Dealing With Economic Uncertainty
- The coronavirus pandemic has pushed millions into unemployment and the economy into a recession. Financial advisors can help navigate these troubled times. To simplify the search, use SmartAssets free tool. It will match you with financial advisors in your area in just 5 minutes. If youre ready to find an advisor, get started now.
- There are certain personal finance fundamentals that you need to get in order, ideally before a recession hits. Heres how to prepare for a recession.
- Extending the tax deadline isnt the only thing the government is doing to take the economic pressure off Americans. Learn what relief is available to you.
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May 2022 Tax Due Dates
|Tips for April 2022 Reported to Employer|
|May 16||Arkansas, Illinois, Kentucky and Tennessee Storm, Tornado and Flooding Victims’ Extended Deadline for Filing and Payment Obligations from January 1 to May 15|
|May 16||Colorado Wildfire Victims’ Extended Deadline for Filing and Payment Obligations from January 1 to May 15|
After a busy April, things slow down considerable in May for most people. There’s the typical deadline for employees to report tips received in April to their boss. That’s due by May 10.
In addition, victims of certain natural disasters also have extended due dates on May 16. First, victims of the severe storms, tornadoes and flooding in Arkansas, Illinois, Kentucky and Tennessee that began on December 10, 2021, can wait until May 16 to file federal returns or pay federal taxes that were supposed to be due between December 10 and May 15. People impacted by the Colorado wildfires that started on December 30, 2021, also have until May 16 to file returns and pay taxes originally due from December 30 to May 15.
Reporting Due Dates For Taxes Fees And Reports
Due dates on this chart are adjusted for Saturdays, Sundays, and 2022 federal legal holidays. For applicable taxes, quarterly reports are due in April, July, October and January.
Note: When a reporting due date happens to fall on Saturday, Sunday, or a legal holiday, the reporting due date becomes the next business day. For example, for reports normally due on the 25th of the month, the due date is Dec. 26 instead of Dec. 25, which is Christmas Day . If Dec. 26 is a weekend day , then the reporting date becomes the next business day.
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Extended Due Date Of First Estimated Tax Payment
Pursuant to Notice 2020-18PDF, the due date for your first estimated tax payment was automatically postponed from April 15, 2020, to July 15, 2020. Likewise, pursuant to Notice 2020-23, the due date for your second estimated tax payment was automatically postponed from June 15, 2020, to July 15, 2020. Please refer to Publication 505, Tax Withholding and Estimated TaxPDF, for additional information.
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Time To Make Contributions To Iras And Health Savings Accounts Extended To May 17
In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements , health savings accounts , Archer Medical Savings Accounts , and Coverdell education savings accounts . This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
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What Is The Last Day To Contribute To My Retirement Account For 2019
As with other elements of the extension, individuals can wait to make 2019 contributions to their retirement accounts normally due April 15, 2020 until July 15, 2020. Consider using this extra time to set aside more money in your retirement accounts if youre able. You can contribute a maximum of $6,000 to an IRA for 2019, plus an extra $1,000 if youre 50 or older.
You dont need to wait to file your tax return to make this contribution, however. If you know how much youll contribute by the tax deadline, you can put this on your tax return and make the actual contribution by the new deadline.
Here Are A Few Resources On Irsgov To Help Last
- IRS Free File Available through October 17, IRS e-file is easy, safe and the most accurate way to file taxes. There are eight Free File products available in English and two in Spanish. Filing electronically can also help taxpayers determine their earned income tax credit, child and dependent care credit, and recovery rebate credit.
- Online Payments Taxpayers can pay online using IRS Direct Pay at no cost or use a debit card, credit card or Digital Wallet, which may be subject to a payment processing fee.
If theyre filing through tax software or a tax preparer, taxpayers can schedule a payment when filing.
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‘the Indirect Effect’ Of Reducing Government Revenue
The origins of the bonus depreciation tax cut began with a decade-old federal income tax law known as accelerated depreciation, which allows businesses to file for subsidized taxes for equipment not used as often and nearing old age.
Then-President Trump took it a step further with the Tax Cuts and Jobs Act , creating the “bonus depreciation” law.
From 2018 to 2021, the bonus depreciation law gave corporations additional tax breaks with the existing accelerated depreciation law. Companies could receive a full tax deduction the same year they purchased equipment or assets instead of making smaller deductions over a longer period of time as the equipment wore out.
According to public accountants at Blue & Co., there are pros and cons to utilizing 100% depreciation. On the plus side, it reduces overall tax liabilities. On the negative side, however, it can prevent future deductions, especially in a financial year with low revenue.
The Trump administration argued that “bonus depreciation” would increase investment, but according to the Center for American Progress, business investments slowed down dramatically by mid-2019 before plunging in 2020.
