How To File Your Taxes
Whether you want to go through the IRS directly or use third-party tax prep software, you have plenty of options for filing.
- IRS Free File: If you are comfortable around tax forms, you can download your own free fillable forms through the IRS and file yourself. For anyone who has an adjusted gross income of $73,000 or less, you may qualify for free guided tax preparation through a partner site such as 1040Now.NET, ezTaxReturn.com , FileYourTaxes.com, FreeTaxUSA, and TaxSlayer.
Interest Income Tds Certificates/form 16a From Banks And Post Office
Individual taxpayers need to provide break-up of any interest income that they have received from different sources such as savings account, fixed deposits, etc. in the latest ITR forms. Collect interest certificates from banks and the post office to know the total amount received by you during the financial year via these instruments. Further, make sure to update and check your bank passbook/s for FY 2020-21 to report any other income such as interest from RBI bonds , tax exempt PPF interest etc. even if tax is not deducted. If tax is deducted on the interest earned from FDs, then you must also collect Form 16A/TDS certificates from the deductor. e.g. banks.
What I Still Need To Pay The Irs
Thats right getting an extension to file your tax return doesnt give you an extension on paying what you owe the government.
The IRS expects people to make an effort to pay what they owe, Betterments Bronnenkant said. That may be difficult for people who havent yet filled out their tax returns, but its best to make a good-faith estimate.
If your prior year is a good barometer for your current year, start with that as a way to come up with some sort of reasonable estimate, Bronnenkant said. Dont let perfect be the enemy of good enough.
For instance, if you estimate that you owe $10,000 but end up actually owing $11,000, youll be charged an underpayment penalty. But it will be less painful to face an underpayment penalty for $1,000 rather than the entire $11,000 that you owe, Bronnenkant noted.
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Estimated Tax Payments: What They Are How They Work And When To Pay
If you have a side hustle, do freelance work or own your own business, you should make quarterly estimated tax payments.
Income tax is regularly collected from US workers’ paychecks. But if you don’t work a traditional job, you may need to make your own income tax payments throughout the year, also known as estimated tax payments.
If you have a side hustle, take on freelance work or have your own business, your income likely isn’t automatically taxed by an employer. In this case, you should make estimated payments four times a year. If you have other revenue not subject to withholding — interest, dividends, capital gains, alimony, cryptocurrency or rental income — you also typically need to make quarterly estimated tax payments to the IRS.
Doing this not only minimizes your financial burden when tax day arrives, but it can help you avoid IRS penalties.
The estimated-tax filing process can seem complicated, but we’re here to simplify it for you. Here’s everything you need to know to calculate your taxes and file on time.
File Your 2018 Tax Return
The IRS estimates that unclaimed refunds from 2018 may total up to $1.5 billion. If you were due a refund for the 2018 tax year but didn’t file a tax return, you only have until April 18 to submit that old Form 1040 and claim your money. So if you havent filed, get to work! Miss the tax deadline, and the U.S. Treasury gets to keep your money.
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When Are Taxes Due In Your State
Be sure to find out when your local tax day is. Most taxpayers face state income taxes, and most of the states that have an income tax follow the federal tax deadline. Ask your states tax department: When are taxes due?
If you request a tax extension by April 18, you can have until October 17 to file your taxes.
However, getting a tax extension only gives you more time to file the paperwork it does not give you more time to pay.
If you cant pay your tax bill when its due, the IRS offers installment plans that will let you pay over time. You can apply for one on the IRS website.
If you request a tax extension by April 18, you can have until October 17 to file your taxes.
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Its A Good Year For Those Who Leave Their Taxes To The Last Minute Youre Getting A Two
Everyones default assumption is that April 15 is the tax filing deadline. But the actual deadline this year is Tuesday, April 17.
Heres why: April 15 falls on a weekend. When that happens, the official filing deadline is the Monday following.
But Monday, April 16 is Emancipation Day, a legal holiday in the District of Columbia. It marks the day that President Abraham Lincoln signed the Compensated Emancipation Act in 1862, which freed over 3,000 slaves in DC.
Despite the holiday, the IRS will still be open for business if you have questions or if youre in the mood to file your return a day early.
