When Is The Tax Filing Deadline In 2022
The deadline to file 2021 income tax returns is Monday, April 18, for most people, three days later than the normal April 15 deadline for filing taxes.
The later date is a result of the Emancipation holiday in the District of Columbia. By law, Washington, D.C., holidays affect tax deadlines for everyone the same way federal holidays do. Taxpayers who live in Maine or Massachusetts have until April 19 to file because of a holiday celebrated in those states, Patriots’ Day.
The IRS has extended the deadline until May 16 for victims of the late 2021 Colorado wildfires as well as victims of the December tornadoes in parts of Illinois, Kentucky, and Tennessee. The extension applies to various individual and business tax returns and tax payments deadlines.
How Do I Do My Tax Return Australia 2022
How do I lodge a tax return in 2022? The quickest, easiest way is to lodge your return online at myTax through the ATO website. Youll be prompted to create a myGov account and link it to the ATO. Then just follow the instructions to fill out your return online.
Will tax returns be bigger in 2022?
In 2022, taxpayers experienced a 13.7% increase in the average federal tax refund amount. Through March 4, taxpayers received $3,401. Indeed, you could receive a larger refund for your 2021 taxes after sending them.
Third Coronavirus Stimulus Check
Millions of Americans in 2021 were eligible for a third stimulus check worth up to $1,400 per every qualifying individual in their household. If you havent yet received it or are missing the full amount for which youre eligible, youll be able to by claiming the 2021 Recovery Rebate Credit.
Start by calculating how much youre entitled to receive based on your households income and number of dependents. Single filers were eligible for the full $1,400 credit so long as their AGI didnt surpass $75,000, while married filers couldnt make more than $150,000 and heads of households had to earn less than $112,500. Dependents were also eligible for a $1,400 payment. Then, keep an eye out for Letter 6475 from the IRS, which should detail how much youve already received.
Perhaps the IRS didnt know you adopted a child or had a baby in 2021 maybe your income situation declined. All those circumstances could combine to make you eligible for additional stimulus money.
Unlike child tax credit payments, the IRS doesnt expect taxpayers to repay any overpaid money. The IRS, however, will not automatically calculate the 2021 recovery rebate credit for you, meaning its up to you to make sure you dont leave any money behind.
Experts say Americans can amend a submitted tax return if they realize that they forgot to claim a missing stimulus payment after the fact though that could lead to longer wait times.
Read Also: What Happens If Your Late Filing Taxes
Free File Available January 14
IRS Free File will open January 14 when participating providers will accept completed returns and hold them until they can be filed electronically with the IRS. Many commercial tax preparation software companies and tax professionals will also be accepting and preparing tax returns before January 24 to submit the returns when the IRS systems open.
The IRS strongly encourages people to file their tax returns electronically to minimize errors and for faster refunds as well having all the information they need to file an accurate return to avoid delays. The IRS’s Free File program allows taxpayers who made $73,000 or less in 2021 to file their taxes electronically for free using software provided by commercial tax filing companies. More information will be available on Free File later this week.
The Costs Of Paying 2021 Taxes Late
Although a tax extension gives you up to six extra months to file, it doesnt give you any extra time to pay. Taxpayers are still required to pay the estimated amount owed by Tax Day, which was April 18.
While that can seem odd because you wont know exactly what you owe until you file, youre supposed to take your best guess. If you end up owing more than you paid, the IRS charges interest and failure-to-pay fees on the unpaid amount.
Failure-to-pay fee. The failure-to-pay fee is equal to 0.5% of the tax owed after the due date for each month, or part of a month, that the tax remains unpaid. This amount can total up to 25% of what was owed.
For example, if you file your tax return on Oct. 17 without making a payment on Tax Day and end up owing $1,000, youd also be required to pay 0.5% for each of the six months the total amount owed went unpaid. The final fee would likely be about $30.
Interest charges. Additionally, youll be charged interest on any unpaid amounts. The interest rate for individual taxpayers is the federal short-term rate plus 3%. As of Oct. 1, taxpayers will owe 6% per year on underpayments.
If, as in the example above, you file on Oct. 17 and owe $1,000 in taxes, youd also owe six months of interest. The interest charges would be based on half of the annual rate of 6% approximately 3% of $1,000, so would total $30.
The main benefit of setting up a payment plan is to avoid other collection attempts by the IRS.
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Income Tax Return Filing Dates
- 1 July 2022 to 24 October 2022
- Taxpayers who file online
- Taxpayers who cannot file online can do so at a SARS branch
If you are being auto-assessed, see all the info you need to know on our How does the Auto-Assessment work webpage. If you are not in the auto-assessment group and need to submit a return, see our info for provisional and non-provisional taxpayers on the 2022 Tax Filing Season media release.
