What Happens If You Miss The Tax Filing Deadline And Are Owed A Refund
If you overpaid for the 2022 tax year, there’s typically no penalty for filing your tax return late. However, you should file as soon as possible.
Generally, you have three years from the tax return due date to claim a tax refund. That means for 2022 tax returns, the window closes in 2025. After three years, unclaimed tax refunds typically become the property of the U.S. Treasury.
What Are The Benefits Of Getting Started On Your Taxes Early
Tax season is stressful. One of the great benefits of getting started on your taxes early is stress minimization. A mental weight is lifted when you know your tax filing is completed ahead of the due date and you can focus on your business instead of tax obligations.
What if you owe tax? First, by getting started early, you know how much you owe the IRS and have time to put together a payment plan. You donât actually have to pay the money owed until the due date. By completing your tax forms and filing them, you can figure out the best ways to come up with the funds rather than go into panic mode on April 14.
Your tax professional likely has more availability to help early filers as well. Getting an appointment with a tax professional is much easier in January or February than in March or April. In fact, getting ahead on your tax prep can save you money in the long run, too. You avoid IRS penalties and, by avoiding any last-minute rush fees, you will often pay less for tax preparation.
How Do I Prevent Tax Fraud
It’s easy to procrastinate filing your taxes, but putting it off makes you more vulnerable to fraud. If a scammer gets hold of your Social Security number and you haven’t filed a tax return yet, they could easily file a fake one in your name to get a refund.
Scam calls are ubiquitous during tax season. Keep in mind that if the IRS needs to get in touch with a taxpayer, it sends a letter not an email, not a phone call, and definitely not a message over social media. Especially when it’s investigating cases of tax fraud or performing an audit.
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.
The US Department of Justice says the IRS never discusses personal tax issues through unsolicited emails or texts, or over social media. Always be wary if you are contacted by someone claiming to be from the IRS who says you owe money.
If you receive an unexpected and suspicious email from the IRS, forward it to .
Recommended Reading: Why Did My Property Taxes Go Up In 2021
Requesting An Extension Of Time For Filing A Return
Effective for tax year 2022, Revised Statute 47:103 allows a six-month automatic extension of time to file the individual income tax return. If you know you cannot file your return by the due date, you do not need to file for an extension. No paper or electronic extension form needs to be filed to obtain the automatic filing extension. An extension does not allow an extension of time to pay the tax due. Payments received after the return due date will be charged interest and late payment penalty.
Why It’s Critical To Have All Tax Forms Before Filing
When filing your return, it’s important to accurately report details from all tax forms, such as the W-2 from your job, 1099-NEC forms for contract work and 1099-G for unemployment income.
Known as “information returns,” these forms are sent to taxpayers yearly by employers and financial institutions to report taxable activity, with copies going to the IRS. Your tax return should match these forms, assuming the details are correct.
When the IRS receives your income directly from reporting companies, the system automatically flags mismatching returns. That’s why it’s better to wait and include the correct details, experts say. Otherwise, you’ll risk possible error notices and penalties later.
Also Check: California Tax On Capital Gains
Contribute To Or Open An Ira By Tax Day
Contributions to a traditional IRA can be tax-deductible. You have until the April 18, 2022, tax deadline to contribute to an IRA, either Roth or traditional, for the 2021 tax year. The maximum contribution amount for either type of IRA is $6,000 or $7,000 if you’re age 50 or older. See all the rules here.
» MORE:Learn how IRAs work and where to get one
Apply For An Extension Of Time To File An Income Tax Return
If you cannot file on time, you can request an automatic extension of time to file the following forms:
- Form IT-201, Resident Income Tax Return
- Form IT-203, Nonresident and Part-Year Resident Income Tax Return
- Form IT-203-GR, Group Return for Nonresident Partners Note: Group agents must enter the special identification number assigned to the partnership in the Full Social Security number field.
- Form IT-204, Partnership Return
- Form IT-205, Fiduciary Income Tax Return
You May Like: What Is Self Employment Tax
When Are Taxes Due
2020 was an eventful year for taxes, from extensions and exemptions to loans and stimulus checks. Wondering how all of those changes might affect your tax deadlines for the 2020 tax year, taxes youll file in 2021? If youre wondering, When are taxes due, anyway? here are the important dates at a glance.
Recommended Reading: Do You Have To Pay Taxes On Plasma Donations
What’s The Fastest Way To File My Tax Return
The fastest and most accurate way to file your tax return is to file electronically.
E-filing your tax return with the IRS is more secure than paper filing. Because the tax return is electronically transmitted to the IRS, you don’t have to worry about it getting lost in the mail or arriving late. You’ll also get confirmation right away that the IRS has received your return and has started processing it.
