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.
Ira Contributions For 2021
If you want to put more money in an IRA and have it count towards your 2021 contributions, you have until the end of the day today to make that move . That’s because you have until your tax return filing deadline for the year to fund an IRA for that year. But remember that there are limits to the amount you can contribute to an IRA each year. For 2021, you can put away up to $6,000 in an IRA $7,000 if you’re age 50 or older.
If you haven’t already maxed out your 2021 IRA contributions, doing so before today’s tax deadline can be a smart move. First, contributions to a traditional IRA are often tax deductible, while withdrawals from a Roth IRA are tax-free. So, whether you contribute to a traditional or a Roth IRA, you can cut your tax bill now or in the future.
Low- and moderate-income people who contribute to an IRA might also qualify for the Saver’s Credit, which can be worth as much as $1,000 .
If you contribute to an IRA for 2021 by today’s tax filing deadline, you can claim the IRA deduction and/or the Saver’s Credit on your 2021 tax return. That means you can get the tax benefits immediately, instead of waiting until next year if you were to contribute the same amount after today .
Also note that the tax return filing deadline is also the last day to withdraw any excess 2021 contributions to your IRAs . So, if you put in more than the $6,000 limit , take it out now to avoid stiff penalties.
Members Of The Military
If youre stationed outside the United States or Puerto Rico on May 1, you have until to file your return and pay any taxes you owe.Enclose a statement explaining that you were out of the country, and write Overseas Rule on the top of your return and on the envelope.
Combat ZoneIf youre serving in a combat zone, you receive the same filing and payment extensions allowed by the IRS, plus an additional 15 days, or a 1-year extension from the original due date. If you claim this extension, write Combat Zone on the top of your return and on the envelope. For more information, see Tax Bulletin 05-5. Extensions also apply to the spouses of military members who are serving in combat zones.Military Deployment Outside the United States Combat or NoncombatIf youre deployed to military service outside the U.S., youre allowed a 90-day filing extension following the completion of deployment. If youre using this extension, write Overseas Noncombat on the top of your return and the envelope.Note: If youre deployed in combat service, you can use whichever extension is more beneficial for you .
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Tax Extension: The October Deadline For Filing Your Return Is Almost Here
If you are among the roughly 19 million people who asked the IRS for another six months to file their taxes in 2022, time is almost up.
Almost 1 in 8 taxpayers asked for an extension to file their taxes this year, according to data from the IRS, which expects a total of about 160 million tax returns to be filed in 2022. While most Americans file their returns before the traditional April 15 deadline, people who needed more time were able to automatically receive another six months from the tax agency in order to get their files in order.
This year, the tax extension deadline for filing your 2021 return is October 17, rather than the typical date of October 15, because the 15th falls on a Saturday. Yet while that gives taxpayers a little more breathing room, experts have recommended filing as soon as possible in order to avoid last-minute pitfalls. They also recommend sending your return electronically, since the IRS has struggled mightily with processing paper returns during the pandemic.
“Using the electronic filing options can make people’s lives easier than mailing in paper tax returns,” said Eric Bronnenkant, head of tax at Betterment, told CBS MoneyWatch.
Typically, about 1 in 10 taxpayers asks for an extension, but this year may have seen a jump in requests for extra time because of the ongoing pandemic and the complexity of a tax year that included the enhanced Child Tax Credit and other tax changes.
The Advanced Child Tax Credit Is So Confusing How Should I Handle That On My Tax Return
Good news: You are not imagining things. The child tax credit is causing headaches for both filers and tax pros alike.
There were a lot of temporary changes made to the child tax credit just for 2021. For starters, it was raised to $3,600 per child ages 5 and under, and to $3,000 per child ages 6 through 17.
It was also temporarily made fully refundable for 2021, meaning you can get the maximum amount of the credit even if it exceeds your federal income tax liability.
But heres where the real confusion comes in: The IRS likely has already sent you half the credit youre entitled to through monthly checks sent out between July and December.
