Filing Due Dates For The 2021 Tax Return
For most people, the 2021 return has to be filed on or before April 30, 2022, and payment is due .
File your return early or before the due date to avoid being charged interest and penalties and to prevent a disruption to your benefit and credit payments, such as:
- GST/HST credit, including any related provincial or territorial credits
- Canada child benefit , including related provincial or territorial payments
- Old age security benefits
Budgeting Or Paying In Instalments
If you want to make regular payments in advance you can set up a budget payment plan to put aside money to cover your next Self Assessment tax bill. You must be up to date with your previous Self Assessment payments and you can decide how much to pay each week or month.
A budget payment plan is different from payments on account, which you normally make once every six months towards your next tax bill. Set up your plan using your online Government Gateway account. Go to the Direct Debit section and choose the budget payment option when filling in the Direct Debit form. If the amount in your budget payment plan does not cover your next bill in full, you will need to pay the difference by the payment deadlines.
Find out more about paying in instalments.
When Tax Filing And Processing Begins
As soon as you have all the necessary paperwork to begin the process, you can start filing your taxes. The IRS typically starts accepting and processing tax returns during the last week of January. In 2021, however, that date was set to Feb. 15 so that the IRS had time to account for tax-related changes cause by the global pandemic.
Most tax professionals and tax software programs, including those with the IRS Free File program, will prepare your tax return immediately if you have all your income documents in order.
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Understand How Your Taxes Are Determined
The government decides how much tax you owe by dividing your taxable income into chunks also known as tax brackets and each chunk gets taxed at the corresponding tax rate. The beauty of this is that no matter which bracket youre in, you wont pay that tax rate on your entire income.
The progressive tax system in the United States means that people with higher taxable incomes are subject to higher federal income tax rates, and people with lower taxable incomes are subject to lower federal income tax rates.
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Avoid A Late Filing Penalty
Since the tax payment deadline is the same for all individual taxpayers, the CRA will charge late-filing penalties and interest if tax returns are not in by April 30, 2021. Self-employed individuals must also pay their taxes by the deadline as the CRA will apply interest to the balance as of April 30, even if the tax filing deadline is until June 15.
A late-filing penalty is a needless expense. If you owe $5,000 in income tax and you file four months late, the penalty is 9% or $450. The CRA adds the 1% per month penalty to the compound daily interest that begins accruing on the balance on its due date. If you dont have funds to pay your tax bill, one tip is to file your tax return on time still. You avoid the late filing penalty, and the CRA will only charge interest as your taxes going forward.
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We Have Made It Easier For You
Taxpayers, your tax matters, we continue to make it easier for you to comply. Starting July, we will be assessing a significant number of taxpayers automatically. If you accept the outcome you do not have to file a tax return at all. This enables you to view, accept or edit your proposed assessment from the comfort of your home or place of work using eFiling or SARS MobiApp.
We auto-assess based on the data we receive from employers, financial institutions, medical schemes, retirement annuity fund administrators and other 3rd party data providers. If you have not yet received your IRP5/IT3s and other tax certificates like medical certificate, retirement annuity fund certificate and other 3rd party data that are relevant in determining your tax obligations, you should immediately approach your employer or medical scheme or retirement annuity fund or other 3rd party data providers to make sure that they have complied with their submission requirements.
When Will I Get My Tax Refund
The IRS says 90% of people who e-file their tax return should get their federal refund within 21 days. In general, the IRS ensures 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.
To find out when your refund is coming, 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.
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When Does Netfile Open For 2021
NETFILE opens on Monday, February 22, 2021, for filing personal tax returns for the 2020 tax year. To file online, you must use CRA-certified tax-filing software products that use the NETFILE web service. You can also file previous tax years back to 2015, but returns for tax years earlier than 2014 must be done on paper.
