What Is Income Tax
Tax is a pivotal arm for the good governance of a state or nation.
There are different types of taxes and they can all be categorized into two main groups i.e Direct tax and Indirect Tax.
Income tax due dates every year in March ending must be followed strictly for safeguarding financial interest.
A popular example in this regard would be the GST or the VAT.
Like all taxes, accrues from Income Tax also constitute a good portion of the country/state treasury. In addition to these Income Tax also acts as a fiscal deficit stabilizer as well as minimizing the impact of Global Economic Cycles.
Latest Official Update In Income Tax:
- The CBDT has extended the last date for updating UDINs for all the IT forms at the e-filing portal till 30th April, 2022. Read more
- The CBDT department enabled can easily download reports for filing tax audit reports in the assessment year 2021-2022 in the Taxpayers. The CBDT department enabled utility on new ITR version 2.0 website for Forms 3CA-CD & 3CB-CD. Read PDF
- The Income-tax department again extended the due date for linking PAN with Aadhaar and penalty proceeding from 30th September to 31st March 2022.Read more
- The central government has issued the press release for relaxation of TDS provisions u/s 194A under the Income-tax act.Read more
- Income Tax Department conducts searches in Mumbai and other regions Read Press Release
|On or Before 15th March
Note: The Assessee who are covered under 44AD and 44ADA are also required to pay Advance Tax on or before 15th March of the previous year. However, any tax paid till 31st March will be treated as Advance Tax.
Latest Update: Income Tax Changes Due to Covid19
What You Need To Know For The 2022 Tax
Canada Revenue Agency
Last year, Canadians filed almost 31 million income tax and benefit returns. Having the information you need on hand to file your return makes the filing process that much easier. We want to help you get ready, so you are in good shape when it comes time to file your return this year.
Here you will find information on filing options, COVID-19 benefits, and whats new for this tax-filing season.
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Tax Deadlines: April To June
- :Deadline for employees who earned more than $20 in tip income in March to report this income to their employers.
- : Deadline for household employers who paid $2,300 or more in wages in 2021 to file Schedule H for Form 1040.
- : All individuals must file their 2021 personal tax returns, or Form 1040 or Form 1040-SR by this date. This is also the deadline to request an automatic extension for an extra six months to file your return, and for payment of any tax due.
- : Deadline for filing 2021 personal tax returns if you live in Maine or Massachusetts.
- May 10, 2022: Deadline for employees who earned more than $20 in tip income in April to report this income to their employers.
- : Deadline for employees who earned more than $20 in tip income in May to report this income to their employers.
- :Deadline for second-quarter estimated tax payments for the 2021 tax year.
- :Deadline for U.S. citizens living abroad to file individual tax returns or file Form 4868 for an automatic four-month extension.
S Corporation And Partnership Tax Returns Due
Business owners filing taxes for an S corporation or partnership have less time to do their taxes. March 15 is the deadline to file your S corporation tax return or Partnership return . If youâre an S corporation, see our full guide on S corp taxes and deadlines.
Note that S corporations and Partnerships do not pay taxes on their income. That tax is paid on the individual incomes of the shareholders or partners, respectively.
March 15 is also the deadline to file for an extension for S corp and partnership tax returns.
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What Happens If You File Personal Taxes Late
Filing your taxes late when you have earned a refund or dont owe any further tax will not result in any fees or penalties. However, if you owe money and file late, the CRA charges you a penalty on the taxes owed equal to five percent plus an additional percent for each month late up to 12 months. Taxes owed to the CRA are due the day your tax return is due for individuals. If you cannot pay the full amount, the CRA will accept late payments but charges compound daily interest on all amounts due.
For example, if you owe the CRA $10,000 and you file your tax return 5 months late, the CRA will apply a 10 percent penalty and your tax bill is increased to $11,000.
Protecting You From Scams And Fraud
The safety and security of Canadians, and their information, is a priority for the CRA. Being a victim of scams, fraud, or identity theft can result in significant financial and emotional effects.
Know when and how the CRA might contact you. The Be Scam Smart page provides information on the ways in which the CRA may contact you, including by:
- text message
We also provide information on securing CRA accounts and encourage you to:
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Nonresident Athlete Individual Income Tax
A nonresident individual who is a member of the following associations is considered a professional athlete and is required to electronically file a Louisiana income tax return, IT-540B reporting all income earned from Louisiana sources:
- Professional Golfers Association of America or the PGA Tour, Inc.
- National Football League
- East Coast Hockey League
- Pacific Coast League
Income from Louisiana sources include compensation for the services rendered as a professional athlete and all income from other Louisiana sources, such as endorsements, royalties, and promotional advertising. The calculation of income from compensation is based on a ratio obtained from the number of Louisiana Duty Days over the total number of Duty Days. Duty Days is defined as the number of days that the individual participated as an athlete from the official preseason training through the last game in which the individual competes or is scheduled to compete.
What Happens If You Miss Due Date And Last Date
In case you miss the December 31 deadline, you would be required to file an appeal for condonation with the commissioner of income tax of your ward for refund and losses carried forward.
A new form ‘ITR U’ has to be used for updated return and reasons must be give for updating your income. It could be: return previously not filed, income not reported correctly, reduction of carried forward loss, wrong rate of tax and others.
As per the Income Tax department, more than three crore ITRs have been filed on e-Filing portal till 25th July, 2022.
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File A Tax Extension Request Online
IRS e-file is the IRS electronic filing program, which allows you to send tax forms, including Form 4868, directly to IRS computers. You can get an automatic extension to file your tax return by filing Form 4868 electronically through IRS e-file on your own, using free or commercial tax software, or with the help of a tax professional who uses e-file.
In any case, you will receive an email acknowledgment you can keep with your tax records.