If you’re waiting for a tax refund, the fastest way to get your money is to have it electronically deposited into your bank account. The IRS typically issues 90% of refunds in less than 21 days when taxpayers combine direct deposit with electronic filing.
Also Check: Is Day Care Tax Deductible
Does Your Teenager Need To File An Income Tax Return
Luckily, most teenagers dont earn enough income to be required to file a tax return. Generally, any Canadian who earns less than the basic personal credit doesnt have to file a return. Some exceptions do apply of course. Check out the full details on the Canada Revenue AgencysDo you have to file a return?webpage.
Should your teenager file an income tax return? Definitely!
- They could get a tax refund. If your teen has deductions for income tax, EI, or CPP and didnt make a lot of money, they may be entitled to a refund.
- They can build some RRSP room. RRSP contribution room starts building as soon as income is reported, regardless of age.
- They can register for benefits. Filing a tax return registers your teen in CRAs system. Once they turn 19, theyll be automatically considered for the GST/HST credit if theyve filed a return the previous year.
Make it a teachable moment. Involve your teen in the process of filing their return.
If your teen is a university student, be sure to prepare their return before yours if you plan to transfer tuition credits. Youll need to enter certain numbers from their return into your return to complete the process. If they plan on carrying forward those tuition credits to a future year when they need to use them, theyll need to file a return and report the amounts from their T2202 or official tax receipts.
Which TurboTax is Best for You?
Tax Id Or Employer Identification Number
Before you file an estate income tax return, you need a tax identification number for the estate. An estate’s tax identification number, also called an employer identification number , comes in this format: 12-345678X. You can apply for this number online, by fax or by mail. See how to apply for an EIN. Use the tax ID number when filing Form 1041.
You May Like: States With The Lowest Income Taxes
Protect Yourself From Tax
Tax ID theft occurs when someone steals your personal information to file a tax return using your personal data. Usually, the fraudulent tax filer will use your Social Security number to file your return in order to collect a refund. To protect yourself from tax ID theft, you can obtain a six-digit Identity Protection PIN from the IRS. IP PINs are known only to you and the IRS so the IRS is able to confirm your identity when you file your return. Learn more about how the IP PIN works and how to apply.
Recommended Reading: Do You Have To Pay Taxes On Plasma Donations
How Can I File My Taxes
The IRS accepts tax returns filed one of two ways:
A reported 88% of individual tax returns are e-filed per year. Any tax return filed by a tax professional in an H& R Block tax office, using the H& R Block tax software, or through the H& R Block online filing program is usually e-filed. However, you can always choose to have your return printed to mail yourself.
E-file is the quickest filing method and typically helps you receive a tax refund faster.
Also Check: Tax Filing Deadline 2021 Extension
When Will I Get My Tax Refund
Online filing remains the most efficient process, and is recommended by the IRS, which usually issues refunds to most people who e-file their returns within a few weeks. 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. You can contact the IRS to check on your refund in this case.
To find out when your refund is coming once tax season begins, use the tracking tool on the IRS website beginning 24 hours after e-filing your return. You’ll need your exact refund amount, Social Security number or taxpayer ID number, and filing status.
How Do I Contact The Irs About My Child Tax Credit Questions
You may have questions about your child tax credit eligibility, a missing check or changes to your information. Your first thought may be to contact the IRS, but theres limited live assistance due to the tax return backlog, delayed stimulus checks and unemployment tax refunds. The IRS has not announced a separate phone number for child tax credit questions, but the main number for tax-related questions is 800-829-1040.
Instead of calling, it may be faster to check the IRS website for answers to your questions. And remember that the Update Portal can help with eligibility, payment history and updating your personal information online.
Also Check: Capital Gains Tax In California Real Estate
Tax Day For Maine And Massachusetts Residents
Residents of Maine and Massachusetts got an extra day this year until April 19 to file their federal income tax return. Why? Because Patriots’ Day, an official holiday in Maine and Massachusetts that commemorates Revolutionary War battles, fell on April 18 this year. So, for the same reason Tax Day was moved from April 15 to April 18 for most people , the IRS couldn’t set the tax filing and payment due date on April 18 for taxpayers in those two states. As a result, the deadline was moved to the next business day for Maine and Massachusetts residents, which was April 19.
When Will The Irs Start Accepting 2023 Tax Returns And Issuing Refunds
The IRS usually starts accepting tax returns during the last week of January. If major new tax legislation is passed at the end of the year, however, this could push the start of tax season back by a week or two. So, early tax filers who are a due a refund can often see them as early as mid- or late February. However, taxpayers with the Earned Income Tax Credit or Child Tax Credit generally have their refunds delayed by about one month while the IRS confirms eligibility for these credits.