How Early Can You File Your Taxes To Get Your Tax Refund
We all know that 2020 has been a year of unprecedented loss and financial strain for millions of Americans, but right now we can only hope that some relief is on the way. Maybe Congress will finally decide on another coronavirus stimulus bill, or perhaps a COVID-19 vaccine will quickly help us turn the corner and get back to normal. And maybe just maybe 2021 will start off on a much brighter note.
In the meantime, I know a lot of Americans are eager to file their tax returns as quickly as possible to get their tax refunds. With record unemployment and many assistance programs ending, any extra income is a huge benefit.
After all, the average tax refund for the 2019 fiscal year worked out to $2,711. If youre like many Americans, this amount represents the single largest dollar figure youll receive at once within a calendar year.
Even in a normal economic environment, early tax filers usually try to file their taxes once they get their final pay stub of the year. However, Americans cannot legally file their tax returns for the prior year until January 1st, meaning you cannot file your taxes for 2020 until January 1, 2021.
Even tax software that offers the option to file early really just holds your returns, and transmits it to the IRS when they are able to .
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Salt Tax Deduction Limit
The tax reforms launched in 2018 also limit your total state and local tax deduction to $10,000. This cap may be another incentive to take the standard deduction if your SALT deduction is higher than the new limit and you dont have a whole lot of other deductions.
Getting a head start on your taxes will help you avoid an unpleasant surprise error when it comes to this important part of your tax return.
When Are Taxes Due
2021 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 2021 tax year, taxes youll file in 2022? If you’re wondering, “When are taxes due, anyway?” here are the important dates at a glance.
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When Will Tax Refunds Arrive
If you have a federal tax refund coming, you could get your money back in as little as three weeks. In the past, the IRS has issued over 90% of refunds in less than 21 days. If you want to speed up the refund process, e-file your 2021 tax return and select the direct deposit payment method. That’s the fastest way. Paper returns and checks slow things down considerable.
However, don’t expect your refund before mid-February if you claim the earned income tax credit or the additional child tax credit. By law, refunds for returns claiming these credits must be delayed. This applies to the entire refund, not just the portion associated with the credits.
When Is The Earliest I Can File
Because so many of our clients are excited to get their refunds, we get asked all the time, When is the earliest I can file my federal tax return?
You cannot technically file your federal taxes until the IRS starts accepting returns. However, you can begin to prepare your return with a pay stub, and complete it when you have your W-2 form or other necessary tax documents. Tax-preparation services can also help with this.
You can prepare and submit your return as soon as you receive your W-2s from your employers and have all the relevant information and documents. Most W-2s arrive in mid-January, but employers have until January 31, 2020 to send W-2s and Forms 1099, so you could receive yours as late as early February.
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How Early Can You File Taxes In 2021
The Internal Revenue Service has not yet announced the 2022 tax filing season start date. Last year it was February 12, 2021. Thats the day when the IRS started accepting and processing tax returns.
Even before tax season opens, people can begin filing their taxes early with online tax software companies, including TurboTax online. TurboTax Online will start accepting tax returns in early December, and 2021 tax returns will be automatically transmitted to the IRS the day tax season opens in 2022.
Do I Have To File Taxes To Get My Stimulus Check
Yes, if you’re missing part or all of the first or second stimulus payment you qualify for, you’ll be able to claim it as a tax credit on your tax return.
If you owe taxes, the credit will reduce your bill and any remaining cash will come back to you as a refund. If you’re getting a refund already, the unpaid stimulus will be added to it. You don’t have to pay taxes on the stimulus amount itself.
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Collect Your Income Documents
Your employer has until Jan. 31, 2022, to send you your W-2 form reporting your 2021 earnings. Most 1099 forms must be sent to independent contractors by this date as well.
Reach out to your employer and request a copy or a duplicate copy if you haven’t received your W-2 form. Your W-2 may also have been posted online, if you and your employer agreed to that method. As a last resort, you can call the IRS for assistance at 800-829-1040.
