When Are Taxes Due
Last year was another unusual year for taxes, with the IRS automatically extending the tax filing deadline and the date federal income tax payments were due. There has been no such announcement this year.
The tax filing deadline for most individuals and businesses for the 2021 tax year is April 18, 2022.*
* Notes:
- Because Maine and Massachusetts celebrate Patriots Day on April 18, the tax-filing deadline for residents is April 19, 2022.
- The tax-filing deadline was extended to May 16, 2022 for those who live in states that were devastated by the December 2021 tornadoes, namely Illinois, Kentucky and Tennessee. You do not need to file an extension if this applies to you.
You can file a tax extension if you are not ready to file your taxes by the deadline. This year, the tax deadline when you file an extension is Oct. 17 however, any federal income tax payments are due by the original tax-filing deadline. It is recommended to make an estimated tax payment prior to the tax deadline if you believe you will owe federal taxes.
When To Expect Your 2022 Irs Income Tax Refund
Will the 2022 tax filing season be normal? According to tax attorney Ken Berry, its not likely that when Spring 2022 comes around that everything will be like it was in 2019 or before. Covid-19 will still be a concern, several stimulus tax laws will still be challenging for some filers, and new tax laws may very well be created between now and then that add more complexity.
But the income tax filing process will likely be closer to normal than either 2020 or 2021 were, which both had extended filing deadlines due to closures of IRS offices, the tax courts, and IRS and tax firm staff being new to remote working.
In other words be ready to have your taxes filed The good news is that the federal and state income tax returns filing process should be closer to normal, as well. Depending on when a taxpayer files, they can often receive their tax refund payments within only 2-3 weeks.
Traditionally , the IRS starts accepting tax returns during the last week of January. If major new tax legislation is passed at the end of the year, however, this could push the start of tax season back by a week or two. So, early tax filers who are a due a refund can often see them as early as mid or late February. However, taxpayers with the Earned Income Tax Credit or Child Tax Credit generally have their refunds delayed by about one month while the IRS confirms eligibility for these credits.
Several factors can determine when a taxpayer may receive their tax return, including:
| May 23 |
California Increases Fee Collection Requirements For Marketplace Facilitators
California legislation AB-1402 extends the registration and filing requirements related to marketplace facilitators that goes beyond the Departments existing laws requiring marketplace facilitators to register, collect, and remit sales and use taxes with the department. Effective January 1, 2022, marketplace facilitators are required to register, collect, and remit lead-acid battery recycling fees, lumber products assessment, electronic waste recycling fee, and tire fees with the California Department of Tax and Fee Administration. Excluded from this requirement are local prepaid mobile telephony surcharges.
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What If I Am Asked To Verify My Identity Or For More Information
After you submit your return, you may receive a letter from the Department requesting additional identification. Please respond as soon as possible to avoid a delay of your refund. You may provide additional information, including requested documents, online through myVTax, select Respond to correspondence. If we ask you to verify that the return the Department has received is truly your return, you also may respond through myVTax select Return filing verification.
Early Refund Advance Loan*& The Holiday Shopping Season
For qualifying customers, there are loans available based on their estimated federal income tax refund. Those loans can make a huge difference if you need money for holiday shopping and other expenses in mid-December. You may consider applying for an Early Refund Advance, a no fee, 0% APR loan from MetaBank®, N.A. available to qualifying clients who prepare their taxes with Jackson Hewitt. For 2020 tax filers, Early Refund Advance loan amounts are between $200-$700.
No W-2, no problem. Just present your paystub or other acceptable income verification to apply for Early Refund Advance*. In January, provide your W-2 or other tax documents to complete filing your taxes and apply for additional Refund Advance loan amounts. See if you prequalify online before meeting with a Tax Pro. Loan available within 24 hours if disbursed on a prepaid card or in 1-5 business days with direct deposit. Terms and conditions apply.
Recommended Reading: Www.1040paytax.com Official Site
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How Should You Request To Receive Your Refund
The IRS gives you three options for receiving your refund:
- Direct deposit
- Paper check
- Deposit into U.S. Savings Bonds
You can also apply a refund to any future taxes owed. This is a popular choice among some small business owners who are required to pay estimated taxes.
