What If I Need More Time
Don’t let a looming tax deadline force you to rush through the tax filing process and make a mistake on your return. Simply request an extension.
Just keep in mind, the tax extension gives you more time to file your return, not more time to pay the tax you owe. You’ll need to estimate the amount you owe and make your payment by the tax filing deadline.
Nonresident Athlete Individual Income Tax
A nonresident individual who is a member of the following associations is considered a professional athlete and is required to electronically file a Louisiana income tax return, IT-540B-NRA reporting all income earned from Louisiana sources:
- Professional Golfers Association of America or the PGA Tour, Inc.
- National Football League
- East Coast Hockey League
- Pacific Coast League
Income from Louisiana sources include compensation for the services rendered as a professional athlete and all income from other Louisiana sources, such as endorsements, royalties, and promotional advertising. The calculation of income from compensation is based on a ratio obtained from the number of Louisiana Duty Days over the total number of Duty Days. Duty Days is defined as the number of days that the individual participated as an athlete from the official preseason training through the last game in which the individual competes or is scheduled to compete.
Get Started Now Irs Urges
The IRS hopes the earlier starting date will allow the agency to get a head start on processing, which IRS Commissioner Chuck Rettig described as a “massive undertaking” in a statement released by the agency.
“IRS teams have been working non-stop these past several months to prepare,” Rettig said. “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.”
The IRS is mailing special notification letters to recipients of American Rescue Plan Economic Impact Payments or advance Child Tax Credit payments noting the amount received.
To avoid processing delays and speed refunds, the IRS urges people to follow these steps:
You can use a bank account, prepaid debit card, or mobile app for direct deposit. You will need to provide routing and account numbers.
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Tax Day 202: These States Don’t Require You To File A Tax Return
Federal taxes are due April 18 — and most state taxes are due then, too. But residents of these states don’t have to worry about state income tax.
This year, federal tax returns are due on April 18, and as of right now, there’s no indication that this date will be moved. That means for most Americans, both federal and state taxes are due mid-April — with a few exceptions. But not every state collects income tax, which means not all Americans have to file state taxes.
Unless you live in one of the few states that don’t collect income taxes, you’re on the hook for filing a state return. State tax deadlines vary you can check yours on the Federation of Tax Administrators website.
Some tax software will throw in state filing for free if you pay to prep a federal return, but others charge an extra fee. And, if you’ve recently moved — or work in a different state than where you live — you might need to file more than one state tax return, which may cost you even more to file, depending on which tax software you use.
Resident Individual Income Tax
Resident taxpayers who are required to file a federal individual income tax return are required to file a Louisiana income tax return, IT-540, reporting all of their income. If a Louisiana resident earns income in another state, that income is also taxable by Louisiana. A temporary absence from Louisiana does not automatically change your domicile for individual income tax purposes. As a resident taxpayer, you are allowed a credit on Schedule G for the net tax liability paid to another state if that income is included on the Louisiana return.
Residents may be allowed a deduction from taxable income of certain income items considered exempt by Louisiana law. For example, Louisiana residents who are members of the armed services and who were stationed outside the state on active duty for 120 or more consecutive days are entitled to a deduction of up to $30,000. In each case, the amount of income subject to a deduction must be included on the Louisiana resident return before the deduction can be allowed.
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Awaiting Processing Of Previous Tax Returns People Can Still File 2021 Returns
Rettig noted that IRS employees continue to work hard on critical areas affected by the pandemic, including processing of tax returns from last year and record levels of phone calls coming in.
“In many areas, we are unable to deliver the amount of service and enforcement that our taxpayers and tax system deserves and needs. This is frustrating for taxpayers, for IRS employees and for me,” Rettig said. “IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us. And we will continue to look for ways to improve. We want to deliver as much as possible while also protecting the health and safety of our employees and taxpayers. Additional resources are essential to helping our employees do more in 2022 and beyond.”
The IRS continues to reduce the inventory of prior-year individual tax returns that have not been fully processed. As of December 3, 2021, the IRS has processed nearly 169 million tax returns. All paper and electronic individual 2020 refund returns received prior to April 2021 have been processed if the return had no errors or did not require further review.
Taxpayers generally will not need to wait for their 2020 return to be fully processed to file their 2021 tax returns and can file when they are ready.