If you need more time to pull your return together and cant make the April 17 deadline, file for an automatic six-month extension to avoid a late filing penalty. That way, youll push your filing deadline to Monday, October 15.
But when you do, just make sure that youve already paid the IRS at least 90% of the taxes you owed for last year. Otherwise you could face a late payment penalty.
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Maximize Your Retirement Contributions
Speaking of retirement.
One great way to lower your tax bill while preparing for the future is to contribute the maximum to your tax-advantaged accounts.
Not only can you lower this years tax bill on contributions to traditional retirement accounts, but youll enjoy tax-free growth until retirement.
Alternatively, you can pay taxes on your retirement contributions now and enjoy tax-free withdrawals when its time to leave the workforce.
Your maximum contributions may depend on either or both the type of plan you use as well as your income.
For 2022, your maximum 401 contribution is $20,500 for those under 50 or $27,000 for those over 50.
Traditional and Roth IRAs top their contributions at $6,000 annually, or $7,000 if youre over 50. However, if your income is over $144,000 , you may be ineligible to contribute to a Roth IRA.
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 .
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When Is The Last Day To File Taxes In 2023
You can always get more time to file your federal return by filling out an extension request form, which will automatically give you a new deadline of October 18. Last year a record 19 million taxpayers asked for extra time. One thing to remember, however: The extension doesnt apply to payments.
If youre unable to pay your bill in full by the April 18 deadline, you can apply for a payment plan via the IRS website to make reasonable monthly payments. Interest charges will apply.
How Do I Calculate My Estimated Taxes
There are a few ways to calculate your quarterly tax payments depending on your business model and annual earnings.
- If you earn a steady income, estimate the tax you’ll owe for the year and send one-fourth to the IRS each quarter. For instance, let’s say you’ll earn $80,000, which places you in the 22% marginal tax bracket. You’ll owe $17,600 in federal taxes or $4,400 each quarter in 2022.
- If your income varies throughout the year, you can estimate your tax burden based on your income and deductions in the previous quarter. The IRS Estimated Tax Worksheet can help you do the math.
If you’ve overestimated your earnings at the end of the year, you can complete a 1040-ES form to receive a refund or apply your overpayment to future quarterly taxes. If you underpaid, the form can help you calculate what you still owe.
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If You Owe Pay As Much As You Can To Reduce Penalties
Although thereâs no penalty for submitting your taxes late when youâre expecting a refund, the IRS may assess penalties if you owe taxes.
Even if you miss the tax deadline, you should pay as much as possible as soon as you can. Taking this step can reduce any interest or penalties on your tax account, such as the Failure to File or Failure to Pay Penalty.
If you file your tax return late, the IRS may assess the Failure to File Penalty for failing to pay unpaid tax due on the original due date . Unpaid tax is the tax required to be reported on your return less any withholding, estimated tax payments, and refundable credits.
The IRS calculates the Failure to File Penalty as 5% of the unpaid taxes for each month that the tax return is late. However, the penalty wonât exceed 25% of your unpaid taxes.
You may also be assessed a Failure to Pay Penalty if you fail to pay taxes you report on your return by the original due date or an approved extended deadline, such as a federally declared disaster. Taxes that remain unpaid for a month will be assessed a Failure to Pay Penalty of 0.5% per month.
In months where both the Failure to File and Failure to Pay penalties apply, the Failure to File penalty will be reduced by 0.5% . So instead of a 5% Failure to File Penalty for the month, youâll be charged a 4.5%.
To get a better understanding of how penalties may affect your account, speak to a tax professional to determine which penalties may apply to your tax situation.
What If I Need More Time
Don’t let a looming tax deadline force you to rush through the tax filing process and make a mistake on your return. Simply request an extension.
The IRS typically grants a six-month extension of the tax filing deadline to anyone who requests it. You can request an extension electronically with TurboTax or use Form 4868.
Just keep in mind, the tax extension gives you more time to file your return, not more time to pay the tax you owe. You’ll need to estimate the amount you owe and make your payment by the tax filing deadline even if you file an extension.
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Request Your Tax Refund Before You Lose It
Itâs a good idea to file your taxes after the due date even if you expect a refund, but you donât want to wait too long.