Of the three refund options available to you, direct deposit is the fastest and safest option. You can receive your refund via an ACH bank transaction in as little as a few days. Paper checks, however, can take over a week to process, several days to travel via the postal system, and several days to clear your bank.
*Note:Some tax software companies also offer the option of receiving a tax refund on a prepaid debit card. Im not particularly fond of this option, but it is available to some tax filers. In this case, the refund is first sent to the tax preparation company, then they issue you the prepaid debit card.
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.
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The Agency Has Several Million Pieces Of Backlogged Work From Prior Years
Internal Revenue Service officials said there are no plans to delay filing deadlines this year.
WASHINGTONThe Internal Revenue Service will begin accepting 2021 individual income-tax returns on Jan. 24, and administration officials are already warning of paperwork backlogs and difficulty reaching IRS employees on the telephone during this years filing season.
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, IRS Commissioner Charles Rettig said in a statement. IRS employees want to do more, and we will continue in 2022 to do everything possible with the resources available to us.
This tax-filing seasonwith an April 18 deadline for most individualswill be complicated for a few reasons. For starters, the IRS is in a hole, because it enters the year with several million pieces of backlogged work from prior years instead of about one million in a typical year. That stems from office closures during the pandemic as well as the challenge of administering new tax benefits and programs created by Congress over the past two years.
Taxpayers will also have to reflect child tax credits and economic stimulus payments they received in 2021 on their returns, adding a source of complexity and potential confusion and mistakes.
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Will Stimulus Checks Be Taxed
For those who received stimulus checks, the income is not taxable at the federal level. You might recall that the first check was for up to $1,200 for eligible adults and $500 per dependent, and the second check was up to $600. Although some states are taxing the income, these payments are not subject to California income tax.
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Is The Irs Accepting Efile 2021
If you miss the April 18, 2022 deadline to prepare and e-File a 2021 Tax Return or you e-Filed an extension by that date, you can e-File your 2021 Taxes until October 15, 2022. You wont face any late filing penalties if youre expecting a refund, dont owe taxes, or if the IRS accepted your 2021 Tax Extension.
Irs Tax Stimulus Checks For 2022 Perhaps With Recovery Rebate Credit
Some people might want to file returns even though they’re not required to do so to claim a Recovery Rebate Credit or the 2021 stimulus payments.
According to the IRS, individuals who didn’t qualify for a third Economic Impact Payment or got less than the full amount may be eligible to claim the Recovery Rebate Credit. For those who got some money, the IRS says youll need to know the total received to calculate the correct rebate credit to avoid processing delays.
The IRS will send Letter 6475 starting in late January with the total amount of the third Economic Impact Payment received. Economic impact payment amounts also can be viewed on IRS online accounts.
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California Issues Fact Patterns Protected Under Pl 86
On February 14, 2022, California released Technical Advice Memorandum 2022-01, that provides guidance and examples of activities protected under P.L. 86-272. The TAM takes into account how the economy has changed since P.L. 86-272 was enacted due to technological advancements.
The Franchise Tax Board indicated businesses operations similar to the following fact patterns are not protected under P.L. 86-272:
- The taxpayer has an employee who telecommutes on a regular basis from within California performing business management and accounting tasks.
- The taxpayer regularly provides post-sale assistance to California customers via either electronic chat or email that their customers initiate by clicking on an icon on the business website. For example, the business regularly advises customers on how to use the products after delivery.
- The taxpayer solicits and receives on-line applications for its branded credit card via the business website from California customers. The issued cards will generate interest income and fees for the business.
- The taxpayer remotely fixes and/or upgrade products previously purchased by California customers by transmitting code or other electronic instructions to whose products via the Internet.
- The taxpayer offers and sells extended warranty plans via its website to California customers who purchase the business products.
When Will The Irs Issue Tax Refunds In 2022
The IRS says it typically issues refunds in 21 days or less after accepting your return. However, if you are planning on claiming the CTC or the EITC for 2021, your acceptance date could be delayed.
When you file a tax return and claim either the CTC or EITC, the IRS spends more time verifying the information to ensure it is accurate. Approximately 35 million families received CTC payments in 2021, which means they will have to wait longer than others for the IRS to issue their refund.
