Tax Day For Individuals Extended To May 1: Treasury Irs Extend Filing And Payment Deadline
IR-2021-59, March 17, 2021
WASHINGTON The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. The IRS will be providing formal guidance in the coming days.
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig. “Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”
Individual taxpayers can also postpone federal income tax payments for the 2020 tax year due on April 15, 2021, to May 17, 2021, without penalties and interest, regardless of the amount owed. This postponement applies to individual taxpayers, including individuals who pay self-employment tax. Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021. Individual taxpayers will automatically avoid interest and penalties on the taxes paid by May 17.
Tax Day 202: When Was The Last Day To File Your Taxes
Federal income tax returns were due April 18 for most of us. But some people have some extra time to file are you one of them?
Most Americans had to file their federal tax return for the 2021 tax year by April 18, 2022. Note that we said “most Americans.” Taxpayers in two states had until April 19 to submit their 1040s to the IRS. Victims of certain natural disaster also get more time to file, with varying dates depending on when the disaster hit.
If for some reason you weren’t able to file your federal tax return on time, hopefully you requested an automatic six-month tax extension to October 17, 2022, by filing Form 4868 or making an electronic tax payment. To get the extension, you had to act by the original due date for your return, whether that was April 18, April 19, or some other date. Keep in mind, however, that an extension to file doesn’t extend the time to pay your tax. If you didn’t pay up by your original due date, you’ll owe interest on the unpaid tax and could be hit with additional penalties for filing and paying late.
Also note that special tax extension rules apply for Americans living abroad and people serving in a combat zone or contingency operation. As a result, they might have more time beyond April 18 to file their 2021 tax return and pay whatever tax they are expected to owe, and they could receive an extension past October 17.
Highlights Of Changes In Revenue Procedure 2020
The Consolidated Appropriation Act for 2020 increased the amount of the minimum addition tax for failure to file a tax return within 60 days of the due date. Beginning with returns due after Dec. 31, 2019, the new additional tax is $435 or 100 percent of the amount of tax due, whichever is less, an increase from $330. The $435 additional tax will be adjusted for inflation.
The tax year 2021 adjustments described below generally apply to tax returns filed in 2022.
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Federal Income Tax Deadline In 2022
Circle April 18, 2022, on your calendar because thats the one general date by which most filers need to get returns into the IRS. While taxes are typically due on April 15, this years Tax Day falls on Emancipation Day, a legal holiday observed in Washington, D.C. As a result, most filers will have until the next business day, April 18, to submit their tax returns.
However, you may have a different deadline if you filed for an extension or if you are a corporation. Heres a rundown of all the deadlines you need to keep track of.
Given fluid tax filing rules its important to ensure your investments are protected. A financial advisor can help you make sure your tax filings dont unnecessarily hurt your assets.
Us Tax Filing Deadlines And Important Dates In 2022
Are you a citizen of the United States or a Green Card Holder residing in Canada? Do you have an interest in the U.S. or foreign business entity? Are you a Canadian individual or a business owner with U.S. interests? Or maybe you are in charge of your business tax compliance? You should be aware of the important dates and deadlines of your income tax filing requirements.We designed this page to assist you or your qualified cross-border and U.S. tax advisor in determining U.S. tax filing deadlines that may apply to your case. For example, if you are a U.S. expat and live in Canada, your general deadline for filing a U.S. income tax return with the Internal Revenue Service is April 15 . However, an automatic extension to June 15 is granted to those U.S. citizens or residents whose tax home and abode, in real and substantial sense, is outside the United States and Puerto Rico. Further extensions may be requested by taking affirmative action and filing Form 4868 ), sending a letter with a relevant explanation to the IRS , and filing Form 2350 requirements extends the filing deadline to meet the FEIC requirements).
The extension of time to file ones tax return DOES NOT extend the time for making the tax payment. To avoid potential penalties and/or interest for late tax payment, please ensure that you either pay tax with a timely filed tax return or along with filing an extension to file the respective tax return.
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Dont Miss The Tax Filing Deadline
When you work in the US, youll be taxed on your income and if you earn over a certain amount, you must file a tax return. In 2021 for example, if you are under 65 and single, you must file a tax return if you earn $10,350 or more. The deadline for filing your 2021 tax return is April 15, 2022. You must prepare it and post it to the IRS.
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 state’s 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 can’t pay your tax bill when it’s 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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How The Social Security Tax Works
According to the Social Security Administration , an average of 66 million people per month received Social Security benefits on average of $1,681 per month in 2022. Benefit recipients will begin receiving a slightly larger amount of $1,827 due to the cost-of-living adjustment. These payments are funded by the Social Security tax, which is also known as the Old Age, Survivors, and Disability Insurance .
The tax has two parts:
- The first is the payroll tax mandated by the Federal Insurance Contributions Act and the self-employment tax mandated by the Self-Employment Contributions Act
- Medicare tax, or hospital insurance tax, makes up the second part
Payroll taxes are based on an employees gross wages, salaries, and tips. These taxes are typically withheld by an employer and forwarded to the government on the employees behalf. In 2023, the Social Security tax rate is 6.2% for the employer and 6.2% for the employee.
Medicare taxes are split between the employer and the employee, with a total tax rate of 2.9% for the 2022 and 2023 tax years.
