When Does Tax Season Start 2022

When Is Tax Season 2022

To start with, income tax season is the period when individual taxpayers in the US prepare their financial statements and reports for the previous year. This is the period when taxpayers are expected to pay their tax returns.

Typically, taxpayers in the US are expected to file their tax returns between January 1st and April 15th every year. However, if the deadline falls on a public holiday or a weekend, itâs automatically moved to the coming business day. For example, in 2022, Washington DCâs Emancipation Day falls on April 16th. Being a Saturday, the holiday will be observed on the closest weekday in the Capital, which is April 15th. During such holidays, federal offices, including the Internal Revenue Services , remain closed.

So, when does tax season 2022 start? Due to the reasons explained above, the tax season for this year starts on January 24th. When does tax season end? Taxpayers have until April 18th to file their tax returns for 2021 and also surrender any due taxes. If a taxpayer files their returns after the deadline, theyâre charged late penalty fees or interest charges.

Only residents in Massachusetts and Maine are not subject to the tax season 2022 deadline. This is because April 18th is Patriotsâ Day in these two states. As such, residents here have until April 19th to file their returns.

Turbotax Federal Free Edition

Like H& R Block, TurboTax has a Free tax filing option that allows you to file your federal return and one state return for free. However, the free option only supports simple returns with form 1040. The free option includes one free state return. In addition, TurboTaxs free option supports form 1040 with some child tax credits.

Why Should You File Early

There are several reasons you might want to file your tax return early.

• You want to get your refund sooner. The IRS process tax refunds as tax returns come in and typically goes in the order the tax return is received.
• You want to file by Febuary 15th to avoid having to make a fourth quarter estimated tax payment.
• You just want to get your taxes over with.
• You need a filed tax return showing proof of income .
• You need to figure out how much money you owe.

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What If I Missed The Us Tax Filing Deadline For 2022

Filingor payinglate taxes can result in penalties. However, if you already missed the deadline, dont panic. You probably have options, with the details depending on your situation. Lets take a look at some of the most common scenarios.

• If you are owed a tax refund, there generally isnt any penalty for filing late. Still, you should file right away to come into compliance with the IRS.
• If you owe taxes, then the IRS may charge additional interest or even impose failure to file and/or failure to pay penalties. The good news is that as an expat, you may qualify to file using the IRS Streamlined Filing Compliance Procedures. If you do, the IRS will likely waive any penalties you might otherwise be subject to.
• If you cant afford to pay the taxes you owe, you should still file as soon as possible. The IRS may agree to let you reduce your tax debt or pay over time through regular installments. Regardless, its always better to file.

Mortgage Loan Interest Deduction

As weâve mentioned, property owners can deduct the value of their mortgageâs interest when filing tax returns. The amount of loan payments made annually is deducted from the amount of annual rental property income to arrive at the investorâs taxable income.

When combined with other real estate tax deductions, mortgage loan interest can help minimize the taxation of cash distribution for investors. Real estate owners benefit largely from this because it increases their average returns while minimizing the tax burden.

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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 .

No Matter How You File Block Has Your Back

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What Is Different This Year

The IRS has warned there will be several changes for returns in the 2022 tax season.

Specifically, some rules have changed for reporting income on the 1099-K form.

Previously, the form was issued if the total number of transactions was more than 200 in the previous year and they totaled more than $20,000.

However, in the 2023 tax season, Americans can be required to issue a form even just for a single transaction exceeding $600.

This means more taxpayers should be receiving this form in the coming weeks.

Additionally, several tax credits are lowering back to 2019 levels that were increased due to the coronavirus pandemic.

Those eligible for the Child Tax Credit are now set to receive $2,000 down from $3,600.

The Earned Income Tax Credit for individuals will fall to around $500 down from $1,500.

And those receiving the Child and Dependent Care Credit can receive up to a maximum of $2,100 down from $8,000.

Taxpayers are also limited in charitable deductions on this next years returns and can no longer take an above-the-line deduction for charitable donations.

Meanwhile, some taxpayers will also be eligible for additional tax credits including the premium tax credit and the clean vehicle credit.

Child Tax Credit Payments: Do I Need Irs Letter 6419 To File Taxes

Some families may want to hold off a bit when it comes to filing a return until they spot the IRS letter 6419, which can help them file an accurate return and avoid delays. Others who don’t want to wait may need to review their own records and check their specific information at the “Child Tax Credit Update Portal Site” at IRS.gov/ctcportal.

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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 .

Key Items To Know Before Filing 2021 Tax Returns

Before filing a tax return, taxpayers should know about three key items:

Changes to the charitable contribution deduction. Taxpayers who dont itemize deductions may qualify to take a deduction of up to $600 for married taxpayers filing joint returns and up to $300 for all other filers for cash contributions made in 2021 to qualifying organizations.

Check on advance child tax credit payments. Families who received advance payments will need to compare the advance child tax credit payments they received in 2021 with the amount of the child tax credit that they can properly claim on their 2021 tax return.

