What Is Tax Day This Year

Contribute To Or Open An Ira By Tax Day

Contributions to a traditional IRA can be tax-deductible. You have until the April 18, 2022, tax deadline to contribute to an IRA, either Roth or traditional, for the 2021 tax year. The maximum contribution amount for either type of IRA is $6,000 or $7,000 if you’re age 50 or older. See all the rules here.

» MORE: Learn how IRAs work and where to get one

Take Action To Avoid Penalties

Most importantly, avoid taking no action at all before the April 18 deadline.

If you dont file your return by Tax Day and dont file an extension, youll risk missing out on your tax refund if youre owed one, and could pay both interest on unpaid balances and penalties for failure to pay or file.

If you dont pay your estimated taxes due youll take on a penalty equal to 0.5% of taxes owed after Tax Day for each month the tax isnt paid, up to 25%.

If you know that you could owe a huge balance, that 0.5% could add up really quick, says Chan.

Even if you cant pay all the taxes you owe right now, look into short- and long-term payment plans the IRS offers. You may qualify to enroll in a plan to pay your taxes over time. Though these plans may still charge interest, they wont be as costly as the mounting non-payment penalties you could face otherwise.

How Do You File For An Extension

You can file an extension for your taxes in a few different ways, including the following:

• With the IRS Free File Tool where you can include your estimated payments.
• Pay some of or all of your estimated income tax and when doing so, indicate that the payment is intended to be for an extension.
• File the electronic Form 4868- Application for Automatic Extension of Time To File U.S. Individual Income Tax Return- via your computer or with a tax professional. When filing electronically, make sure to have a copy of your tax returns from the prior year.
• You can also file a paper version of this form-, still being Form 4868.

Dont forget that your request for an extension has to be filed either on or before the date that your original tax payment was due.

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File For An Extension By Tax Day

If you can’t finish your return by the April 18 tax deadline, file IRS Form 4868. This will buy most taxpayers until Oct. 17 to file their tax returns. See more about how extensions work.

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.

» MORE: See how to set up an installment plan with the IRS by yourself

What Is Tax Day

In the United States, tax season generally runs between January 1 and April 15 each year for filing and paying taxes for the previous year. Tax Day refers to the final deadline date when individual federal tax returns and tax payments are due. Most states that levy income taxes set the same deadline for their residents to file their state income taxes.

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Is Tax Day A Public Holiday

Although Tax Day is not a public holiday, businesses and schools may be closed because it falls on the same date as Patriots’ Day in 2022, which is a public holiday in Maine and Massachusetts.

Tax Day is an important date to remember.

©iStockphoto.com/joel-t

The 2020 tax filing date has been moved from April 15 to July 15 in light of the COVID-19 novel coronavirus crisis.

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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File Electronically And Choose Direct Deposit

To speed refunds, the IRS urges taxpayers to file electronically with direct deposit information as soon as they have everything they need to file an accurate return. If the return includes errors or is incomplete, it may require further review that may slow the tax refund. Having all information available when preparing the 2021 tax return can reduce errors and avoid delays in processing.

Most individual taxpayers file IRS Form 1040 or Form 1040-SR once they receive Forms W-2 and other earnings information from their employers, issuers like state agencies and payers. The IRS has incorporated recent changes to the tax laws into the forms and instructions and shared the updates with its partners who develop the software used by individuals and tax professionals to prepare and file their returns. Forms 1040 and 1040-SR and the associated instructions are available now on IRS.gov. For the latest IRS forms and instructions, visit the IRS website at IRS.gov/forms .

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.

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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 Is The Last Day To File Taxes

The last day to file taxes for individual federal income tax returns is April 15, or as late as April 18 in the event Tax Day falls on a Saturday, Sunday or official holiday. Some state-level holidays can extend the tax deadline by one day further. You can request a six-month filing extension through filing Form 4868, making your last day to file individual income taxes October 17, 2022.

If you also file taxes for your small business as a partnership, LLC or S Corp, the last day to file taxes is March 15 unless it falls on a weekend or official holiday. If your business runs on a non-calendar tax year, your federal tax return is generally due by the 15th day of the third month following the end of the tax year.

Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.

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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.

What Happens If You Miss The Deadline

If you miss the tax filing deadline, the IRS recommends filing your late return as soon as possible to avoid a failure-to-file penalty. The IRS wont charge a failure-to-file penalty when a refund is due. However, there is a three-year statute of limitations on refunds. If you file more than three years after your deadline, then you wont get your money.