Is Tax Filing Compulsory
If you dont owe taxes to the government, you may not need to file a tax return. However, there are other reasons why you may need to file a return and they include if:
- You are expecting a tax refund. Duh! CRA wont chase you around if you dont owe them. If you want whats yours i.e. tax refund, you better go get it!
- You are eligible for and want to collect government benefits including GST/HST credits, Canada Child Benefit, GIS or Allowance benefits.
- You have an open Home Buyers Plan or Lifelong Learning Plan account through your RRSP.
- You are contributing to the Canada Pension Plan .
There are a few other scenarios where a tax return filing is required even if you do not owe taxes. If in doubt, just file there are many ways to do it for cheap, or even free.
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Tips For Filing Your Taxes
- Organize Make sure that you have everything you need before you even begin working on your returns.
- E-File E-filing comes with many benefits, such as ease of use, quick filing, and identity protection.
- Sign Up For Direct Deposit If you want to receive your tax refund in the quickest amount of time, you need to sign up to have it direct deposited.
- Ask Questions if Needed If you are unsure about something, ask questions. It is always better to be safe than sorry.
Natural Disaster Victims Get Tax Filing And Payment Extensions
If the Federal Emergency Management Agency declares a disaster area following a natural disaster, the IRS usually offers tax relief for the disaster victims in the form of tax filing and payment extensions. In the case of certain recent natural disasters, the April 18 tax filing and payment deadline was extended for individuals and businesses residing or located in the disaster area.
- Wildfires and straight-line winds in New Mexico that began on April 5 .
Also Check: How To Pay Taxes Quarterly
Advantages Of Early Filing
There are many advantages to filing your business taxes early and virtually no downside. Filing your business income tax return early eliminates the need to file for a tax extension. While reasons for requesting an extension vary by the enterprise, for many small businesses the need is driven by simply not getting tax documents gathered on time.
No business wants to make mistakes when filing its tax return. Rushing to meet the tax deadline makes it more likely that errors, perhaps costly ones, will occur. Getting started early means no hurrying and less likelihood of mistakes. Just make sure your bookkeeping is up-to-date and youâll be prepared to have your business taxes filed as soon as possible!
What To Do If You Have Not Received Your W
Before filing your tax return, you have to have all of the documents needed, including your W-2. All of your employers are responsible for sending you this, yet they do have until Feb 2 to do so. If you have not received your W-2 by then, you can follow these steps.
Contact Your Employer If you have not received your W-2 yet, you need to contact your employer to see when they put it in the mail. Its possible that it was returned to them due to incorrect mailing details. Once you have contacted them and found out the status, please give it a reasonable amount of time for your W-2 to arrive.
Contact The IRS If you have not received your W-2 after Feb 14, it is time to call the IRS at 800-829-1040 for assistance. When calling, make sure you have your name, address, social security number, and phone number. Additionally, you will need your employers name, address, phone number, employment date, the estimated wages earned from them during the year, and the federal income tax withheld. To make an estimation, you should refer to your most recent pay stub.
File Your Return Even if you do not have your W-2, the IRS expects you to file by Apr 18 or request an extension. After that, you can use Form 4852 Substitute for Form w-2, Wage, and Tax Statement. This form should be attached to your return however, keep in mind your refund may be delayed since the IRS has to verify your information.
Also Check: New York State Tax Form
What Is The Best Way To File My Tax Returns And Other Documents
More than 87% of all returns filed in Vermont are e-filed. Electronic filing through a commercial software vendor or your tax preparer is a secure way to file federal and Vermont returns. On average, e-filers get their refunds about two weeks faster than filers using paper forms because returns transmitted electronically get to the department more quickly, with fewer errors, and are more easily processed.
The Department continues to make improvements to make online filing easier for all taxpayers. You may use commercial tax software or a tax preparer to e-file Vermont personal income tax, but some filings may be made for free through myVTax as follows:
- Homestead Declaration
- Landlord Certificate
- An extension to file personal income tax
How Bench Can Help
At Bench, our team of bookkeepers completes monthly books and prepares financials for tax filing. We help you maximize every available tax deduction, and provide a year-end financial package with everything needed to file your business taxes. If youâre worried about missing the deadline, we can even complete your tax filings for you.
If you have any additional questions, Bench customers also get access to unlimited on-demand tax consultations. Start your free trial today.
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The Payment Deadline Is April 30 2022
If you have a balance owing, your payment is due on April 30, 2022.
If you or your spouse or common law-partner are self-employed, your payment is still due on April 30, 2022.
Since April 30, 2022, falls on a Saturday, in both of the above situations, your payment will be considered paid on time if we receive it, or it is processed at a Canadian financial institution, on or before May 2, 2022.
If you filed your 2020 return and qualified for interest relief, you have until April 30, 2022, to pay any outstanding income tax debt for the 2020 tax year to avoid future interest charges. This applies to the tax owing for the 2020 tax year only, and not for any previous tax year.
