If they filed an extension, it would be Oct. So if a person didn’t file their 2020 taxes but owed nothing, Walker said they’d face a to claim their refund. After three years, however, the unclaimed money reverts back to the Treasury Department. Here’s the twist: if a person doesn’t owe taxes and is due a refund, they have a three-year window to file their return free of any penalties. The top total penalty would be 47.5%, the IRS said - that’s a total 22.5% for late filing and 25% for late payment. The payment penalty starts at “0.5% of the unpaid taxes for each month or part of a month the tax remains unpaid,” the IRS said. The failure to file penalty starts at “5% of the unpaid taxes for each month or part of a month that a tax return is late,” the IRS notes. The failure to file penalty and the failure to pay penalty both hurt, but Andy Phillips, director of H&R Block’s Tax Institute, noted the filing penalty is steeper and builds faster than the failure to pay penalty. And don’t forget the IRS repayment plan options, she said. ![]() So if a taxpayer is ready with a tax return now, but is still unable to pay, Walker said they should at least file the return to avoid the failure to file penalty. 15 would incur a failure to file and a failure to pay on the remaining sum. 15 but still hasn’t paid in full, a return filed after Oct. If a person owed taxes and didn’t seek an extension, they would be facing failure to file and failure to pay penalties from May 17 onwards. ![]() The price of blowing the deadline is based on the tax bill a person faces, Walker explained. “If you do owe taxes, we certainly recommend you go filing and paying as soon as can.” It’s best to file electronically, instead of via mail, she added. It’s still wise to file as soon as possible, even if there are no looming penalties, she emphasized. 15,” said April Walker, lead manager for tax practice and ethics with the American Institute of CPAs, a professional organization. “If you do not owe any taxes, generally there is no penalty for filing that return late, after Oct. Taxpayers who miss deadlines face penalties The tax collection agency has given extra filing time to other states and communities recovering from natural disasters. 3, 2022 deadline to file their 2020 returns. Last month, in the wake of Hurricane Ida, the IRS said Louisiana residents and business owners were given a Jan. More than 16.5 million households asked for extensions this year, according to IRS projections. ![]() (The IRS can arrange installment plans for people who could not pay in full by that time.) 15 due date for returns after an extension stayed intact and taxes still had to be paid by May 17. One change said the first $10,200 in jobless benefits an unemployed person received during 2020 were exempt from income tax, an effort to help the millions forced to the unemployment line by the pandemic.ĭespite the new deadline, the Oct. The extra time afforded the IRS some breathing room to juggle a third round of stimulus payments authorized in the $1.9 trillion American Rescue Plan, as well as tax provision changes in the freshly-passed law. More than a month into the filing season, the IRS pushed the deadline to pay federal income taxes and file a return to May 17, back from the traditional April 15 date. But laggards face risks.Īt a time when so much federal tax money is potentially on the table - from missed-out 2020 stimulus checks to tax breaks on jobless benefits - it’s best to know what the Oct. If you employ a nanny, maid, gardener or other household worker, you also have until April 18 to file Schedule H and pay their employment taxes.That sounds pretty ironclad, right? Well, here’s an understatement: tax rules can get complicated, which means there could be life for a still-pending return even after the Oct. For most people, April 18 is the last day file a 2022 tax return, unless you file an application for an automatic six-month extension with the IRS, which is also due on April 18. Withdraw Excess IRA Contributions in 2022 to Avoid Penalty if Filing of Form 1040 Was Not ExtendedĬontribute to Health Savings Account (HSA) for 2022Ĭontribute to Solo 401(k) Plan or Simplified Employee Pension (SEP) Plan for 2022 by Self-Employed if Filing of Form 1040 Was Not Extendedįile 2019 Tax Return (Form 1040) to Request Unclaimed Tax Refund for the 2019 Tax YearĪpril is the most important month on the tax calendar. Tips for March 2023 Reported to Employer (Form 4070)įile 2022 Tax Return (Form 1040) and Pay Tax Dueįile Form 4868 to Request 6-Month Income Tax Return Filing Extension (payment of tax not extended)įile Schedule H (1040) and Pay Employment Taxes for Household Employees (file separately if Form 1040 is not filed)Įstimated Tax Payment for 1st Quarter of 2023 (Form 1040-ES)Ĭontribute to Individual Retirement Account (IRA) for 2022 First Required Minimum Distribution (RMD) by Individuals Who Turned 72 in 2022
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