Although the last two tax filing seasons were significantly impacted by the Covid-19 pandemic, and the IRS extended both deadlines, the IRS is not expected to extend the tax filing deadline for 2023.
The below chart shows an estimated timeline for when a taxpayer is likely to receive their refund, based on the information we have now, and using projections based on previous years- and depending on when a person files their return. If your IRS income tax refund is delayed after youve filed, ask your tax professional, or simply use the Wheres My Refund? tool on the IRS website. Or download the IRS2Go app to check your refund status.
Most Americans who are expecting an income tax refund receive it by direct deposit in as little as 2 weeks, although it can take longer during the peak of the filing season, which starts in late March. So its a good idea to e-file your tax return as soon as you have all of your tax documents .
Read Also: State Of California Tax Calculator
When Can You File Taxes
Most taxpayers know that January marks the start of return filing, but theyre not exactly sure of when. So, what naturally follows is the question When is tax season? and When can I file my taxes?
Read on for the answer to When will I get my tax return? and more details about the IRS refund process.
What If I Need Information From The Cra Or Revenu Qubec
You will need to provide a copy of the death certificate, the deceaseds social insurance number, and a copy of the document proving that you are the legal representative.
TurboTax is the number one selling software in Canada. From do it yourself to do it for me we have you covered. From the first time filers to tenured individuals, we have every possible tax situation addressed. Here is everything you need to know about our software and our support options.
With more than 20 years experience helping Canadians file their taxes confidently and get all the money they deserve, TurboTax products, including TurboTax Free, are available at www.turbotax.ca.
Also Check: State Of North Carolina Income Tax
What Is Tax Season
Tax season is the time period, generally between Jan. 1 and April 15 of each year, when individual taxpayers traditionally prepare financial statements and reports for the previous year and submit their tax returns. In the U.S., individuals typically must file their annual tax return by April 15 of the year following any reportable earnings. Tax returns submitted after the end of tax season are subject to late penalty fees and interest charges.
Nonresident Athlete Individual Income Tax
A nonresident individual who is a member of the following associations is considered a professional athlete and is required to electronically file a Louisiana income tax return, IT-540B reporting all income earned from Louisiana sources:
- Professional Golfers Association of America or the PGA Tour, Inc.
- National Football League
- East Coast Hockey League
- Pacific Coast League
Income from Louisiana sources include compensation for the services rendered as a professional athlete and all income from other Louisiana sources, such as endorsements, royalties, and promotional advertising. The calculation of income from compensation is based on a ratio obtained from the number of Louisiana Duty Days over the total number of Duty Days. Duty Days is defined as the number of days that the individual participated as an athlete from the official preseason training through the last game in which the individual competes or is scheduled to compete.
You May Like: Washington State Capital Gains Tax 2022
Do Not Risk Having Your Benefits And Credits Interrupted
Doing taxes on time is the best way to ensure your entitlement to benefits and credits, like the Canada child benefit , the Old Age Security pension payments, and the goods and services tax/harmonized sales tax credit, are not interrupted. Even if you owe tax, dont risk having your benefits and credits interrupted by not filing. If you cannot pay your balance owing, the CRA can work with you on a payment arrangement.
Calendar Year Vs Fiscal Year
Keep in mind that there is a difference between the calendar year and fiscal year filing dates. The IRS defines a calendar year as of January 1 through December 31. It considers a fiscal year as 12 consecutive months ending on the last day of any month except December.
C corporations filing with a calendar year must file or extend their tax return by Those operating under a fiscal year system must file or extend the return on or before the 15th day of the fourth month after the close of your fiscal year.
Businesses can use either form of the tax year to determine annual income unless a certain type of tax year is required. Tax years are âadoptedâ by filing the initial tax form using that tax year. Once a particular tax year is chosen, you may need IRS approval in order to change it by filing IRS Form 1128.
Changing your tax year is fairly straightforward, but be sure youâve followed IRS regulations to do so. According to the IRS, the following actions do not constitute adopting a tax year:
- Filing an application for an Employer Identification Number
- Filing an application for a tax extension on an income tax return
- Paying estimated taxes for a tax year
Most businesses can adopt a calendar year, and there are situations in which adopting a calendar year is mandatory. These include:
- Lack of recordkeeping
- The current tax year does not qualify as a fiscal year
- The IRS Code or income tax regulations require a calendar year
Read Also: When Does Tax Season Start 2022