How To Elect The Various Tax Designations
There are two different forms you may need to fill out to change your LLCâs tax filing type. The form you use depends on how you want your LLC to file.
IRS Form 8832, the Entity Classification Election form, is what LLC owners use to elect to be taxed as a corporation or disregarded entity . âDisregarded entityâ is a fancy way to refer to sole proprietorships and partnerships because they report their income on the business ownersâ personal income tax return. Since they arenât taxed as a separate entity, these businesses are considered âdisregardedâ entities.
Form 8832 must be submitted within 75 days of the formation of your business or the start of your fiscal year. So if you use the calendar year as your fiscal year, the last day you can file Form 8832 is March 15. However, if you need to file late, Part II of the form can be filled out to apply for a late election.
The other filing type your business can opt for is the S corporation. Before opting to file as one, get familiar with the differences between LLCs and S corporations. While S corps may look good on paper, stricter requirements can add unnecessary complexity to your business.
Quarterly Payroll Taxes For Employers
If you employ one or more people in your business, you should file Form 941, Employers Quarterly Federal Tax Return. Then deposit your taxes on the following dates:
- for first quarter
- for second quarter
- for third quarter
- for fourth quarter of the previous calendar year
The IRS gives you an additional 10 calendar days to file your return if you deposit all your taxes before they are due.
I Have Questions About My Taxes Can I Call The Irs
There are numerous ways to contact the IRS. The agency no longer offers live online chatting, but you can still submit questions through its online form. If you prefer to talk to a person, the IRS maintains a number of dedicated phone lines that are open Monday through Friday, from 7 a.m. to 7 p.m. . Individuals can call 800-829-1040 and businesses can call 800-829-4933. Note, however, that the IRS says “live phone assistance is extremely limited at this time.”
And there’s always the Interactive Tax Assistant, an automated online tool that provides answers to a number of tax law questions. It can determine if a type of income is taxable, if you’re eligible to claim certain credits and whether you can deduct expenses on your tax return. It also provides answers for general questions, such as determining your filing status, whether you can claim dependents or if you even have to file a tax return.
If you have a question for the IRS specifically related to stimulus checks and your taxes, the IRS recommends that you check IRS.gov and the Get My Payment application.
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What Happens If I Miss The Tax Deadline
If you received an extension and fail to file your income taxes by midnight on Oct. 15, what happens next depends on your situation. If you are owed a refund, there is no penalty for filing late, though this may be different for your state taxes. But if you owe the IRS, penalties and interest start to accrue on any remaining unpaid tax due. There’s also a $330 failure-to-file penalty under the Taxpayer First Act of 2019.
In most states, taxpayers who are granted a federal extension to file automatically receive an equivalent extension to file their state income tax return.
An important note: If you are owed a refund or you filed for an extension through Oct. 15, you were supposed to pay your taxes by May 17. If you owe money, you would have been required to estimate the amount due and pay it with your Form 4868. If you did that, you should have automatically been granted an extension.
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.
Bottom line? It’s best to e-file or postmark your individual tax return as early as possible. CNET’s roundup of the best tax software for 2021 features an array of packages that can help you take care of business quickly and affordably.
See also
What Is Covered By The Extension:
- Taxpayers have until July 15, 2020 to file 2019 income tax returns and make income tax payments that otherwise would have been due on April 15, 2020.
- Taxpayers have until July 15, 2020 to make estimated income tax payments for 2020 that otherwise would have been due on April 15, 2020.
- The extension is available for all types of taxpayers, including individuals, trusts, estates, corporations, and any type of unincorporated entity.
- Taxpayers do not have to be sick, quarantined, or otherwise impacted by COVID-19 to qualify for the extension.
- Taxpayers do not need to take any action to obtain the extension to July 15, 2020 it is automatic but will have to file for any extension beyond July 15, 2020.
- There is no limitation on the amount of federal income tax that may be deferred under the extension.
- An individual taxpayer who properly estimates their 2019 tax lability and files an extension by July 15, 2020 has until October 15, 2020 to file their 2019 income tax return.
- To avoid the imposition of interest and penalties, an individual taxpayer filing their tax return after July 15, 2020 must pay their properly estimated 2019 tax liability with their extension request .
- Taxpayers also have until July 15, 2020 to contribute to a 2019 IRA, HSA, or Archer MSA.
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What Is Backup Withholding
The person or business paying the taxpayer doesn’t generally withhold taxes from certain payments. They don’t do this because it’s assumed the taxpayer will report and pay taxes on this income when they file their federal tax return. There are, however, situations when the payer is required to withhold a certain percentage of tax to make sure the IRS receives the tax due on this income. This is what’s known as backup withholding. If a payer does backup withholding, they are required to deposit that withholding on those payments with the IRS.
