Fortunately, this year's tax filing deadline is not April 15. Now is the time for the reality check. The deadline for this year's income tax, April 18 for most taxpayers, is fast approaching.
With taxpayers crunching the numbers at the last minute, it's important to ignore the myths, do your math, and move on. Here are some things to consider in the final hours ahead of us.
How to file a tax extension
Regardless of your income, you can request an extension to file your taxes with the IRS Free File at IRS.gov. If you file Form 4868, you can get a six-month extension until October 16 to file your tax return.
But beware: your tax bill is due on April 18. You get an extension to submit, not an extension to pay for. If you think you owe money, it's important to pay as much as possible by April 18 to avoid interest and penalties.
The IRS estimates that in 2023, more than 20.5 million forms will be submitted electronically or on paper nationwide to request an extension.
If you get an extension, you don't have to wait until October to file the return. It is best to make the filing once you have all the required documents that will allow you to file an accurate return.
Is everyone required to file by April 18?
The IRS has a long list of federally declared disaster areas where the April 18 deadline does not apply. In these cases, you do not need to submit Form 4868 to receive an automatic renewal. Victims of severe storms and tornadoes in Tennessee that hit, for example, March 31 and April 1 now have until July 31 to file and make their federal income tax payments.
The IRS also provides such relief to disaster-affected taxpayers in several other states, including California, Alabama, Arkansas, New York, Mississippi and Georgia. Visit the IRS.gov website for details.
What happens if you don't file taxes?
It's true that a lot of people don't have to file a tax return because their income is so low that they don't have to. But did you have taxes withheld from a paycheck that you could repay through a tax refund? Have you made estimated payments?
If you submit a return, you may receive a refund of some of the money that was withheld. And many low-income working families would receive a larger tax refund if they qualified for the earned income tax credit.
The IRS has an online tool at IRS.gov to help you determine if you need to file a tax return. He says, "Do I have to file a tax return?" You'll need your filing status, federal income tax deductions (shown on a W-2 or year-end paycheck), and other basic information to determine your gross income. New enrollment thresholds are set each year.
For example, if you are single and under age 65, you must file a federal tax return if you earned more than $12,950 in 2022. If you are age 65 or older, the threshold is $14,700 for a single person. according to the IRS
If you are married and both spouses are under age 65, the IRS limit is over $25,900 for both spouses combined. Your age is determined by your age on 31/12/2022. For the elderly, the thresholds are slightly higher.
The IRS notes that self-employed people must file an annual tax return and pay estimated quarterly taxes if they had net self-employment income of $400 or more.
What happens if you file taxes late?
People who owe money or who imagine they owe a large sum of money may want to hide. But ignoring your taxes only makes things worse, as you'll be subject to a hefty fine if you owe money or don't ask for an extension.
A non-declaration penalty of 5% of the unpaid tax will be imposed each month or part of a month of late declaration, up to a limit of 25%. It adds up quickly.
The National Taxpayer Advocate provided an example in a blog posted on April 12. Imagine a person who owes $3,000 in federal income tax. Maybe the person is not submitting a statement or asking for an extension because they think they will submit it if they can afford it.
In this example, the taxpayer "could be fined $750 plus interest within five months," the blog noted. "Even if the amount of tax owing on a taxpayer's tax return is not large, but the return is more than 60 days late, there is a minimum penalty for failure to file the return that is less than $435 or 100% of the tax required to be presented on return".
What happens if you file taxes wrong?
Sometimes you file a tax return and then realize you made a mistake. You may have forgotten some documents, such as B. A 1099 for a mutual fund held outside of a 401(k) plan. Or maybe it's just a miscalculation.
The IRS has an online tool to help you determine if you need to amend a return. Taxpayers can use the form Do I need to file an amended return? on IRS.gov to decide whether to correct an error or make other changes.
What happens if 2 plus 2 does not equal 7? Do not submit an amended return to correct a calculation error or if you forgot to attach a form or schedule. The IRS says it will correct the miscalculation when processing the return and notify you via email. You will receive a letter requesting the missing forms or schedules.
Submit an amended return if there is a major problem such as: B. a change in income or the amount of tax you owe. If you made a mistake on a deduction, you must also submit a corrected return.
See Form 1040-X, Amended U.S. Individual Income Tax Return. For 2020, 2021 or 2022 you can submit electronically in many cases, but not all. Taxpayers who file an amended return electronically can receive a refund by direct deposit to their bank account. But this option is not available for those submitting on paper.
The IRS says that if you "amend a previous tax return that was originally filed on paper in the current processing year," you cannot file an amended tax return electronically. In this case, the amending declaration must also be submitted in paper form.