If your adjusted gross income is below a specified figure$73,000 for 2021you can use brand-name software at no cost from Free Filea free service that provides taxpayers with federal tax preparation and e-file options.
If your income is above the threshold, you can use the IRS Fillable Forms tool. There are also some tax software companies that offer free filing under certain conditions.
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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When Are Taxes Due
For most taxpayers, the main income tax return deadline for 2021 tax returns is April 18 aka IRS Tax Day 2022. The deadline was changed from the usual April 15 because thats the date of Emancipation Day, which is treated like a federal holiday for tax filing purposes, in Washington, D.C. Most state deadlines also fall on April 18 this year, but you should check with your state to confirm.
The deadlines differ for individuals versus businesses, and it depends in part on whether you use a calendar year or a fiscal year. If youve already missed a deadline, file and pay your taxes as soon as possible to stop additional interest and penalties from accruing.
File A Tax Extension Request By Mail
It’s also possible to file Form 4868 in paper form. You can download the form from the IRS website or request to have a paper form mailed to you by filling out an order form on the IRS website. Alternatively, you can call the IRS at 800-829-3676 to order a form. Your local library or post office may also have copies.
Notably, if you are a fiscal year taxpayer, you can only file a paper Form 4868.
If you recognize ahead of time that youll need an extension, dont wait until the last minute to submit Form 4868. The earlier you get it in, the more time youll have to fix any potential errors that may come up before the deadline passes and the extension door closes.
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Filing Due Dates For The 2021 Tax Return
For most people, the 2021 return has to be filed on or before April 30, 2022, and payment is due .
File your return early or before the due date to avoid being charged interest and penalties and to prevent a disruption to your benefit and credit payments, such as:
- GST/HST credit, including any related provincial or territorial credits
- Canada child benefit , including related provincial or territorial payments
- Old age security benefits
Why Would I Owe Taxes
Well the more allowances you claimed on that form the less tax they will withhold from your paychecks. The less tax that is withheld during the year, the more likely you are to end up paying at tax time. In a nutshell, over-withholding means youll get a refund at tax time. Under-withholding means youll owe.
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Itr Filing Deadline Is July : What Happens If You Miss The Last Date
The deadline to file an income tax return was July 31, 2022. However, if, for some reason, you did not manage to file your ITR before the deadline, watch this video to find out what will happen and what options are available to a taxpayer post the deadline.
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How Do I Know That The Data Is Correct
This year, for the first time, you can view third-party data certificates submitted by third party data providers on your behalf. Simply log in to eFiling and following the steps below:
- Once successfully logged in, click on Third Party Data Certificate Search menu option displayed as part of the left menu option.
- Once you have selected the Third Party Data Certificate Search menu option, the Request Third Party Certificates screen will be displayed.
- On the Request Third Party Certificate form, select the Certificate Type and Tax Year.
- Click on the Certificate Type drop down list and select the appropriate certificate type.
- Click on the Tax Year drop down list and select the appropriate tax year.
- Once you have made the applicable selection, click on the Submit Query button displayed at the bottom of the page.
- The Certificate Type selected will be displayed and you will be able to click on to view your Certificate.
- Note the certificate cannot be used to submit to SARS.
If there is an error or the data is incomplete:
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Who Must Pay Quarterly Taxes
If you expect to have a tax liability of $1,000 or more for the tax year, then you likely have to pay quarterly taxes. If you underpay, you might be subject to a penalty. If you overpay, you’ll get your money back as a refund.
The US tax system operates on a “pay-as-you-go” basis. If you earn money that isn’t subject to withholding from an employer Social Security and Medicare tax, known as FICA, and income tax then you’ll have to pay taxes every few months on those earnings, rather than waiting until annual tax returns are due.
This can include earnings from the sale of an investment, rental income, dividends, interest, and self-employment income. Also, if you receive unemployment benefits and don’t opt-in to withholding, you’ll be responsible for making quarterly estimated payments.
how much you need to pay in quarterly taxes
Even if you did fill out a W-4 through your employer to withhold taxes from your paycheck, you might have to pay quarterly taxes if your withholdings don’t cover the smaller of 90% of your tax liability for the current year, or 100% of your tax liability for the previous year .
You are not required to pay estimated taxes if you meet three conditions: you had no tax liability for the prior year, you were a US citizen or resident for the whole year, and your prior tax year covered a 12-month period.
Farmers and fishermen as defined by the IRS have special rules.
Tax Deadlines: January To March
- : Deadline for employees who earned more than $20 in tip income in December to report this income to their employers on Form 4070.
- :Deadline to pay the fourth-quarter estimated tax payment for tax year 2021.
- : Your employer has until Jan. 31 to send you your W-2 form reporting your 2021 earnings. Most 1099 forms must be sent to independent contractors by this date as well.
- :Deadline for employees who earned more than $20 in tip income in January to report this income to their employers. You can use Form 1070 to do so.
- : Deadline for financial institutions to mail out Form 1099-B relating to sales of stock, bonds, or mutual funds through a brokerage account, Form 1099-S relating to real estate transactions and Form 1099-MISC, unless the sender is reporting payments in boxes 8 or 10.
- : Deadline for businesses to mail Forms 1099 and 1096 to the IRS.
- : Deadline for farmers and fishermen to file individual income tax returns unless they paid 2021 estimated tax by Jan. 18, 2022.
- : Deadline for employees who earned more than $20 in tip income in February to report this income to their employers.
- :Deadline for corporate tax returns for tax year 2021, or to request an automatic six-month extension of time to file for corporations that use the calendar year as their tax year, and for filing partnership tax returns or to request an automatic six-month extension of time to file .
- : Deadline for businesses to e-file Forms 1099 and 1098 to the IRS, except Form 1099-NEC.
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