“These tax breaks have no direct effect on the common population, but they have the indirect effect of reducing the revenue that the government has to invest in anything else like highways, education, defense, that might benefit Americans,” Steve Wamhoff director of federal tax policy, told Yahoo Finance.
Alignment With State And District Of Columbia Holidays And Changes In Date
Tax Day occasionally falls on Patriots’ Day, a civic holiday in the Commonwealth of Massachusetts and state of Maine, or the preceding weekend. When this occurred for some time, the federal tax deadline was extended by a day for the residents of Maine, , Massachusetts, New Hampshire, New York, Vermont, and the District of Columbia, because the IRS processing center for these areas was located in Andover, Massachusetts and the unionized IRS employees got the day off. In 2011 and 2015, Tax Day fell on Patriots’ Day. However, federal filings were directed to Hartford, Connecticut, Charlotte, North Carolina and Kansas City, Missouri, and there was no further extension for Maine, Massachusetts or other surrounding states’ residents. In 2019 and 2021, when Patriots Day was again observed on the tax filing deadline, residents of Maine and Massachusetts were given extra time to file as post offices in those states would be closed on normal deadline.
Emancipation Day is celebrated in Washington, D.C. on the weekday nearest April 16, and under a federal statute enacted decades ago, holidays observed in the District of Columbia have an impact nationwide. If April 15 falls on a Friday, then Emancipation Day is celebrated on the same day and tax returns are instead due the following Monday, April 18. When April 15 falls on a Saturday or Sunday then Emancipation Day is celebrated on the following Monday and tax returns are instead due on Tuesday.
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Max Out Your 401 By Dec 31
Contributions to a traditional 401 reduce your total taxable income for the year.
For example, lets say you make $65,000 a year and put $19,500 into your 401. Instead of paying income taxes on the entire $65,000 you earned, youll only owe taxes on $45,500 of your salary. In other words, saving for the future lets you shield $19,500 from taxes . Many employers offer to match a portion of what you save, meaning that if you contribute enough to your account, you’ll also nab some free money.
Tax Deadline For Quarterly Estimated Payments
If youre self-employed, an independent contractor or have investment earnings, you might be curious about another set of deadlines: quarterly estimated payments. The IRS requires these quarterly estimated tax payments from many people whose income isnt subject to payroll withholding tax.
For estimated taxes, the answer to When are taxes due? varies. The year is divided into four payment periods, and each period has its own payment due date. Check below to see the dates for 2022.
If you earned income during this period
Estimated tax payment deadline
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Tax Due Dates For Partnerships
After a tumultuous year for small business owners, taxes might be the last thing on your mind when youre thinking about your LLC. This article will walk you through the 2021 tax due dates for multi-member LLCs that you will need to keep an eye out for this year.
Many small businesses are organized as LLCs. If your LLC has multiple members, or it is organized as another type of partnership for state law purposes, it may need to file a form 1065 partnership return. After a tumultuous year for small business owners, taxes might be the last thing on your mind when youre thinking about your LLC or partnership. This article will walk you through the tax year 2021 due dates for partnerships that you need to keep an eye out for this year.
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Update: Notice On The Status Of The City Of Detroit Individual Income Tax Due Date Extended To May 17
Date: April 26, 2021
The Department issued Notice on the Status of the City of Detroit Individual Income Tax Return Deadline on March 25, 2021. At the time that the Notice was issued, the Internal Revenue Service had extended the filing deadline for individual 2020 returns from April 15, 2021 to May 17, 2021. The Departments Notice advised City of Detroit individual taxpayers that there was no statutory authority to similarly extend the deadline for City of Detroit 2020 income tax returns.
On April 22nd, 2021 PA 7 was enacted. The new law extends the filing deadline for individuals under the City Income Tax Act to match the federal filing deadline. Therefore, individuals who file a City of Detroit income tax return now have until May 17, 2021 to file without incurring penalty or interest.
Additional 2020 City of Detroit individual income tax filing information:
- Extensions beyond May 17, 2021. Individual taxpayers who need additional time to file beyond the May 17th deadline can request a filing extension until October 15th by filing a CITY Income Tax Return Application for Extension of Time to File by May 17th. An extension of time to file does not extend the time to pay tax. Tax is due by May 17, 2021.
- Estimated payments for 2021. This relief does not apply to 2021 estimated tax payments that are due on April 15, 2021. These payments are still due on April 15th.
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The Deadline To Apply For New Jerseys Anchor Property Tax Relief Is Quickly Approaching
New Jersey Statehouse in Trenton.
Officials in New Jersey are urging people to apply for property tax relief under the new ANCHOR program before the Jan. 31, 2023 deadline.