Alexandra Daddario
Fortunately, this year's tax filing deadline is not April 15. Now is the time for the reality check. The deadline for this year's income tax, April 18 for most taxpayers, is fast approaching.
With taxpayers crunching the numbers at the last minute, it's important to ignore the myths, do your math, and move on. Here are some things to consider in the final hours ahead of us.
How to file a tax extension
Regardless of your income, you can request an extension to file your taxes with the IRS Free File at IRS.gov. If you file Form 4868, you can get a six-month extension until October 16 to file your tax return.
But beware: your tax bill is due on April 18. You get an extension to submit, not an extension to pay for. If you think you owe money, it's important to pay as much as possible by April 18 to avoid interest and penalties.
The IRS estimates that in 2023, more than 20.5 million forms will be submitted electronically or on paper nationwide to request an extension.
If you get an extension, you don't have to wait until October to file the return. It is best to make the filing once you have all the required documents that will allow you to file an accurate return.
Is everyone required to file by April 18?
The IRS has a long list of federally declared disaster areas where the April 18 deadline does not apply. In these cases, you do not need to submit Form 4868 to receive an automatic renewal. Victims of severe storms and tornadoes in Tennessee that hit, for example, March 31 and April 1 now have until July 31 to file and make their federal income tax payments.
The IRS also provides such relief to disaster-affected taxpayers in several other states, including California, Alabama, Arkansas, New York, Mississippi and Georgia. Visit the IRS.gov website for details.
What happens if you don't file taxes?
It's true that a lot of people don't have to file a tax return because their income is so low that they don't have to. But did you have taxes withheld from a paycheck that you could repay through a tax refund? Have you made estimated payments?
If you submit a return, you may receive a refund of some of the money that was withheld. And many low-income working families would receive a larger tax refund if they qualified for the earned income tax credit.
The IRS has an online tool at IRS.gov to help you determine if you need to file a tax return. He says, "Do I have to file a tax return?" You'll need your filing status, federal income tax deductions (shown on a W-2 or year-end paycheck), and other basic information to determine your gross income. New enrollment thresholds are set each year.
For example, if you are single and under age 65, you must file a federal tax return if you earned more than $12,950 in 2022. If you are age 65 or older, the threshold is $14,700 for a single person. according to the IRS
If you are married and both spouses are under age 65, the IRS limit is over $25,900 for both spouses combined. Your age is determined by your age on 31/12/2022. For the elderly, the thresholds are slightly higher.
The IRS notes that self-employed people must file an annual tax return and pay estimated quarterly taxes if they had net self-employment income of $400 or more.
What happens if you file taxes late?
People who owe money or who imagine they owe a large sum of money may want to hide. But ignoring your taxes only makes things worse, as you'll be subject to a hefty fine if you owe money or don't ask for an extension.
A non-declaration penalty of 5% of the unpaid tax will be imposed each month or part of a month of late declaration, up to a limit of 25%. It adds up quickly.
The National Taxpayer Advocate provided an example in a blog posted on April 12. Imagine a person who owes $3,000 in federal income tax. Maybe the person is not submitting a statement or asking for an extension because they think they will submit it if they can afford it.
In this example, the taxpayer "could be fined $750 plus interest within five months," the blog noted. "Even if the amount of tax owing on a taxpayer's tax return is not large, but the return is more than 60 days late, there is a minimum penalty for failure to file the return that is less than $435 or 100% of the tax required to be presented on return".
What happens if you file taxes wrong?
Sometimes you file a tax return and then realize you made a mistake. You may have forgotten some documents, such as B. A 1099 for a mutual fund held outside of a 401(k) plan. Or maybe it's just a miscalculation.
The IRS has an online tool to help you determine if you need to amend a return. Taxpayers can use the form Do I need to file an amended return? on IRS.gov to decide whether to correct an error or make other changes.
What happens if 2 plus 2 does not equal 7? Do not submit an amended return to correct a calculation error or if you forgot to attach a form or schedule. The IRS says it will correct the miscalculation when processing the return and notify you via email. You will receive a letter requesting the missing forms or schedules.
Submit an amended return if there is a major problem such as: B. a change in income or the amount of tax you owe. If you made a mistake on a deduction, you must also submit a corrected return.
See Form 1040-X, Amended U.S. Individual Income Tax Return. For 2020, 2021 or 2022 you can submit electronically in many cases, but not all. Taxpayers who file an amended return electronically can receive a refund by direct deposit to their bank account. But this option is not available for those submitting on paper.
The IRS says that if you "amend a previous tax return that was originally filed on paper in the current processing year," you cannot file an amended tax return electronically. In this case, the amending declaration must also be submitted in paper form.