You can file IRS Form 4852, a W-2 substitute, if the tax-filing deadline is looming and you still don’t have your W-2, but this can be a bit of a headache. You’ll have to accurately calculate your earnings and withholding amount based on your final pay stub for the year, so you might want to reach out to a tax professional if you find yourself in this situation.
Does My Stimulus Payment Count As Income
The IRS stated in May 2020 that the economic impact payments provided to Americans under the Coronavirus Aid, Relief, and Economic Security Act and further legislation are not taxable income. There were two stimulus payments administered in 2020, and one in 2021.
You dont have to give any portion of that money back to Uncle Sam, and it wont reduce your refund if you have one coming to you. Stimulus payments aren’t considered income for other purposes, either, such as eligibility for government benefits or assistance.
Many state governments, including New Jersey and Massachusetts, have indicated that theyre not taxing these stimulus payments, either. You most likely wont have to report the payment you received on your state tax return, but check your states website or confer with a local tax professional to be sure.
There was a third stimulus payment sent out to eligible recipients starting on March 12, 2021. This amount will not be taxes. However, those who did not qualify or did not receive the full amount, may be eligible for the Recovery Rebate Credit based on their 2021 tax situation. If you’re eligible for a credit and don’t owe taxes this year, your credit will provide a tax refund.
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Prepare For Higher Filing Costs
Before the April 18 deadline for filing 2021 tax returns, there were a number of offers for cash back rewards and savings on tax prep software, some of which may still be available for those who filed for an extension. Keep in mind that some of these deals may be targeted, and only available for a limited time.
If youre planning to work with an expert to file you return, expect some tax preparers to charge more this year to account for tax law changes and more complex returns, Michele Cagan, CPA, founder of Single Mom CPA and author of Debt 101, previously told NextAdvisor.
And the longer you wait, the more likely youll have to pay a premium closer to the deadline, says Cordasco.
The best thing you can do to prepare is organize your documents ahead of time, and start as soon as you can. You may be able to file your taxes online for a lower price if your return is straightforward. But if you think youll need a professional, its best to get help ASAP to avoid paying more closer to the deadline.
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.
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Don’t Be Surprised By Delays
While every tax season is busy for the IRS, pandemic-induced backlogs from the past two years coupled with limited funding will make the current tax season even more so.
Treasury officials said in a briefing call Monday that at the start of a normal tax season, the IRS might have 1 million returns backlogged, but the number this year is “several times more.”
Last week, IRS Commissioner Charles Rettig noted that return processing and tax assistance delays arose as the agency was administering several COVID-19 relief efforts passed by Congress. Those included issuing three rounds of Economic Impact Payments, creating a system to send out advance monthly payments of the Child Tax Credit and making changes to the Earned Income Tax Credit.
“Despite valiant efforts by our employees handling a large portfolio and new responsibilities, we still are working through tax returns filed in 2021 and we are unable to answer an unprecedented number of telephone calls. Simply put, in many areas we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs,” Rettig said.
One example: Last year, the agency was unable to answer more than two-thirds of the calls it received. That’s why tax filers are encouraged to first use the online tools provided on IRS.gov to get answers to their questions before reaching out to the agency directly.
When Do I Get My Tax Refund
The answer to when will I get my tax refund depends from year to year.
Generally, the IRS has said that about 90% of refunds are issued within 21 days of when the return was received.
You can check on the status of your refund on the IRS website or at our Wheres My Refund page. Live updates will appear the same day e-file opens. Using this tool, you can easily track the progress of your return as it is processed.
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When Can I File My Taxes
Each year, the IRS issues a statement in early January with the first day to file taxes.
Typically, the official date when you can file taxes falls in mid to late January.
The IRS announced it will start processing tax returns Feb. 12. Worried about waiting weeks for your refund? We can do your taxes now and when you file at Block, you could get a Refund Advance up to $3,500 today. No waiting on the IRS. No loan fees and 0% interest.
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.
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