The IRS did state in a recent press release, however, that by law, the agency could not begin issuing refunds involving the EITC or CTC before mid-February. While you still will be able to file your 2021 tax return on Jan. 24, your refund wont be processed until mid-February.
The 2022 tax filing season begins Jan. 24. Remember: Avoid delays this year by having all essential info before you file. Errors or missing information result in the #IRS taking longer to process your refund. See:
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When To Expect Your Refund If You Claimed The Earned Income Tax Credit Or Additional Child Tax Credit
- You choose to get your refund by direct deposit
- We found no issues with your return
However, some taxpayers may see their refunds a few days earlier. Check Wheres My Refund for your personalized refund date.
Additionally, your financial institution may need time to accept your direct deposit or issue a debit card. Many institutions dont process payments on weekends or holidays. So, if you file early, be aware of federal and local holidays that may affect how soon you get your refund.
Protecting Americans From Tax Hikes
The Protecting Americans from Tax Hikes made changes to the tax law:
- Refund delays: If you claim the EITC or ACTC, we cant issue your refund before mid-February.
- Social Security number: You, your spouse and all qualifying children or relatives you claim on your tax return must have a valid Social Security number that was issued before the due date of the year youre filing for . This rule also applies to EITC claims you make when you amend your return or file an original return.
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Tax Filing Season Begins Feb 12 Irs Outlines Steps To Speed Refunds During Pandemic
IR-2021-16, January 15, 2021
WASHINGTON The Internal Revenue Service announced that the nation’s tax season will start on Friday, February 12, 2021, when the tax agency will begin accepting and processing 2020 tax year returns.
The February 12 start date for individual tax return filers allows the IRS time to do additional programming and testing of IRS systems following the December 27 tax law changes that provided a second round of Economic Impact Payments and other benefits.
This programming work is critical to ensuring IRS systems run smoothly. If filing season were opened without the correct programming in place, then there could be a delay in issuing refunds to taxpayers. These changes ensure that eligible people will receive any remaining stimulus money as a Recovery Rebate Credit when they file their 2020 tax return.
To speed refunds during the pandemic, the IRS urges taxpayers to file electronically with direct deposit as soon as they have the information they need. People can begin filing their tax returns immediately with tax software companies, including IRS Free File partners. These groups are starting to accept tax returns now, and the returns will be transmitted to the IRS starting February 12.
Last year’s average tax refund was more than $2,500. More than 150 million tax returns are expected to be filed this year, with the vast majority before the Thursday, April 15 deadline.
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Taxpayers After Filing Will Be Looking Forward To Receiving Their Tax Refund Might Be Wondering What Topic No 152 Is When They Check Wheres My Refund
The Internal Revenue Service began accepting 2021 tax returns 24 January, and most taxpayers have until 18 April 2022 to get their paperwork submitted. Depending on the method your 2021 tax return is sent, youll be able to check its status either 24 hours or four weeks after the fact online with the agencysWheres My Refund? tool.
According to the IRS over 90 percent of refunds are issued within 21 days, the agencys normal timeframe. There is always the possibility that some tax returns will require additional review delaying your tax refund, especially in light of changes made to several credits for the 2021 fiscal year. So what does it mean if you see Topic No. 152 when checking on your refund status?
Health Care Coverage Penalties
Californians who did not have qualifying health insurance throughout the year are subject to a penalty of $800 or more when they file their state tax returns. The penalty for a dependent child is half that of an adult a family of four could face a penalty of $2,400 or more. If you had health coverage in 2021, check the Full-year health care coverage, box 92, on your state tax return to avoid penalties.
You can get health coverage and financial help at CoveredCA.com. It is crucial to get health coverage to avoid penalties when filing your tax return next year. For information, visit ftb.ca.gov/healthmandate.
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California Amending Regs To Clarify How Petitions For Alternative Apportionment Are To Be Considered By The Ftb
The California Franchise Tax Board voted to proceed with adopting certain proposed amendments to California Code of Regulations, Title 18, section 25137 which permits a taxpayer to petition for the use of an alternative apportionment method, if the standard allocation and apportionment provisions do not fairly reflect the extent of a taxpayers business activity in California. There was limited formal guidance as to how such petitions were to be considered by the FTB, so the proposed amendments are aimed at addressing that issue.
May 2, 2020