Individuals who miss the payment deadline may be subject to a failure-to-pay penalty along with interest charges on the amount due. An exception might be allowed if youre experiencing hardship and file a special extension.

Try to file your taxes as early as possible to avoid missing the deadline. Start gathering your documents as soon as you receive them, and be sure to make an appointment if youre working with a tax professional. Even if the IRS extends the due date, it might be in your best interest to file early, especially if youre expecting a refund.

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Important Dates In The 2022 Tax Year You Need To Know

• 6th April 2022: The beginning of the 2022/2023 tax year, starting from which new tax rates and allowances go into effect, according to the UK governments tax policy.
• 19th April 2022: The deadline for final PAYE submissions due for the 2021/2022 tax year ending on April 5th, 2022.
• 30th April 2022: From this day, penalties for any unfiled Self-Assessment tax forms from the previous tax year are applied.
• 5th July 2022: This is the last day to agree on a PAYE Settlement Agreement with HM Revenues and Customs.
• 31st July 2022: For the self-employed, this is the last day to make a second payment for your taxes owed from the previous tax year. After this date, penalties will be applied to SA returns and unpaid taxes due by January 31st of the 2021/2022 tax year.
• 5th October 2022: The deadline for submission of tax returns for the tax year.
• 31st October 2022: The deadline for submission of tax returns in paper format for the tax year ending 5th April 2021.
• 5th April 2023: The end of the 2022/2023 tax year.

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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State Tax Deadlines For Filing 2021 Individual Returns

Most states require individual taxpayers to file their state income taxes by Tax Day. Thats easy to remember because it is the same deadline as the federal tax deadline. However, there are several states that impose different deadlines and nine states that have no income tax. You can see the deadline for each state and the District of Columbia in the table below.

Why Are Taxes Due April 18 Instead Of April 15 This Year

Tax Day is usually on April 15. But when a tax deadline falls on a Saturday, Sunday or holiday, it’s pushed back to the next available business day. April 15 was on a Friday this year, so the weekend rule didn’t apply. But Emancipation Day was observed in the District of Columbia on April 15. The holiday honors the end of slavery in Washington, D.C. Since April 15 was a legal holiday in D.C., the IRS couldn’t require tax returns to be filed that day. The next business day was April 18 so that became the new federal income tax filing deadline this year for most people.

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The History Of Tax Day

The Revenue Act of 1861- which was set up to help with the funding of the Civil War- was the first glimpse of federal income tax to be introduced in the United States.

However, the act was considered unconstitutional and was ultimately repealed and readopted.

There were no voluntary tax returns- instead of being based on assessments-, and tax payment dates would vary.

The very first Tax Day came to be when the Sixteenth Amendment- the amendment which allowed Congress to levy an income tax without needing to apportion it amongst states based on their population- was ratified in 1913.

Tax Day Now July 1: Treasury Irs Extend Filing Deadline And Federal Tax Payments Regardless Of Amount Owed

IR-2020-58, March 21, 2020

WASHINGTON The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020.

Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.

Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief. Individual taxpayers who need additional time to file beyond the July 15 deadline, can request a filing extension by filing Form 4868 through their tax professional, tax software or using the Free File link on IRS.gov. Businesses who need additional time must file Form 7004.

The IRS urges taxpayers who are due a refund to file as soon as possible. Most tax refunds are still being issued within 21 days.

The IRS will continue to monitor issues related to the COVID-19 virus, and updated information will be posted on a special coronavirus page on IRS.gov.

Treasury and IRS will issue additional guidance as needed and continue working with Congress, on a bipartisan basis, on legislation to provide further relief to the American people.

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Deadline For Hurricane Ida Victims

Tax filing deadlines for residents of six different states impacted by Hurricane Ida have also been moved back. Victims of Hurricane Ida who live in Connecticut, Louisiana, Mississippi, New Jersey, New York and Pennsylvania now have until Feb. 15, 2022, to file various individual and business tax returns and make tax payments.

The IRS has postponed various tax filing and payment deadlines that occurred starting on dates that vary by state:

Individuals and businesses impacted by the storm will have until Feb. 15, 2022, to file returns and pay any taxes that were originally due during these periods. The extension also applies to quarterly estimated income tax payments that were due on Sept. 15, 2021, and Jan. 18, 2022. As a result, taxpayers in these areas can now skip making their estimated tax payments for the third and fourth quarters of 2021 and simply include them when they file their 2021 return.