Can I File An Extension
As in past years, you can request an extension if you need more time to prepare and file your 2021 return. Before the April 15, 2022, deadline, you must fill out and submit Form 4868, the Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. At the time you file Form 4868, you must also pay the estimated income tax you owe to avoid penalties and interest, the IRS says.
Generally, taxpayers are granted an automatic six-month extension to file, or two months if theyre out of the country, in which case the extension also applies to payment of taxes owed.
To qualify for an extension, you must file Form 4868 before April 15, 2022. You will not be notified unless your request is denied.
What Is The Canada Worker Lockdown Benefit
After the Liberal party won another minority government in the Sept. 20 election, it announced plans to help Canadians, including the Canada Worker Lockdown Benefit. The new benefit, which came into effect on Oct. 24 following the end of the CRB, gives $300 a week to workers who were affected by lockdowns. This benefit is also accessible to people who couldnt get Employment Insurance. It runs until May 7, 2022.
Both the CERB and CRB are considered taxable income and must be reported on your 2020 and 2021 income tax returns. The new benefit will likely be treated the same way. Depending on your tax bracket, that could lead to a bigger tax bill in April 2021.
Federal Tax Deadline Extensions
The federal tax filing deadline for 2020 taxes has been automatically extended to May 17, 2021. Due to severe winter storms, the IRS has also extended the tax deadline for residents of Texas, Oklahoma and Louisiana to June 15, 2021.
This extension also applies to 2020 tax payments. Individual taxpayers may defer tax payments until the new filing deadline, interest and penalty free. The new federal tax filing deadline is automatic, so you don’t need to file for an extension unless you need more time to file after May 17, 2021.
If you file for an extension, you’ll have until October 15, 2021 to file your taxes. But, you’ll still need to pay any taxes you owe by May 17.
The new federal tax filing deadline doesn’t apply to 2021 estimated tax payments. First and second quarter estimated tax payment deadlines are still April 15, 2021 and June 15, 2021.
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Most Important Tax Dates For Business Owners
The following are the most important tax dates for businesses that use a calendar year as their tax year. If your business uses a fiscal year, taxes are due on the 15th day of the third or fourth month after the business tax year, depending on what type of business it is.
The dates for corporations are different from the dates for partnerships and S corporations because the partnership and S corporation income passes through to the owners of the business. Corporations, on the other hand, pay the taxes themselves.
Heres an at-a-glance look at the most important tax dates for business owners in 2021:
2021 Tax Dates for Businesses
Provide income statements to all employees, contractors and others who received payments from you, such as individuals you paid interest to. These statements are reported on Form W-2 or a range of Form 1099.
Provide Form 1099s for all investment transactions, barter transactions, real estate transactions, substitute payments and proceeds paid to an attorney to the recipients of such payments.
Turbotax Has You Covered
Many taxpayers scramble to figure out when are taxes due every year, but you can be confident that TurboTax is ready to help you file whenever you’re ready. TurboTax asks simple questions about your tax situation and helps you fill out the right forms and find every deduction you qualify for so you can get every dollar you deserve.
If you have additional questions, you can connect live to a TurboTax Live tax expert for unlimited tax advice or even have a tax expert or CPA file for you from start to finish.
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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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.
Filing Of Tax Return On Time
Individuals Tax Returns for 2021/22 will be issued on 1 June 2022. Taxpayers are required to complete and send the tax return back to the Inland Revenue Department within 1 month from the date of issue of the return . For sole-proprietors of unincorporated businesses, the deadline for submission is extended to 1 September 2022. An extension of 1 month will be given automatically if the return is filed electronically.
Filing your tax return on time, be a compliant taxpayer
If you file your Tax Return – Individuals on time, the information provided in your tax return will assist the Assessor to prepare your assessment correctly and your claims for deductions for tax allowances, approved charitable donations and home loan interest etc. will be duly taken into account.
Taxpayers who have earned no income or of an amount below their allowance entitlements do not have to pay tax. Nonetheless, should they receive a tax return from the IRD, they are still required to complete and send it back to the IRD in time.
Consequences of NOT filing your tax return on time
Non-receipt of tax return
If you change your postal address, you are required to within 1 month.
How to complete the tax return If you have any enquiry concerning the completion of the Tax Return – Individuals , you may call 187 8022 or see .
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What If You Owe Taxes
Theres another strong incentive to do your taxes on time: avoiding penalties and interest.
If youre late turning in your 2020 tax return and owe taxes, the CRA will charge you a late-filing penalty thats five per cent of your 2020 tax balance, plus another one per cent of your balance for each month your return is late, to a maximum of 12 months. On top of that, the tax agency will charge compound daily interest on your unpaid 2020 taxes, also starting May 1, 2021.