Key Information To Help Taxpayers
The IRS encourages people to use online resources before calling. Last filing season, as a result of COVID-era tax changes and broader pandemic challenges, the IRS phone systems received more than 145 million calls from January 1 May 17, more than four times more calls than in an average year. In addition to IRS.gov, the IRS has a variety of other free options available to help taxpayers, ranging from free assistance at Volunteer Income Tax Assistance and Tax Counseling for the Elderly locations across the country to the availability of the IRS Free File program.
“Our phone volumes continue to remain at record-setting levels,” Rettig said. “We urge people to check IRS.gov and establish an online account to help them access information more quickly. We have invested in developing new online capacities to make this a quick and easy way for taxpayers to get the information they need.”
Last year’s average tax refund was more than $2,800. More than 160 million individual tax returns for the 2021 tax year are expected to be filed, with the vast majority of those coming before the traditional April tax deadline.
Overall, the IRS anticipates most taxpayers will receive their refund within 21 days of when they file electronically if they choose direct deposit and there are no issues with their tax return. The IRS urges taxpayers and tax professionals to file electronically. To avoid delays in processing, people should avoid filing paper returns wherever possible.
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What Could Cause A Refund Delay
There are countless reasons your tax refund could be delayed. Weve outlined some common instances where a delay could occur:
- If you file a paper return, the IRS says you should allow about six weeks to receive your refund.
- If the IRS mails you a physical check, you will receive a check through the mail.
- If you file Form 8379, Injured Spouse Allocation, it could take up to 14 weeks to process your tax return.
- If your identity has been stolen and another return was filed with your social security number, it could take longer for the IRS to sort out the situation.
- If you owe a debt, like unpaid child support, your refund could be offset to pay part or all of it.
Each of the possibilities above could cause a delay or prevent receiving the refund altogether. Its important to note that each individuals tax scenario is unique and no two filings are handled exactly the same.
If You Need Help With Your Return
If you are unable to get help filling out your North Carolina return, you can contact a service center for assistance or call toll-free at 1-877-252-3052. Your federal return must be completed before we can assist you in filling out your North Carolina return.
If you are disabled, have a low income, or are a senior citizen, income tax returns can be prepared free of charge through the Volunteer Income Tax Assistance or the Tax Counseling for the Elderly programs. For location and dates of assistance call the Internal Revenue Service toll-free at 1-800-829-1040.
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When Will You Receive Your Refund
The IRS has historically said that it issues refunds in less than 21 days for most returns, but it can take up to six weeks if you mail in a paper return. The organization advises you to add another estimated 10 days to allow for the postal delivery process if you’re requesting a paper check for your refund rather than direct deposit.
Child Tax Credit Or Credit For Other Dependents
If you have qualifying children under the age of 17 and meet other criteria, you may also be eligible for the child tax credit or credit for other dependents. This includes people who have:
Dependent children who are age 17 or older at the end of 2020.
Parents or other qualifying individuals they support.
Use the Child-Related Tax Benefits page of IRS.gov for more information.
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Providing Additional Income Support To Canadians
The Government of Canada has indicated from the outset that there would be no penalties or interest in cases where CERB needs to be repaid. However, we recognize that, for some individuals, repaying the CERB could present a significant financial hardship. For this reason, we will give Canadians more time and flexibility to repay based on their ability to pay. We will work with impacted individuals on a case-by-case basis. There is no deadline to repay COVID-19 emergency benefit payments.
If you mistakenly received COVID-19 emergency benefit payments, or your situation has changed since you first applied for one of these benefits, you can repay the CRA via My Account, online banking, or mail.
Newly announced on February 9, 2021, targeted interest relief is being provided to Canadians who received COVID-related income support benefits. Once individuals have filed their 2020 income tax and benefit return, they will not be required to pay interest on any outstanding income tax debt for the 2020 tax year until April 30, 2022.
Self-employed individuals who applied for the CERB and would have qualified based on their gross income will not be required to repay the benefit, provided they also met all other eligibility requirements. The same approach will apply whether the individual applied through the CRA or Service Canada.
Extension To File Your Tax Return
If you cant file your federal income tax return by the due date, you may be able to get a six-month extension from the Internal Revenue Service . This does not grant you more time to pay your taxes. To avoid possible penalties, estimate and pay the taxes you owe by the tax deadline of May 17, 2021.
