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So far this tax season, the IRS has received more than 100 million income tax returns for 2022.
That means tens of millions of households have yet to file a tax return. If you’re one of them, here are some last-minute tax return tips to keep in mind as the Tuesday, April 18 deadline approaches.
Those online tools can be especially helpful today if you’re trying to get a refund before midnight. Or, if you realize that you need to apply for an extension. Either way, here are some important things to know:
For example, due to multiple episodes of extreme weather in recent months, tax preparers in most of California — 10% to 15% of all federal filers — have been given an extension to file and pay their taxes until now. 16, according to an IRS spokesman.
If you are serving in the armed forces and are currently or recently stationed in a war zone, your 2022 tax filing and payment deadline will most likely be extended by 180 days. But your specific application and extended payment deadlines will depend on the date you left (or left) the war zone. This IRS Publication provide more details.
Finally, if you made little or no money last year (usually less than $12,950 for single filers and $25,900 for couples), you may not have to file a tax return. However, you may still want to if you think you qualify for a refund, such as refundable tax credits such as Earn income tax credits. (Use this IRS tool to assess whether you are required to file this year.) You may also be eligible to use IRS Free File (for those with adjusted gross income of $73,000 or less) you won’t have to file a return.
Your salary may not be your only source of income: If you have a full-time job, you may think that it is the only income you earn and must report. But that’s not necessarily the case.
Other sources of taxable and reportable income include:
- Interest on your savings
- Investment income (e.g. dividends and capital gains)
- Pay for part-time or seasonal work, or side work
- unemployment income
- Social Security benefits or distributions from a retirement account
- Advice
- winnings
- Income from rental properties you own
Organize your tax documents: By now, you have received all tax documents required to be sent to you by third parties (employer, bank, brokerage, etc.).
If you don’t remember receiving a hard copy of your tax form in the mail, check your email and online account — the document may have been sent to you electronically.
Here are some tax forms you may have received:
- W-2 from your salary or paid work
- 1099-BELL to raise capital and losses about your investment
- 1099-DIV from a brokerage or company where you own shares to receive dividends or other distributions from their investments
- 1099-INT interest over $10 on your savings at a financial institution
- 1099-NEC from your client, if you work as a contractor
- 1099-CZK to pay for goods and services through third-party platforms like Venmo, CashApp, or Etsy. The 1099-CZK is required if you have made more than $20,000 in more than 200 trades during the year. (The following year the reporting threshold down to $600.) But even if you don’t get a 1099-K, you’ll still have to report all earnings you earn on a third-party platform in 2022.
- 1099-CHEAP for distributions over $10 that you receive for a pension, annuity, retirement account, profit-sharing plan, or insurance policy
- SSA-1099 or SSA-1042S for Social Security benefits received.
“Please note that there is no form for certain taxable income, such as proceeds from the rental of your resort property, meaning it is your responsibility to self-report such income, according to the Illinois CPA Association.
A last-minute way to lower your 2022 tax bill: If you are eligible to make a Tax-deductible contributions to an IRA and have not done so for the last year, you have until April 18 to contribute up to $6,000 ($7,000 if you’re 50 or older). That will lower your tax bill and increase your retirement savings.
Re-read your return before submitting: Do this whether you are using tax software or working with a professional tax preparers.
Minor errors and omissions delay the processing of your return (and its release your refund if you owe one). You want to avoid things like misspelling your name, date of birth, Social Security number, or direct deposit amount; wrong filing status (e.g. married versus single); make a simple math error; or leave the required field blank.
What to do if you cannot apply by April 18: If you are unable to submit your application on time, please fill it out Model 4868 electronically or on paper and submit it no later than today. You will be automatically given a six-month extension to apply.
However, please note that file extensions are not paid extensions. You will be charged interest (currently at 7%) and penalty on any amount you owe for 2022 but unpaid by April 18.
So if you suspect you still owe taxes—perhaps you have some non-tax-deductible income, or you had a large capital gain last year—estimate how much you owe more and send that amount to the IRS by the end of today.
You may choose to do so by mail, attaching the check to your renewal request form. Make sure your envelope is postmarked no later than April 18.
Or the more efficient route is pay what you owe electronically at IRS.gov, said CPA Damien Martin, a tax partner at EY. If you do, the IRS notes that you won’t have to file Form 4868. “The IRS will automatically process an extension of time to file,” the agency notes in its guidance.
If you choose to participate electronically direct payment from your bank account, for free, select “extensions” and then “tax year 2022” when optionally provided.
You can also pay by credit or debit card, but you will be charged processing fee. However, doing so can turn out to be much more expensive than just a fee if you charge taxes but don’t pay your monthly credit card bill in full, as you could end up paying high interest rates on your credit card. unpaid balance.
If you still owe income tax to your state, keep in mind that you may need to do a similar exercise of applying for an extension and paying your state’s department of revenue, Martin. speak.
Use this interactive tax assistant for basic questions you may have: The IRS offers a “interactive tax assistant” can help you answer more than 50 basic questions related to your personal circumstances regarding income, deductions, credits, and other technical questions.