The IRS usually allows you three years from the due date of your tax return to request a refund. After this time, youâll forfeit your tax refund. Your 2021 tax return was due on April 18, 2022, so you have three years from that date to request a refund. If you donât file your 2021 return by the April tax deadline in 2025, youâll lose your tax refund. The U.S. Treasury will own your money.
Note that if you donât owe money to the IRS but instead are owed money, the tax agency may still expect you to file a return.
If youâre missing any tax documents from a prior year, you can request them from your employer, bank or other third party, such as an educational institution or student loan provider. You can also request missing tax forms from the IRS by using the Get Transcript Online tool or creating an IRS online account.
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When Is The Last Day To Pay My Taxes
If you owe taxes, the last day you have to pay what you owe is Wednesday, April 15, 2015. Even if you cant get your taxes completed on time, and you decide to file an extension, you still need to pay the amount you owe on the 15th in order not to incur late and penalty fees. If you dont know the exact amount you will owe, that isnt an excuse the IRS will accept. You still need to estimate what you will owe and pay that amount, making sure your estimate comes within 90% of what you owe to avoid penalties . For this reason, its better to overestimate than underestimate when calculating what you think you may owe.
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File Electronically And Choose Direct Deposit
To speed refunds, the IRS urges taxpayers to file electronically with direct deposit information as soon as they have everything they need to file an accurate return. If the return includes errors or is incomplete, it may require further review that may slow the tax refund. Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing.
Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers. The IRS has incorporated recent changes to the tax laws into the forms and instructions and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov. For the latest IRS forms and instructions, visit the IRS website at IRS.gov/forms .
You Can Extend Your Filing Deadline But Not Your Payment Deadline
Tax deadlines have a way of creeping up on you, so filing for a tax extension might be something you need to do at some point in your life.
If you need more time to prepare your returnwhether you are busy with school, travel, or a family emergency, or are simply disorganizedyou can request a six-month filing extension by submitting the proper form to the Internal Revenue Service . Of course, theres also a deadline for that, but the good news is that getting an extension is easier than you might think. Heres what you need to know, from dates and forms to special rules.
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The 2022 Federal Income Tax Brackets
Each year, the IRS releases adjusted income tax brackets so taxpayers know what to expect come April 15. Below, weve outlined four tables that show your expected tax obligation based on your income and filing status.
Bear in mind that the IRS uses progressive taxes, which means as your income rises, so does your tax bill. But it doesnt all rise evenly.
For example, if youre a single filer earning $90,000, your top tax rate is 24%. But as you can see in the chart above, youll actually pay four different tax rates:
- 10% on the amount under $10,2765
- 12% on the amount between $10,275 and $41,775
- 22% on the amount between $41,775 and $89,075
- And 24% on the amount between $89,076 and $90,000
That makes a big difference in your tax bill. Instead of paying $21,600 24% of your entire income your tax bill will be closer to $15,435.
When Is The Deadline For Claiming Stimulus Or Child Tax Credit Money
The deadline for claiming your money depends on if youre required to file a tax return or not. Youre generally not required if you file single and earn less than $12,550 per year.
You have until Tuesday, Nov. 15, to complete a simplified tax return to claim your missing stimulus or child tax credit money if youre not typically required to file taxes. Thats roughly one month away. To help, the IRS is keeping the free file site open until .
If you filed a tax extension earlier this year or havent filed yet, your deadline to submit your tax return if youre required to file was . That was also the last day to file Form 1040 to avoid a late-filing penalty.
If you were affected by one of the recent natural disasters, such as Hurricane Ian, you have until Feb. 15, 2023, to file. If you live in an area covered by Federal Emergency Management Agency disaster declarations, like Kentucky or Missouri, you have until to file.
You could soon miss out on your stimulus and child tax credit money.
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How To Get Help With Your Taxes
Depending on how much money you make, you may qualify for free help filing your taxes, courtesy of Uncle Sam. If your adjusted gross income is below $73,000, you should be able to use the IRSs Guided Tax Preparation program, which will help you complete your return for free through a partner site.
The IRS also has free electronic forms available for taxpayers at every income level.
If you want more general information that will help you sort through tax season jargon, check out this guide from The Wall Street Journal newsroom.