What Happens On Oct 15
In just a few weeks, the tax extension deadline will pass on Oct. 15. But what is the tax extension deadline, really?
The 2021 tax extension deadlineor in any yearis effectively your final deadline to file your taxes. Prior to Tax Day, which usually falls on April 15 but was delayed to May 17 this year, you have the option to file for an extension. When you file this form, the IRS will grant you an additional chunk of time to file your tax return. That date typically falls on Oct. 15, or six months after Tax Day.
Importantly, the tax extension doesnt apply to a few situations that often come hand-in-hand for taxpayers who have yet to file. Here are a few critical points the IRS mentions:
- An extension of time to file your return does not grant you any extension of time to pay your taxes.
- You should estimate and pay any owed taxes by your regular deadline to help avoid possible penalties.
- You must file your extension request no later than the regular due date of your return.
So, to sum up, tax extensions only apply to filing your taxes, not to paying them. And for the IRS to accept your extension request, youll need to file it prior to the original date of your return. In 2021, that refers to the May 17 tax deadline.
Is There Anything Extra I Need To Do If I Have Shared Custody Of My Child
For the first two stimulus checks, some parents who shared custody of a child but werent married to each other were entitled to each claim money for the same child. That was only if they alternated years for claiming the dependent in other words, if one parent claimed the child on their taxes in odd years and the other claimed the child on their taxes in even years.
This is no longer allowed for the third check, and were told it wont work that way for the child tax credit payments either. Heres what we know so far about child tax credit and shared custody situations.
If the child switches homes this year, the parents will need to agree on who will claim the child on their taxes this year. The parent that claims the child and receives the child tax credit payments will need to fill out Form 8332 and include it with the tax return. If you dont qualify or want to get the money in one lump sum, you can also opt out of early payments. Remember, if youre not eligible but receive the money, you may have to pay the IRS back during tax time.
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See if you qualify for a third stimulus check and how much you can expect
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Know what dependents credits and deductions
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Learn what education credits and deductions you qualify for and claim them on your tax returnGet started
The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
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Do I Have To File An Extension With My State
That depends. Once you’ve requested an extension from the feds, check if you’ll need to do so for your state. According to the IRS, “State filing and payment deadlines vary and are not always the same as the Federal filing and payment deadline.”
Some states will automatically give you an extension on your state taxes if you receive a federal extension. In other states, you’ll need to request an extension separately. The Federation of Tax Administrators offers a rundown of how to check for tax information for the state you live in.
If you live in one of the nine states without personal income tax, you’re likely in the clear. However, two of those states New Hampshire and Tennessee still tax investment income, so, if you have earnings from dividends, stock sales or other investments, you may still have to file a state tax return in those states.
The Irs Tax Deadline Extension For 2021
The IRS has provided a one month extension on federal tax filings for 2021 – we discuss how this impacts you as an Etsy seller.
The Treasury and the IRS have just announced that they are providing an extension to individual federal income tax payments for the 2020 tax year. Instead of the previously published filing date of April 15, 2021, you now have until May 17, 2021 to file.
This change is to factor in the exceptional economic circumstances caused by the pandemic and will be applied to most taxpayers.
For many Etsy sellers, this new tax filing date will most likely not have much of an impact on your cash flow or finances this year. Why? The IRS has specified that the extension will not apply to anyone that pays estimated taxes – this excludes more than 9 million individuals and businesses from this relief. If you are a sole proprietor or a partnership and are scheduled to pay 2021 estimated taxes, youâll still need to pay your federal tax estimate by the usual April date to avoid interest and penalties.
Another thing to keep in mind as an Etsy seller is your state tax obligations. Many sellers tend to file both federal and state at the same time as most states line up with the same dates. As this date has moved forward this year, youâll want to keep in mind that most states havenât made the same change, so ensure you have both dates marked on your calendar!
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Treasury And Irs Extend Filing And Payment Deadline To May 17
WASHINGTON The U.S. Department of the Treasury and the 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.
Additional details on the taxpayer relief announced today are available on IRS.gov.
What I Still Need To Pay The Irs
That’s right getting an extension to file your tax return doesn’t give you an extension on paying what you owe the government.