• Taxpayers who received less than the amount for which theyre eligible will claim a credit for the remaining amount of child tax credit on their 2021 tax return.
• Eligible families who did not get monthly advance payments in 2021 can still get a lump-sum payment by claiming the child tax credit when they file a 2021 federal income tax return next year. This includes families who dont normally need to file a return.

In January 2022, the IRS began sending Letter 6419 with the total amount of advance child tax credit payments taxpayers received in 2021. People should keep this and other IRS letters about advance child tax credit payments with their tax records. Individuals can also create or log in to IRS.gov Online Account to securely access their child tax credit payment amounts.

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Do I Have To Pay A Penalty For Filing Taxes After The Deadline

Yes, youll be charged a late filing penalty of 5% on the amount owing, an additional 1% for each month after the due date, plus 5% interest on the overdue taxes.

If you have failed to pay taxes on time in 2018, 2019, or 2020, youll have to pay a late-filing penalty of 10%, an additional 2% for each month that passes after the due date and 5% compounded daily interest on taxes overdue.

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What To Expect From H& r Block

This year you do not need to wait for your W-2 to come in the mail. H & R Block has an Early Access program, with more than seventy million W-2s available online. You can visit the site and even send your W-2 to your local H& R Block tax office free electronically.

With H & R Blocks tax refund calculator, you can estimate your tax liability amount either online or on your smartphone. In addition, you can find out how much you will receive or how much you will owe, and they even tell you the documents you need to complete your tax return.

The fastest way to get your refund is to file electronically and receive the money via direct deposit. However, H & R Block understands that not all taxpayers have bank accounts, so they make it so they can receive their refund on the Emerald Prepaid MasterCard. This card allows customers to control and manage their finances with the least amount of fees compared to competing prepaid cards.

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Irs Announces 2022 Tax Filing Start Date

Tax season 2022 opens on Monday, January 24.

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The Internal Revenue Service announced today that the 2022 tax filing season will open on Monday, January 24th, 2022. Thats when the IRS will start accepting federal income tax returns for the 2021 tax year whether you file electronically or on paper. Its the third coronavirus pandemic tax filing season, and again, thats expected to cause complexities in filing.

“The pandemic continues to create challenges, but the IRS reminds people there are important steps they can take to help ensure their tax return and refund dont face processing delays. Filing electronically with direct deposit and avoiding a paper tax return is more important than ever this year, said IRS Commissioner Chuck Rettig. And we urge extra attention to those who received an Economic Impact Payment or an advance Child Tax Credit last year. People should make sure they report the correct amount on their tax return to avoid delays.

For most taxpayers, the due date to file and pay is Monday, April 18th, 2022, not the typical 15th because thats Emancipation Day. Taxpayers in Maine or Massachusetts have until April 19th, 2022, to file their returns due to the Patriots Day holiday in those states. Victims of tornados in Illinois, Tennessee and Kentucky, and victims of wildfires in Colorado will have until May 16th to file and pay. Taxpayers requesting an extension will have until Monday, Oct. 17, 2022, to file.

Further Reading:

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.

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Prepare For The Next Tax Season

Once youâve had a smooth tax season in 2022, remember itâs not game over yet. Talk to your accountant and ask them about how you can prepare for the next tax season and take advantage of tax deductions. Make a strategic plan for the next year and follow it through.

Learn More: Learn How to Do Taxes on an Investment Property

What If I Owe More Than I Can Pay

Don’t put off filing just because you can’t afford to pay the amount due on the day you need to file your tax return. The IRS starts charging penalties and interest on the day the return is due, no matter when you file. You can minimize failure-to-file penalties by filing as soon as possible, paying as much as you can when you file, and setting up an installment plan for the balance.

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Tax Deductions And Credits To Consider For Tax Season 2022 And 2023

The closest things to magic words when it comes to taxes are deductions and . Both help you keep more money in your pocket instead of Uncle Sams, but in slightly different ways.

Tax deductionshelp lower the amount of your income that can actually be taxed. Some deductions are only available if you itemize your deductions, while others are still available even if you decide to take the standard deduction.

Tax , on the other hand,are dollar amounts actually subtracted from your tax bill, and there are two types: refundable and nonrefundable. If a credit is greater than the amount you owe and its a refundable credit, the difference is paid to you as a refund. Score! If its a nonrefundable credit, your tax bill will be reduced to zero, but you wont get a refund. Still a win!

Here are some deductions and credits you might be able to claim on your 2021 or 2022 tax return:

Keep Your Cra Information Up

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H& r Block Federal Free Edition

The cheapest filing option is the free option. It lets you file your federal tax return and all state returns for free. This choice works best for basic returns. The primary tax forms it supports are the 1040, Schedule EIC for the earned income tax credit, and Schedule 8812 for the Additional Child Tax Credit.

You can also use this form with some other common tax forms: Form 1099 , 1098 , and 1095 . However, filing other forms will require you to upgrade to a paid plan.