Qualified homeowners making less than $150,000 in 2021 will receive a tax credit of $1,500, while those making $150,000 to $250,000 will get a tax credit of $1,000. Renters who made $150,000 or less will receive a direct check for $450.
The program was a key component of this years state budget. Democrats claim it will make the state more affordable, despite Republicans asserting the program would not do enough.
The Legislature is a step closer to removing a requirement that lawmakers addresses be kept private, except for the town and county where they own land.
5 days ago
The Murphy Administration said Monday that roughly half of the states expected two million eligible residents have already applied. In the fall, state leaders extended the application deadline from October to January to include people enrolled in a Payment in Lieu of Taxes program.
Assemblyman Roy Freiman noted that, historically, raising public awareness about first-time programs like ANCHOR can be challenging.
Its brand new, its new in scope, I think it takes time to become aware of something that passes in the budget in the end of June, to rolling out with a deadline in October, Freiman said. We want to make sure we get the actual refund checks out as quickly as possible.
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When Are Estimated Taxes Due In 2022
Those who pay estimated taxes have a slightly different filing schedule than everyone else. People who pay quarterly estimated taxes include the self-employed, as well as those who work similar entrepreneurial or independent contractor jobs. If your paycheck doesnt have income taxes taken out before the money gets to you, then this requirement applies to you.
Estimated taxes are due quarterly and must be submitted with Form 1040-ES. Heres when those payments are due:
- First-quarter payments: April 18, 2022
- Second-quarter payments: June 15, 2022
- Third-quarter payments: Sept. 15, 2022
- Fourth-quarter payments: Jan. 17, 2023
Note: Like Tax Day, quarterly tax payments are due on April 18 this year. But because Jan. 15, 2023, is a Sunday, and Monday, Jan. 16 is Martin Luther King Jr. Day , the deadline to pay estimated taxes on the self-employment income you earn in the fourth quarter of 2022 has been pushed to Jan. 17, 2023.
This is the standard schedule to follow, provided nothing interferes.
If youre an employee who earns tips, youre required to report all your monthly tip earnings to your employer by the 10th of the following month. Your employer is responsible for sending those numbers to the IRS, as well as for adjusting how much money comes out of your paycheck to satisfy your tip withholding.
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Who Is Eligible For A Tax Rebate
To be eligible for a refund, the administration said individuals must have filed a 2021 state tax return on or before Oct. 17, 2022. An individuals credit may be reduced due to refund intercepts, including for unpaid taxes, unpaid child support and certain other debts.
Please note that:
- Both resident and non-resident filers are eligible
- Non-residents on whose behalf a partnership files on a composite basis are eligible
- Fiduciary filers are eligible
File For An Extension By Tax Day
Note: A tax extension gets you more time to file your return, not more time to pay your taxes. You still must pay any tax you owe, or a good estimate of that amount, by the tax deadline. Include that payment with your extension request or you could face a late-payment penalty on the taxes due.
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Can I File An Extension
As in past years, you can request an extension if you need more time to prepare and file your 2021 return. Before the April 18, 2022, deadline, you must fill out and submit Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. At the time you file Form 4868, you must also pay the estimated income tax you owe to avoid penalties and interest, the IRS says.
Generally, taxpayers are granted an automatic six-month extension to file, or two months if theyre out of the country, in which case the extension also applies to payment of taxes owed.
To qualify for an extension, you must file Form 4868 before April 18, 2022. You will not be notified unless your request is denied.
When Is Tax Day Its Complicated
The deadline for filing 2021 federal income tax returns for most taxpayers is April 18. Taxpayers havent had to file on the traditional date, April 15, since the 2019 filing season.
2022 IRS Key Tax Dates
IRS Free File service opens to prepare tax year 2021 returns
Final estimated tax payment for 2021 due
IRS begins processing 2021 tax returns
Free MilTax service for military opens to prepare 2021 returns
First estimated tax payment for tax year 2022 due
Filing deadline for tax year 2021
Second estimated tax payment for 2022 due
Third estimated tax payment for 2022 due
Extended deadline to file 2021 tax return
Fourth estimated tax payment for 2022 due
In 2020 and 2021, the April 15 deadline got pushed back by the COVID-19 pandemic. And in some non-pandemic years, the deadline sometimes gets pushed back to the next business day because April 15 falls on a weekend.
The filing deadline this year is Monday, April 18, because Washington, D.C., observes Emancipation Day on Friday, April 15. By law, the IRS is required to treat D.C. holidays as if they were national holidays for tax-filing purposes. Emancipation Day commemorates the day in 1862 when President Abraham Lincoln signed into law a measure to free enslaved people in D.C.
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