Will Some Need To Repay The Advance Child Tax Credit
It’s possible that some might need to do so.
“If you do not qualify for repayment protection” the IRS notes, “you will need to report the entire excess amount on your 2021 tax return as additional income tax. This additional income tax will reduce the amount of your tax refund or increase your total tax due for 2021.”
A group of people could qualify for a safe harbor that protects them from repaying the entire advance payment back.
You could qualify for full repayment protection, for example, based on your 2021 modified adjusted gross income. That applies if you are single and your income is at or below $40,000. For the head of household, the income needs to be at or below $50,000. And for married couples filing jointly, the income would need to be at or below $60,000.
The IRS issued a 21-page fact sheet in January to address frequently asked questions about the child tax credit.
For more information about the 2021 Child Tax Credit, visit IRS.gov/advctc.
Taxes 2022: Will you have to repay child tax credit money?
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If You Cant Pay In Full By 31 January 2022
If you already know that you will not be able to pay in full by 31 January 2022, you can set up a payment plan online without speaking to anyone by using the self-serve Time to Pay facility, provided you meet criteria to use this service.
Find out what to do if you cannot pay your tax bill on time.
If you have an outstanding amount after the payment due date, interest will apply, even if you are in a payment plan.
Self-serve Time to Pay allows you to choose the length of the agreement and works out the monthly payments. We recommend you repay any debt as quickly as possible, while making sure the payments are affordable.
Why Are Taxes Due April 18 Instead Of April 15 This Year
Tax Day is usually on April 15. But when a tax deadline falls on a Saturday, Sunday or holiday, it’s pushed back to the next available business day. April 15 was on a Friday this year, so the weekend rule didn’t apply. But Emancipation Day was observed in the District of Columbia on April 15. The holiday honors the end of slavery in Washington, D.C. Since April 15 was a legal holiday in D.C., the IRS couldn’t require tax returns to be filed that day. The next business day was April 18 so that became the new federal income tax filing deadline this year for most people.
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Do You Have To Claim Unemployment On Your Taxes
Unlike last year, a special tax break doesn’t exist for up to $10,200 of unemployment benefits. The temporary tax break applied only for those with modified adjusted gross incomes of less than $150,000 in 2020 and those who also received unemployment benefits last year.
This year, jobless benefits received in 2021 will be taxable on the 2021 federal income tax return. If you didn’t have taxes withheld, and most people don’t, you could be looking at a bigger tax bill than you’d expect.
When Are Estimated Taxes Due
If youre self-employed or earning income outside of your regular paycheck, youll likely need to pay estimated taxes each quarter. This includes small business owners, freelancers and independent contractors. According to TurboTax, income that youll need to pay estimated taxes on includes:
- Interest income
- Gains from sales of stock or other assets
- Business earnings
- Taxable alimony
The IRS requires you to pay at least 90% of estimated taxes throughout the year. Not sure when to file estimated tax payments? The current estimated tax payment due dates are:
To learn more about estimated taxes, you can read through the IRS website.
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When To Expect Your Refund And How To Get It Fast
If you submit your tax return electronically and without errors, taxpayers should expect to see their refund within 21 days of when they file, so long as they choose direct deposit. The exact timeline, however, depends on how you file and how you want your refund paid out. Heres an estimate of what you can expect:
- One to three weeks, for those who e-file with direct deposit
- Three weeks, for those who paper file with direct deposit and
- Six to eight weeks, for those who e-file or paper file with a refund check in the mail.
Important to note, the IRS cannot legally issue any child tax credit or earned income tax credit refunds before mid-February a legal requirement designed to prevent the agency from paying out any fraudulent refunds.
Last year, the average tax refund topped $2,800, the agency said.
What Are The Consequences Of Filing Late
What happens if you must file your tax return late or if you donât file taxes at all? You could end up with an additional bill from the IRS. The one thing you must not do is ignore your tax situation. Not filing your return on time generally means any taxes due were not paid, and that can lead to serious penalties.
The IRS will levy both a late filing penalty and a late payment penalty. How much you will have to pay depends on how late your filing and payment are and how much tax you owe.
Without filing for an extension, missing the tax deadline incurs a penalty. Forms 1120 and 1040 have a penalty of 5% of the unpaid tax for each month the return is late. Forms 1120-S and 1065 have a penalty of $210 per shareholder or partner per month late up to 12 months. That amount can add up very quickly. Failure to pay the amount of tax owed on time results in a penalty of 0.5% of the amount due for each month it is unpaid.
There is some good news for filers of Form 1120 or 1040. These penalties max out at 25% of the total tax owed. In a worst-case scenario, you max out at the 5% penalty for missing the tax deadline after five months. That âfailure to payâ penalty keeps going for quite some time if not resolved, with a total of 45 months, or close to four years.
What if your business is a new corporation and you didnât have any taxable income? You must still file a tax return. New partnerships do not need to file a separate return.
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