Federal Income Tax Deadline For 2021 Tax Returns
The filing deadline for the 2021 tax year is April 18, which falls on a Monday. If you need even more time to complete your 2021 federal return you can request a six-month extension by filing Form 4868 through your tax professional, tax software or using the Free File link on IRS.gov. Filing Form 4868 gives taxpayers six extra months to file their 2021 tax return but does not grant an extension of time to pay taxes due. You may owe a late payment penalty on any tax not paid by the original due date of your return.
If you mail in your return, it must be postmarked April 18, 2022, or sooner. The IRS typically issues refunds within 21 days after a tax return is filed.
People who still want to contribute to an individual retirement account for the 2021 tax year still need to make contributions by April 15, 2022. It is also necessary to include contributions made to traditional IRAs on your tax return. If you contributed to a Roth IRA during 2021, you wont need to report those contributions on your tax return.
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Deadlines For December Tornado Victims
Following the disaster declarations issued by the Federal Emergency Management Agency , the IRS announced relief for victims of the December tornadoes, severe storms and flooding in parts of Kentucky, Illinois and Tennessee.
Affected individuals and businesses in certain areas of these states will have until May 16, 2022, to file returns and pay any taxes that were originally due on or after Dec. 10, 2021. This includes 2021 individual income tax returns due on April 18, as well as various 2021 business returns normally due on March 15 and April 18. As a result, affected taxpayers will also have until May 16 to make 2021 IRA contributions.
The May 16 deadline also applies to the quarterly estimated tax payments normally due on Jan. 18 and April 18, as well as the quarterly payroll and excise tax returns originally due on Jan, 18. As a result, taxpayers can skip making their Jan. 18 payment and simply include it with their 2021 return. Additionally, the quarterly payroll and excise tax returns that were originally due on Jan. 31, 2022 and May 2, 2022 now can be filed by May 16, 2022.
What Is The Business Tax Deadline For 2022
The main tax date in 2022 will be . Individuals, sole proprietors, and C corporations need to file their taxes by this date. The main tax day usually falls on April 15. However, April 15, 2022, is Emancipation Day.
Residents of Maine and Massachusetts have until , as April 18th is also a legal holiday .¹
Depending on the type of business you run and what your primary source of income is, you may have different business tax filing deadlines.
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When Will I Get My Tax Refund
How quickly you can expect to see your refund depends on how you file, when you file and which payment method you choose. Filing online and filing earlier usually results in faster processing. In a normal year, the typical turnaround ranges from one to three weeks, but given the extreme abnormality of the past year, all bets are off.
To speed up refunds during the pandemic, the IRS is asking taxpayers to file electronically with direct deposit as soon as possible, so the IRS can deposit your refund right into your bank account. Tax software companies, including IRS Free File partners, began transmitting those returns to the IRS back on Feb. 12.
If you choose an e-Collect direct deposit, where your tax preparer’s fee is deducted from your refund, it may add a few more days to your wait. A paper check may take several weeks to arrive.
Here’s how to estimate your tax refund.
The History Of Tax Filing Dates
In 1860 the Civil War had proved to be very costly to fund. President Lincoln with the approval of Congress enacted the first income tax requiring citizens to pay a tax on monies they had earned. At that time the deadline for completing and filing individual income tax returns was set for March 1st.
Several years after the Civil War, during a former world pandemic, the Spanish Flue, the deadline was pushed to March 15th. Later during the great tax overhaul of 1954, the date was moved to April the 15th and this has remained the deadline, with a few exceptions as mentioned above.
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How Are Individuals Affected By The Tax Deadline Extension
The tax extension deadline generally applies to all calendar year tax-paying entities, including individuals, self-employed persons, and trusts and estates. The Treasury and IRS announced the deferment of filing your federal tax return as well as specific federal tax payments. This delay in payment comes interest- and penalty-free, for 90 days, until July 15, regardless of the amount owed.
Furthermore, anyone who needs to make quarterly estimated tax payments also has until July 15 to submit these payments. This means your 2020 tax year first and second quarter estimated tax payments, previously due on April 15 and June 15, are now both deferred until July 15.
Federal Income Tax Deadline In 2022
After the COVID-19 pandemic pushed back the filing deadline for federal income taxes two years in a row, taxes for the 2021 tax year will once again be due in April.
Circle April 18, 2022, on your calendar because thats the one general date by which most filers need to get returns into the IRS. While taxes are typically due on April 15, this years Tax Day falls on Emancipation Day, a legal holiday observed in Washington D.C. As a result, most filers will have until the next business day, April 18, to submit their tax returns.