The IRS expects people to make an effort to pay what they owe, Betterment’s Bronnenkant said. That may be difficult for people who haven’t yet filled out their tax returns, but it’s best to make a good-faith estimate.
“If your prior year is a good barometer for your current year, start with that as a way to come up with some sort of reasonable estimate,” Bronnenkant said. “Don’t let perfect be the enemy of good enough.”
For instance, if you estimate that you owe $10,000 but end up actually owing $11,000, you’ll be charged an underpayment penalty. But it will be less painful to face an underpayment penalty for $1,000 rather than the entire $11,000 that you owe, Bronnenkant noted.
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You Did Owe The Irs For 2020 And You Havent Paid
Generally, the IRS requires you to estimate and pay your tax liability prior to granting you an extension on filing your tax return. But lets say you discovered you made a mistake when estimating your tax obligation and actually underpaid. In these situations, the IRS may have granted you a tax filing extension, but you still owe them money.
In this case, missing the 2021 tax extension deadline puts you into the worst scenario when it comes to dealing with the IRS. You become a non-filer with a balance. Your balance, though perhaps not yet assessed by the IRS, may end up retroactively assessed, at which point your failure to pay penalties and interest will be stacked upon by your new failure to file penalties.
This is one of the many unfortunate scenarios by which spiraling tax debt begins its downward turn.
Extensions Of Time To File Tax Returns Some Taxpayers Instantly Qualify
IR-2022-88, April 18, 2022
WASHINGTON Taxpayers requesting an extension will have until Monday, Oct. 17, 2022, to file a return. Not everyone has to ask for more time, however. Disaster victims, taxpayers serving in combat zones and those living abroad automatically have longer to file.
An extension of time to file will also automatically process when taxpayers pay all or part of their taxes electronically by this year’s original due date of April 18, 2022. Although taxpayers can file up to six months later when they have an extension, taxes are still owed by the original due date.
Here’s more about those who get automatic extensions:
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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.
» MORE: Estimate your tax bill with our free tax calculator
What If The Irs Owes Me A Refund
If it turns out the IRS owes you money, you’ll have to wait until after the IRS processes your tax return for the refund. So if you hold off until October 17 to file, you won’t get the refund until about three weeks after that date based on the IRS’ assessment that most taxpayers receive their refund within 21 days of filing.
This year’s average refund is more than $3,200, according to the latest IRS data.
If you believe the IRS owes you money, you don’t have to send in a check by April 18 to the IRS, of course. However, you should be confident that you are correct in your assessment, otherwise you’ll face penalties for failing to pay your debt to the IRS.
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What States Are Receiving An Extension
Victims of the in Illinois, Kentucky and Tennessee are receiving a tax-filing extension from the original date of April 18, 2022, set by the IRS.
Taxpayers in those states will have to file until May 16, 2022, to file individual and business tax returns, as well as make any tax payments.
Taxpayers do not need to contact the agency to get this relief, but the IRS says if an affected taxpayer receives a late filing or late payment penalty notice from the IRS that has an original or extended filing, payment or deposit due date falling within the postponement period, the taxpayer should call the number on the notice to have the penalty abated.
In addition, the IRS will work with any taxpayer who lives outside the disaster area but whose records are located in the affected area.
Taxpayers qualifying for relief who live outside the disaster area need to contact the IRS at .
This also includes workers assisting the relief activities who are affiliated with a recognized government or philanthropic organization.
When Can I Expect My Refund
If you file electronically and choose direct deposit, the IRS says you can expect your refund within 21 days, assuming there are no problems with your return.
The IRS has already processed more than 70 million returns for fiscal 2021 and issued nearly 52 million refunds. But the agency has also warned about delays in processing returns, especially as the 2022 tax season involved complications like stimulus payments and an expanded child tax credit.
“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 don’t face processing delays,” IRS Commissioner Chuck Rettig said in a statement.
Experts agree direct deposit is the fastest way to get your refund from the IRS.
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Will There Be An Extended Tax Deadline In 2022
With COVID challenges, the tax deadline has been extended in recent years to provide more time for taxpayers and the government to get things together. States followed suit in recent years. There hasnt been any official word from the IRS, but I do not anticipate a tax deadline extension in 2022. I could see a few states extending their deadlines. Check back here for updates.