You should have gotten a letter from the IRS in the past couple of months detailing what youve been paid already. Thats an amount you will need to report on your return. And then you will have to claim the other half of the credit youre owed, which you will get by way of a refund.
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Tax Tips For Canadians
To help you navigate tax season, weve rounded up our 15 most popular and helpful tips, from how long to keep tax documents to what happens if you lie on your return. Youll also find advice for dealing with U.S. investments, how much money to set aside for taxes if youre self-employed, and much more, with links to our full articles on each topic. There really is something for everyone.
How Long Does It Take To Get A Tax Refund
The IRS anticipates most taxpayers will receive refunds, as in past years. Most should receive them within 21 days of when they file electronically if they choose direct deposit . Last years average federal refund was more than $2,800.
The IRS says many factors can affect the timing of a refund after the IRS receives a return electronically. A manual review may be necessary when a return has errors, is incomplete or is affected by identity theft or fraud.
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When The Deadline Is Different
Submit your online return by 30 December if you want HMRC to automatically collect tax you owe from your wages and pension. Find out if you are eligible to pay this way.
HMRC must receive a paper tax return by 31 January if youre a trustee of a registered pension scheme or a non-resident company. You cannot send a return online.
HMRC might also email or write to you giving you a different deadline.
Apply For An Extension Of Time To File An Income Tax Return
If you cannot file on time, you can request an automatic extension of time to file the following forms:
- Form IT-201, Resident Income Tax Return
- Form IT-203, Nonresident and Part-Year Resident Income Tax Return
- Form IT-203-GR, Group Return for Nonresident PartnersNote: Group agents must enter the special identification number assigned to the partnership in the Full Social Security number field.
- Form IT-204, Partnership Return
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Know The Tax Deadlines That Apply To You So You Dont Get Hit With Irs Penalties Or Miss Out On A Valuable Tax Break
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If you miss a tax deadline, the IRS can hit you hard with penalties and interest. For instance, the standard penalty for failing to file your annual tax return on time is 5% of the amount due for each month your return is late. If you pay your taxes late, the monthly penalty is 0.5% of the unpaid amount, up to 25% of what you owe, plus interest on the unpaid taxes. Similar penalties apply for missing other deadlines. And there could also be other negative consequences for being late, like losing out on a valuable tax break.
Its easy to avoid these headaches, though just dont miss the deadline! But we realize that its not always easy keeping track of all the various IRS due dates. So, for those of you who need a little help remembering when to file a return, submit a report or pay a tax, we pulled together a list of the most important 2022 federal income tax due dates for individuals. Theres at least one deadline in every month of the year, so play close attentionwe dont want you to get in trouble with the IRS.
NOTE: Some of the 2022 due dates listed below are extended for victims of recent natural disasters. In addition, several 2021 due dates were extended to January 3, 2022, for other natural disaster victims. For more information on these extensions, see our articles for victims of:
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The Deadline To Apply For New Jerseys Anchor Property Tax Relief Is Quickly Approaching
New Jersey Statehouse in Trenton.
Officials in New Jersey are urging people to apply for property tax relief under the new ANCHOR program before the Jan. 31, 2023 deadline.
Qualified homeowners making less than $150,000 in 2021 will receive a tax credit of $1,500, while those making $150,000 to $250,000 will get a tax credit of $1,000. Renters who made $150,000 or less will receive a direct check for $450.
The program was a key component of this years state budget. Democrats claim it will make the state more affordable, despite Republicans asserting the program would not do enough.
The Legislature is a step closer to removing a requirement that lawmakers addresses be kept private, except for the town and county where they own land.
5 days ago
The Murphy Administration said Monday that roughly half of the states expected two million eligible residents have already applied. In the fall, state leaders extended the application deadline from October to January to include people enrolled in a Payment in Lieu of Taxes program.
Assemblyman Roy Freiman noted that, historically, raising public awareness about first-time programs like ANCHOR can be challenging.
Its brand new, its new in scope, I think it takes time to become aware of something that passes in the budget in the end of June, to rolling out with a deadline in October, Freiman said. We want to make sure we get the actual refund checks out as quickly as possible.