However, you may have a different deadline if you filed for an extension or if you are a corporation. Heres a rundown of all the deadlines you need to keep track of.
Given fluid tax filing rules its important to ensure your investments are protected. A financial advisor can help you make sure your tax filings dont unnecessarily hurt your assets.
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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.
| 2022 State Income Tax Deadlines |
| State |
Is Tax Filing Compulsory
It depends.
If you donât owe taxes to the government, you may not need to file a tax return. However, there are other reasons why you may need to file a return and they include if:
- You are expecting a tax refund. Duh! CRA wonât chase you around if you donât owe them. If you want whatâs yours i.e. tax refund, you better go get it!
- You are eligible for and want to collect government benefits including GST/HST credits, Canada Child Benefit, GIS or Allowance benefits.
- You have an open Home Buyersâ Plan or Lifelong Learning Plan account through your RRSP.
- You are contributing to the Canada Pension Plan .
There are a few other scenarios where a tax return filing is required even if you do not owe taxes. If in doubt, just file there are many ways to do it for cheap, or even free.
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Contribute To Your Health Savings Account
This medical account, available to individuals who have a high-deductible health plan, provides a tax-saving way to pay for out-of-pocket costs. You have until the April 18, 2022, tax deadline to contribute to an HSA for the 2021 tax year. The 2021 limits were $3,650 for an individual HSA owner and $7,200 for a family. For 2022, the individual coverage contribution limit is $3,650 and the family coverage limit is $7,300. If you’re 55 or older, you can put an extra $1,000 in your HSA.
» MORE: Learn more about the tax effects of HSAs and flexible savings accounts
When Are Taxes Due Important Tax Deadlines And Dates
OVERVIEW
Make sure your calendar is up-to-date with these important deadlines, dates, possible extensions and other factors in play for both individuals and businesses in 2021.
For information on the third coronavirus relief package, please visit our American Rescue Plan: What Does it Mean for You and a Third Stimulus Check blog post.
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Allocate Estimated Tax Payments
A trust or decedents estate may choose to distribute estimated tax payments to beneficiaries.
To distribute the estimated tax payments to beneficiaries, the trust or decedents estate must file Form 541-T by the 65th day after the close of the current taxable year.
If a trust files by calendar year, it must file Form 541-T by .
When Is Tax Day 2022
As of now, the deadline for filing your 2021 taxes is April 15, 2022. Typically, April 15 is designated by the U.S. government as the day taxes are due every year .
The IRS has yet to announce when it will start accepting 2021 tax returns, although in previous years, the date usually falls around mid-February. Filing ordinarily begins in January.
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Does This Extension Also Give Me More Time To Contribute Funds To My Hsa Or Archer Msa For 2019
Yes. Similar to the extended time granted for making retirement account contributions, you may also make contributions to your HSA or Archer MSA by July 15, 2020 for the 2019 tax year. Keep in mind that to ensure accuracy on Form 8889, its often best to make any contributions prior to filing your tax return.
TurboTax Self-Employed will ask you simple questions about your life and help you fill out all the right forms. Perfect for independent contractors and small businesses. Well search over 500 tax deductions to get you every dollar you deserve and help you uncover industry-specific deductions.
When Are Taxes Due If I File An Extension
If you file Form 4868 and receive the automatic six-month extension, you will have until Oct. 15, 2022, to submit your 2021 tax return.
If you already know that youll need an extension, plan on filing Form 4868 sooner rather than later. That way, if anything goes wrong with your application, youll have plenty of time to fix any errors and resubmit it ahead of the April 15 tax deadline. This also ensures you have time to get your documents together for your extended deadline in October. The IRS website has all the forms, deadlines and information youll need.
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No April 15th: Tax Filing Deadline Changed For 2022
The tax deadline for 2022 has changed.IRS, Ohio, RITA
Because the April 16 holiday this year falls on a Saturday, it will officially be observed on the closest weekday Friday, April 15 closing city and federal offices in D.C. That means the tax day deadline is getting pushed back to Monday, April 18 for everyone except residents of Maine and Massachusetts. Residents in those states must file by April 19 since April 18 is Patriots Day.
Other deadlines
Employers have until Jan. 31 to send W-2 earnings forms.
The IRS has not announced the day it will begin accepting 2021 returns. Last year, the IRS began accepting tax returns on Feb. 12, roughly two weeks later than the year before, a change the tax agency said was necessary due to the processing of stimulus payments.
Generally, about 90% of filers receive their refunds within 21 days when they file electronically and there are no issues with the return, the IRS said.
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