Sticking your head in the sand is not a good option, Ahmed-Haq says. Owing money to the CRA is very expensive.
The good news is the CRA said it wont be charging interest on 2020 taxes owing if your taxable income is $75,000 or less and you received one or more COVID-19 benefits in 2020. The interest relief will be in place until April 30, 2022, the tax agency said.
However, you still have to file your 2020 return by the deadline to avoid the late-filing penalty. Also note that the interest relief only applies to any 2020 taxes owing, not tax debt from previous years.
If you dont qualify for interest relief and cant pay your tax bill in full by April 30, the CRA expects you to put in your best effort to find the funds to pay the government, including by borrowing the money, Ahmed-Haq says.
What You Need To Know For The 2021 Tax
Canada Revenue Agency
This year, the COVID-19 pandemic may have affected your tax-filing situation and may also affect the way you usually file your income tax and benefit return. Over 30 million returns were filed last season, and the Canada Revenue Agency wants to help you get ready to file your return this year.
Heres what you need to know for this tax-filing season, including filing options, COVID-19 benefits, and whats new.
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Deadlines To Report Cash Tips
If you work a job where you earn tips that you donât have to report to your employer â like if your employer doesnât have a computerized point of sale system to log tips â then you need to report the tips to your employer by the 10th day of the next month. Make sure to include cash tips and any unreported tips from credit card and debit card transactions. If your tips were less than $20, you donât need to report them. One common way to report your tips to your employer is with IRS Form 4070.
If the 10th falls on a holiday or weekend, you have until the next weekday. The dates for reporting monthly tips to your employers in 2021 are:
Note that if you receive a non-cash tip, like event tickets or other items of value, you donât need to report it to your employer, but you should still include it on your tax return because it’s taxable income.
Paid Family And Medical Leave Contributions
Employers, other business entities and self-employed individuals electing PFML coverage are required to file Quarterly Returns through MassTaxConnect.
The first required quarterly return will cover the period from October 1, 2019 to December 31, 2019 and must be filed on or before January 31, 2020. All subsequent return filings will be due on or before the last day of the month following a calendar quarters close.
For more PFML information visit:
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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.
Home Buyers: Tax Credits And Other Measures For 2021
The government has a slew of tax-related proposals for Canadian home buyers, including:
- A new 15% Multigenerational Home Renovation tax credit on up to $50,000 in renovation and construction costs, for those who add a secondary unit to their home for immediate or extended family. This could result in up to $7,500 in tax savings.
- An increase to the 15% First-time Home Buyers tax credit, which would double the allowable claim to $10,000 from the current $5,000 and lead to a possible tax savings of up to $1,500.
- A new tax-free First Home Savings Account for Canadians under-40, so they can save up to $40,000 towards their first home. Contributions would be tax deductible and withdrawals tax-free with no strings attached. Unlike the Home Buyers Plan, which allows individuals to borrow up to $35,000 tax-free from their registered retirement savings plans , the funds must be paid back within 15 years.
- A new 15% home appliance repair tax credit on up to $500 in fees paid to a technician for fixing an appliance in your home do-it-yourself repairs do not qualify.
Unfortunately, these proposed housing-related tax changes are just thatproposals. So dont start planning that in-law suite just yet. Like all financial experts, Simmons is waiting to see if these measures come into effect. But shes also realistic about who the credits are likely to benefit and who might get left out: namely, those struggling to buy their first home.
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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.
How Do I File My Tax Return
You can file online by using NETFILE or by having a tax preparer file your tax return through the CRA’s EFILE service. We strongly encourage you to file your return online to get your refund faster and avoid any delays. Or, you can mail your paper return and supporting documents to your CRA tax centre. However, if you file a paper return, it may take 10 to 12 weeks to process it, due to possible COVID-19 delays.
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The above article is intended to provide generalized financial information designed to educate a broad segment of the public it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.
Individuals Living Abroad Or Traveling Outside The United States
If youre living or traveling outside the U.S. or Puerto Rico on May 1, you have until to file your return. You must still pay any tax you expect to owe by the May 1 due date.
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.
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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.
Will The Tax Deadline Be Extended Again
That remains to be seen. The IRS had no plans to extend the tax-filing deadline for the 2020 tax year, but it later changed course and pushed the standard April 15 deadline to May 17, 2021. The agency also delayed Tax Day the year prior in response to the COVID-19 pandemic.
While the state of the pandemic remains in flux, the IRS has so far given no indication that it will postpone the tax-filing deadline for the third year in a row. In addition, given the rules 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 a head start on their 2021 returns.
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