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Here Are A Few Resources On Irsgov To Help Last
- IRS Free File Available through October 17, IRS e-file is easy, safe and the most accurate way to file taxes. There are eight Free File products available in English and two in Spanish. Filing electronically can also help taxpayers determine their earned income tax credit, child and dependent care credit, and recovery rebate credit.
- Online Payments Taxpayers can pay online using IRS Direct Pay at no cost or use a debit card, credit card or Digital Wallet, which may be subject to a payment processing fee.
If theyre filing through tax software or a tax preparer, taxpayers can schedule a payment when filing.
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Time To Make Contributions To Iras And Health Savings Accounts Extended To May 17
In extending the deadline to file Form 1040 series returns to May 17, the IRS is automatically postponing to the same date the time for individuals to make 2020 contributions to their individual retirement arrangements , health savings accounts , Archer Medical Savings Accounts , and Coverdell education savings accounts . This postponement also automatically postpones to May 17, 2021, the time for reporting and payment of the 10% additional tax on amounts includible in gross income from 2020 distributions from IRAs or workplace-based retirement plans. Notice 2021-21 also postpones the due date for Form 5498 series returns related to these accounts to June 30, 2021.
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What You Need To Know About The Oct 17 Deadline
If you have requested an extension, you must file your taxes on or before the final deadline. The IRS has already granted additional time to prepare your tax return. Any filers who miss this extended deadline will be subject to a failure-to-file penalty that can be as high as 25% of the amount owing, depending on how long it takes them to pay, and additional penalties. For this reason, it is imperative that anyone who has not yet filed get their taxes in order and filed before the deadline passes.
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What If I Cannot Complete And File My Return On Time
To avoid a late filing penalty, you must file your return by Oct. 16, 2023. Do not send an incomplete return.
To avoid other penalties and interest, you must pay your tax by the due date. If you do not know your total tax due, you may estimate the amount and pay it by the due date. To see your payment options and make a payment, go to .
For more information, see Minnesota Statute 270C.395.
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Reasons To File Your Return Before The Tax Deadline
While its tempting to celebrate the news of the 2021 tax deadline extension, there are a lot of compelling reasons to file your return well in advance of the new May 17 deadline.
Here is a list of reasons to consider filing your taxes sooner rather than later
- Some taxes are still due on April 15
While the federal taxes deadline may have shifted to May 17, the date for estimated quarterly tax payments remains April 15. This may or may not affect you, depending on what state you live in.
For the last tax year, most states adjusted the estimated quarterly tax payment date to match the new federal tax deadline, so try to stay in the loop in your state.
- You could qualify for a stimulus payment
Theres a chance that by filing your taxes sooner rather than later, you could qualify for the most recent stimulus payment.
The latest stimulus payment is calculated according to your 2020, so if you noticed a decrease in income that year, you should file your taxes as soon as possible to give yourself a chance of receiving the payment sooner.
- You will have more time to make sure you filed correctly
One of the main reasons to do anything early is to give yourself more time.
If you have more time, you are more likely to notice any mistakes and provide any additional information if necessary. You give yourself the luxury of speaking with your tax consultant about any deductions you may be eligible for and anything else you might have missed out.
- You could receive a refund faster
When Is Tax Day 2022
The deadline for filing your 2021 taxes is April 18, 2022. Typically, April 15 is designated by the U.S. government as the day taxes are due every year. April 16 is Emancipation Day in Washington, and since it falls on a Saturday this year, the holiday will be officially observed on the closest weekday, April 15.
With few exceptions, Tax Day in the United States has fallen on the same date since 1955: April 15. And while the IRS extended the filing and payment deadlines for the 2019 and 2020 tax years because of the COVID-19 pandemic, dont expect any extra time to pay and submit your 2021 return.
The IRS began accepting and processing 2021 tax returns toward the end of January.
Given the rule changes going into effect in 2022 as well as potentially complicating factors, like this years expanded child tax credit payments and repayment of deferred Social Security taxes, taxpayers have even more incentive to get moving on their 2021 returns.
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