The Department Of Revenue Is Extending The Filing And Payment Deadline For Hall Income
The irs extended the tax deadline for 2021 from april 15 to may 17 for all individuals. If you are an individual or business that successfully extended your tax filing to october 15, 2021, you now have until january 3, 2022 to file. The deadline for federal individual income tax returns to may 17. While april 15 is the most . For most small businesses, this years tax deadline is march 15, 2021. The department of revenue is extending the filing and payment deadline for hall income. On march 17, 2021, the irs officially extended the federal income tax filing deadline from april 15 to may 17. In order for an extension to be valid, at least 80% of the tax liability must be on account on april 15, 2021 through payments, withholding, and credits. For those making quarterly estimated payments using quarterly taxes, the dates are . The individual income tax payment and filing deadline has been extended by 32 days to may 17, 2021, without penalties and . Its that time of year again: If you are a sole proprietor . That means taxpayers who owe .
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Irs Filing Date Extension Confirmed
The original date for filing your taxes was 15 April 2021 but the deadline has been extended to 17 May in order to help taxpayers navigate the unusual circumstances related to the pandemic.
#IRS urges you to beware of schemes trying to steal Americans third round of Economic Impact Payment. Dont engage potential scammers online or on the phone. #COVIDreliefIRS
IRSnews
Once this change to the date was announced, IRS Commissioner Chuck Rettig issued a statement:
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.
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.
#IRS and extend filing and payment deadline for individuals to May 17, 2021. Details at
IRSnews
Individual taxpayers can now also postpone federal income tax payments for the 2020 tax year due on 15 April 15, 2021, though to 17 May , without penalties and interest, regardless of the amount owed.
Tax Day 2021 Deadline: The Last Day You Can File And How To Get An Extension
The IRS has officially postponed the deadline for 2021.
Clifford Colby
Managing Editor
Clifford is a managing editor at CNET. He spent a handful of years at Peachpit Press, editing books on everything from the first iPhone to Python. He also worked at a handful of now-dead computer magazines, including MacWEEK and MacUser. Unrelated, he roots for the Oakland A’s.
Justin Jaffe
Managing editor
Justin Jaffe leads the CNET Money team. He is the coauthor of Uninvested , which explores how financial services companies take advantage of customers — and how you can protect yourself. Justin has more than 20 years of experience publishing books, articles and research on technology and financial subjects for Wired, IDC and others.
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With millions of Americans still struggling to navigate COVID-19 and its impact on the economy, the IRS has elected to once again postpone the date that your federal income tax return is due. The new deadline of May 17, which will give you an extra month or so to get your paperwork in order this year, isn’t quite as generous as last year’s extension, which ran to July 15 — but, if you’re playing catch-up, it’s better than nothing.
As such, the best thing you can do is to start now. Filing early means a quicker turnaround on your refund and getting any missing stimulus money faster.
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What Happens If You File Taxes Late
If you are getting a refund, there is no penalty, according to H& R Block. Then again, not getting your money from the IRS might be punishment enough.
If you owe the IRS, the penalties kick in. TurboTax says penalties can reach 5% of the amount owed for each month you are late. The maximum amount taxpayers can be penalized is 25% of the amount due, according to TurboTax.
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You Did Not Owe The Irs For 2020
Regardless of the year, the most ideal situation you can be in when facing IRS deadlines is not to owe the IRS money in the first place. The reason for this boils down to a simple point. IRS penalties and interest accrue based on your tax balance. And it doesnt matter how you do the math: Zero dollars times anything equals zero dollars.
So if you didnt owe the IRS any money to begin with, or if the IRS actually owed you money, missing the 2021 tax extension deadline wont put you in a position of accruing penalties and interest on your tax balance. Technically, you would receive a failure to file penaltybut because you dont have a tax balance in the first place, the penalty effectively disappears.
There are other adverse impacts of failing to file, but we think they fall more into the bucket of what youve missed out on, rather than hard consequences. Well cover them in the next section: Benefits of Filing by the 2021 Tax Extension Deadline.
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