IRS Extends More Tax Deadlines Due to COVID-19 Insights KSM Katz, Sapper & Miller

Farmers and fishermen can make a single payment of 2022 estimated taxes (instead of making quarterly payments) — that payment is due January 17. If you expect a tax refund for one or more previous tax years and you have not filed an IRS or state income tax return, you will most likely not be subject to late filing and certainly not for late payment penalties. However, you only have three years after the subject tax year to claim your tax refund.

The three-month extension will automatically apply to calendar year filing individuals, inclusive of the self-employed, trusts and estates as well as C corporations. In Virginia, individual income tax filings were originally due May 1. However, the state has granted an automatic six-month extension. If a taxpayer files during the extension period but owes, they must make an extension payment to avoid additional penalties and interest. Idaho Gov. Brad Little extended the deadline to file state income tax returns and to apply for property-tax relief to June 15. Tax returns filed by June 15 will have no interest or penalty charged.

Credits & Deductions

If you were exempt from tax withholding in 2022, this is the deadline to file a new Form W-4 with your employer if you intend to reclaim the exemption for 2023. Here are a few more tax deadlines to keep in mind — and not all of them involve tallying up with the IRS. Congress made a number of changes to tax benefits, such as the Earned Income Tax Credit, or created new ones for individuals and small business owners to provide pandemic relief.

• For the tax year 2022, people who have self-only coverage in a medical savings account (MSA) must have an annual deductible that’s between $2,450 and $3,700.
• Taxpayers can file now and schedule their federal tax payments up to the Oct. 15 due date.
• In general, the IRS assures filers that the quickest — and safest — method for getting a federal refund is filing electronically and opting for direct deposit.
• Remember, the sooner you file, the sooner you’ll get any refund owed to you.

And if you’re owed a refund, taking longer to file your taxes means you will wait longer to get your refund. That way, you will avoid being hit with any potential late filing or late payment penalties. Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. During the year, if either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced or phased out.

Petitions and Claims

For the 2020 tax year, the standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly, which is up from the $12,200 for individuals and $24,400 for married couples in 2019. It’s $18,650 for heads of households, which is up $300 from 2019. You can pay your taxes by credit card if you don’t have the money you owe on hand. You can also ask the IRS for a payment plan via this online tool. Those who file and have their 2020 return processed on or before Nov. 1, may be eligible for two payments of half the credit in 2021. Similarly, people who file and have their return processed on or before Nov. 29, may be eligible for one payment.

It’s recommended to file electronically to get your refund as quickly as possible. This year, Tax Day is on April 18, 2023, to accommodate the holiday of Emancipation Day on April 17, which is recognized in Washington DC. State tax deadlines may vary so make sure to check your state’s government website for accurate information.

State tax returns

For anyone who missed out on the first two rounds of stimulus payments, it’s not too late. People who didn’t get a first and second Economic Impact Payment or got less than the full amounts can get that missing money if they’re eligible for it, but they need to act soon. This medical account, available to individuals who have a high-deductible health plan, provides a tax-saving way to pay for out-of-pocket costs. You have until the tax deadline to contribute to an HSA for the 2023 tax year.

You’ll still have to repay any payroll taxes deferred in 2020, but Congress has given you more time to do so. Under stimulus-related legislation signed into law on Dec. 27, you’ll now have until the end of 2021 to repay the deferred Social Security payroll taxes before penalties and interest start to accrue. The IRS issued guidance last August that gave employers the option to defer collection of employees’ portions of Social Security payroll taxes between https://turbo-tax.org/ Sept. 1 and Dec. 31, 2020. The idea was to give workers a bit more in their paychecks during that four-month stretch in order to help ease the impact of the COVID-19 crisis. Employees originally were required to repay the deferred taxes this year by April 30, either in a lump sum or incrementally through increased paycheck withholdings. In order to itemize deductions, you need to have more in deductions than the standard deduction, which everyone gets.

Offers in compromise and requests for deferment require additional paperwork and must be approved by the IRS. If you can’t afford to pay your tax bill in full on the deadline, don’t pull out your credit card or ignore the situation. Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky worked for Wolters Kluwer Tax & Accounting, and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky holds a law degree from the University of Connecticut and a B.A.

The credit amount is $2,000 per qualifying child and the maximum refundable portion of the credit is $1,500 in 2022. The Tennessee Department of Revenue has extended the due date for filing and paying franchise and excise tax to July 15. To find out when your refund is coming once tax season begins, use the tracking tool on the IRS website beginning https://turbo-tax.org/2020-federal-income-tax-deadline/ 24 hours after e-filing your return. You’ll need your exact refund amount, Social Security number or taxpayer ID number, and filing status. Employees need W-2s and non-employees, including contractors or gig workers, need 1099s. These forms will either be mailed to you in February or will be available online through your payroll company.

In other words, saving for the future lets you shield that $10,000 from taxes (and even more if you’re 50 or older; read more on 401(k) contribution limits here). Many employers offer to match a portion of what you save, meaning that if you contribute enough to your account, you’ll also nab some free money. Estimated tax payments on income earned during the first quarter of the year (January 1, 2023, through March 31, 2023) are due today. Even though the IRS extended the federal filing deadline, each individual state sets its own tax deadlines. Individuals who owe taxes can also postpone their payments to May 17, 2021 without penalties and interest. Those who need more time can still file an extension through Oct. 15 as usual, but will need to make any tax payments owed by May 17.

Due to the Covid crisis, there are plenty of new and revised provisions and important dates you will need to know about before filing your 2020 return this year. To understand how individuals (including self-employed individuals, trusts and estates) and corporations will be impacted by this tax deadline extension, read more below. However, you should also consider the complexity of your return (go the pro route if you own a business, had a major life event, or want to itemize), your tax proficiency, and your schedule. In general, you’ll save money but not time if you prepare your own return. If you go with a tax pro, you’ll generally save time but not money. Of course, an experienced tax preparer may save you more money than you spend on their services, so that should be taken into account, too.

February 2023 Tax Deadlines

And, for many people, there are more tax deadlines to worry about than just the due date for your income tax return. 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. And there could also be other negative consequences for being late, like losing out on a valuable tax break. That’s why it’s so important to be familiar with the various tax deadlines throughout the year.

States typically have the same tax deadline as the federal government. This typically does not change, although in 2021 when the tax deadline was automatically extended by an additional month due to COVID-19, five states ended up allowing even later tax filing deadlines. WASHINGTON — The Treasury Department and Internal Revenue Service announced today that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021. October 15, 2021 is the due date to file 2020 federal income tax returns for those who filed for an extension, except for those who are in an area that has been granted an extension due to storms, fires or other disasters. Electronic filing options, such as IRS Free File, are still available. If you need more time to file your taxes, you will need to file for an extension with Form 4868 before the tax deadline every April.