Irs Provides Tax Inflation Adjustments For Tax Year 2021
IR-2020-245, October 26, 2020
WASHINGTON The Internal Revenue Service today announced the tax year 2021 annual inflation adjustments for more than 60 tax provisions, including the tax rate schedules and other tax changes. Revenue Procedure 2020-45PDF provides details about these annual adjustments.
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When Are 2023 Tax Extensions Due
You have right up until tax day to file for an extension. For individuals, that means you can still file for a tax extension right on April 18, 2023. The same goes for businesses: S corps and partnerships can still get an extension on March 15, and the last day for C corps to file for an extension is April 18.
When Are Taxes Due If I File An Extension
If you file Form 4868 and receive the automatic six-month extension, you will have until Oct. 17, 2022, to submit your 2021 tax return.
If you already know that youll need an extension, plan on filing Form 4868 sooner rather than later. That way, if anything goes wrong with your application, youll have plenty of time to fix any errors and resubmit it ahead of the April 18 tax deadline. This also ensures you have time to get your documents together for your extended deadline in October. The IRS website has all the forms, deadlines and information youll need.
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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 .
Backdoor Roth Ira Conversion
With this tax strategy potentially on the chopping block, some tax experts advise that making a conversion before the end of 2021 could be a good strategy.
A Roth IRA allows people to put after-tax dollars into one of the accounts, and then to withdraw the funds tax-free when they retire. While the Roth IRA is useful for people who expect to be in a higher tax bracket as they get older, it has income limits that preclude upper-income households from using the strategy.
Except there is a loophole the “backdoor” conversion.
In this case, people with traditional IRAs who earn above the income cutoffs for Roth IRAs about $200,000 for married couples can convert some of those traditional IRA funds into a Roth IRA, even if they earn above the income threshold for contributing to a Roth account.
But lawmakers have put the strategy in their crosshairs given that upper-income households are tapping this middle-class strategy and are proposing to eliminate it after 2021.
“I think people are getting the impression that the life of the backdoor IRA may be coming to an end at some point in the future,” Bronnenkant said. “Taking advantage of that for one last time in 2021 may be your last year to do so.”
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Tax Rates And The Standard Rate Cut
Tax is charged as a percentage of your income. The percentage that you paydepends on the amount of your income. The first part of your income, up to acertain amount, is taxed at 20%. This is known as the standard rate oftax and the amount that it applies to is known as the standard ratetax band.
The remainder of your income is taxed at the higher rate of tax,40%.
The amount that you can earn before you start to pay the higher rate of taxis known as your standard rate cut-off point. You can see examplesof how to calculate income tax using these tax rates and the standard ratecut-off point.
Standard rate cut-off points
Example of standard rate cut-off point for a married couple or civilpartners with two incomes
In 2022, the standard rate cut-off point for a married couple or civilpartners is 45,800. If both are working, this amount is increased by thelower of the following:
- The amount of the income of the spouse or civil partner with the smaller income
If one person is earning 48,000 and their spouse or civil partner isearning 29,000:
Deadline For Business Taxes
If you are a business, the due date for your tax forms will depend on what kind of business you are. The deadline for most corporations and any other business individuals who file Form 1040 is the same as the standard tax deadline, April 18, 2022, unless you file for an extension.
However, the deadline for S-corporations and partnerships to submit their tax forms is March 15, 2022. If you file for an extension, you will have an additional six months to submit your tax return.
Corporations with a fiscal year ending on June 30 may have a different income tax deadline. In this case, its best to speak with a tax professional to ensure you file by the correct deadline.
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Can Etax Help Me If I Get An Ato Fine
If you receive a fine for missing the 2021 tax deadline, our team of tax experts can contact the ATO on your behalf to try to get your penalties cancelled or reduced. But theres no guarantee they will.
The ATO may waive or reduce your fine but only if:
- All of your tax returns up to date
- You have no other debts with the ATO
If you do have any outstanding tax returns, it is highly unlikely the ATO will be lenient and waive your fine.
If we cannot help you waive the fine, we can request a payment plan for you to make the amount owing easier to manage.
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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Tips For Tax Planning
- If you are looking to make charitable contributions, transfer some of your wealth or leave your estate to your heirs in the most tax-advantageous way, a financial advisor can help. Finding a qualified financial advisor doesnt have to be hard. SmartAssets free toolmatches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If youre ready to find an advisor who can help you achieve your financial goals, get started now.
- Its important to plan ahead for your income taxes so youll know what to expect. Learn more by using SmartAssets income tax calculator.
Tax Year 2021 Calendar: Important Federal Dates And Deadlines
- The Intuit Electronic Filing Center begins accepting and holding/processing 2021 tax returns that are final and able to be e-filed
- The IRS starts processing returns on January 24, 2022
- Due date for fourth installment of 2021 estimated tax payments
- Deadline for filing an S corporation or Partnership return or extension
- Deadline for filing a 2021 personal return or extension
- The return or extension must be postmarked or transmitted for e-filing by Monday, April 18
- If you owe: To avoid late payment penalties and interest, any taxes you owe must be paid by this date, even if you filed an extension
- If you’re expecting a refund: If you missed the April 18 filing deadline, you have three years from the April 18, 2022 due date to file and still receive your refund. After that date, unclaimed 2021 refunds become the property of the Department of the Treasury
- Deadline for filing a 2021 personal return for U.S. citizens or residents living and working abroad, including military duty
- Due date for second installment of 2022 estimated tax payments
- Final deadline to file your 2021 S corporation or partnership tax return if you filed an extension
- Due date for third installment of 2022 estimated tax payments
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