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Additional Tax Filing Facts To Keep In Mind
- Up to 70% of taxpayers are eligible to file their taxes for Free. In addition, commercial partners of the IRS offer free brand name software to 100 million individuals and families who make less than $62,000.
- Online tax forms allow you to have electronic versions of IRS paper forms regardless of your income. They can be prepared and filed by you if you are comfortable preparing your income taxes.
- VITA and TCE provide free tax help to those who qualify. You can learn more about them by going to the IRS website and entering free tax prep in the search box. Alternatively, you can download the IRS2Go mobile app on your phone and find a free tax prep provider that way.
Filing If You Received Covid
The CRA and Service Canada processed more than 27 million Canada Emergency Response Benefit applications, totaling more than $81 billion in payments to Canadians. The CRA also processed more than 2 million Canada Emergency Student Benefit applications that totaled more than $2 billion in payments.
If you received CERB, CESB, Canada Recovery Benefit , Canada Recovery Sickness Benefit , or Canada Recovery Caregiving Benefit payments, you will have to enter on your return the total of the amounts you received. You will receive a T4A and/or a T4E tax slip in the mail with the information you need for your return. You can view tax slips online as of February 8, 2021 in My Account. Residents of Quebec will receive both a T4A and RL-1 slip from the CRA, however, the RL-1 slip will not be available for viewing in My Account.
The CRA recognizes that receiving these slips might generate questions for Canadians. Individuals who believe they received a T4A or a RL-1 by mistake or believe there may be discrepancy with the information provided on these slips should contact the CRA.
If you received the CERB or CESB, no tax was withheld when payments were issued. If you received the CRB, CRSB, or CRCB, 10% tax was withheld at source. For Quebec residents who received the CRB, CRSB, and CRCB, 5% of the tax withheld will be reported on the T4A slip and the other 5% will be reported on the RL-1 slip.
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Are You A Day Trader Or Investor
First, you need to determine if youre a day trader or investor. It all comes down to how often you trade, how long you hold the equities, and the amount of time you spend trading.
If you buy and sell equities as an investment, youre an investor and should report any profits or losses on a capital account.
If, on the other hand, you day trade like a securities dealer and buy and sell on a daily basis with the aim of making a short-term profit on small price fluctuations, any gains should be reported as business income.
The Tax Filing Deadline
Typically, taxes must be filed by April 15. However, this year, you have until April 18, 2022 to file a 2021 Form 1040 or Form 1040-SR and pay any tax due, according to the drafted IRS 2021 tax year instructions.
If you live in Maine or Massachusetts, you have until April 19, 2022 to file your Form 1040 or Form 1040-SR. This is because April 15, 2022 is Emancipation Day and April 18, 2022 is Patriot’s Day.
Those wishing to file their returns later can request a six-month extension from the IRS, pushing the filing deadline back to Oct. 17 of 2022, if they’re not ready to prepare and file their tax return by April 18 .
Typically, the extension end date falls on Oct. 15 each year, but in 2022, that date is a Saturday. To receive the extra time, you must file Form 4868 rather than a tax return by the April date.
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What Happens If I Miss The Tax Deadline
If you are owed a refund, there is no penalty for filing federal taxes late, though this may be different for your state taxes. Still, it’s best to e-file or postmark your individual tax return as early as possible.
If you owe the IRS, penalties and interest start to accrue on any remaining unpaid taxes after the filing deadline. The late-filing penalty is 5% of the taxes due for each month your return is behind, with fees increasing to up to 25% of your due balance after 60 days have passed. You may also incur a late-payment penalty, which is 0.5% of the taxes due for each month your return is late, with penalties increasing to up to 25% of your unpaid tax, depending on how long you take to file.
Another caveat: If you’re serving in the military — in a combat zone or a contingency operation in support of the armed forces — you may be granted additional time to file, according to the IRS.
How Much You Have To Make To File Taxes
Your first consideration is: Does my level of earnings mean I must file taxes? If your gross income for 2021 is above the thresholds for your age and filing status, you must file a federal tax return. See the table below.
In addition to federal taxes, you may also have to pay state taxes. Currently, nine states dont tax income at all, while two other states only tax investment income. You can find out if you owe state income taxes by going to your states revenue, finance or taxation offices website. The IRS also has a link to every states tax office.
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