year 2022, third-party settlement organizations that issue Form 1099-K are only required to report transactions where gross payments exceed $20,000 and there are more than 200 transactions. The IRS also issued frequently asked questions to help people who may receive Forms 1099-K.
Taxpayers must accurately report all income, even if they do not receive a Form 1099-K or other information return.
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Does My Ira Contribution Deadline Get Extended As Well
Contributions to Traditional and Roth IRAs for the prior year are due by the tax filing deadline regardless of whether or not you file for an extension. However, if you are a sole proprietor the deadline to contribute to a or SIMPLE IRA does get extended along with the tax filing if you file an extension.
Mistakes Lead To Irs Refund Delays
Take extra time to review both the recovery rebate credit and the child tax credit to avoid potential mistakes that could lead to long delays of your refund.
The IRS has mailed more than 250 million letters to help taxpayers match their IRS records for both the third stimulus payment issued last year and the monthly payments issued for the advance child tax credit, according to testimony made by IRS Commissioner Charles Rettig before the Senate Finance Committee on April 7.
Letter 6475 refers to the stimulus money paid out last year from March through December. Some people saw the money all at once others saw some “plus up” payments.
Letter 6419 refers to up to six monthly payments received in 2021 as an advance payment for the child tax credit. Those payments were made from July through December, often around the 15th of the month.
Rettig noted that taxpayers also can verify these amounts by accessing their online account through IRS.gov.
You also want to review your bank statements and financial records to double-check the payments received.
Last year, major headaches occurred when more than 10 million federal income tax returns for 2020 reported numbers that didn’t match IRS records for two Economic Impact Payments received in 2020. Each of these returns, the IRS said, then “required a manual review and resolution by an IRS employee.”
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